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How Much Do You Charge Per Square Foot?
Should be something that is never asked again. In any type of construction work, no matter what type of contractor you are, and whatever experience you have, this course is going to help you get away from calculating your square footage price to arrive at an estimate number. It will help you ensure that you are making the money you should be with every estimate that is sent out.
From Budgeting to Job Costing, we cover the entire process of creating an estimate that takes into factor your entire business operations and ensures that you are not just putting a blind estimate out and hoping that you are able to cover your business expenses at the end of the year, but that you are calculating all of these expenses into every estimate.
Not only will this information help you create calculated estimates, but it will also help you create a system that allows you as the business owner to hand this to one of your current or future employees and know that they are going to calculate the same number for the estimate that you would. If you are interested in a spreadsheet that will do this all, you can click here for our Budget and Estimate Spreadsheet.
What is in This Course?
Labor Costs and Production Rates
We cover what is included in creating a budget for your year from deciding how many weeks to budget in your season and how that affects every estimate that is sent out to your customers. Along with the budgeting portion of our course, we continue on to Overhead Expenses and how they play such a large role in calculating an estimate.
We walk you through all of the different Overhead Expenses that you need to calculate for your business and how you factor these into every estimate that is sent out. We make sure that you know what you need to include with your Overhead Expenses from vehicles and equipment to rent and accountant fees.
How do you calculate your employee costs into a job? What is the difference between a salary and hourly employee? Factoring in labor costs is important to quoting. As is calculating the hours needed on a job site. This is where production rates play such a vital role in the accuracy of your quotes. We run through what is needed to create your own production rates in your business and how you can apply them to your quotes.
Should you be marking up your material costs? What do you do when a customer suggests that they will be the one to supply the materials? Most of the time it is because they think they will save money that way. How can you build trust with them to assure them that you should be responsible for supplying the materials? We cover all of that in this portion of the course.
What is the Job Costing method? What does it do for your business? Comparing the actual numbers of a project to what was quoted or estimated is an essential part to growing your business. This is job costing and it will allow you to see what went right and what went wrong with your quote or estimate and how you can improve your business in the future.
Systems are important to any business. If you can create a system that will reduce the amount of time you spend on something or that you can hand off completely to someone else so that you can focus on more important things, then you are building a sustainable business. This is the importance of creating systems.