Im a small to medium residential contractor. Just wondering how many guys price jobs by the day and how many do it by the job. I seem to have to price by the day lately or its not worth doing the job. For exp. my overhead is $200 a day Ins, vehicales, Fuel, taxes etc. it cost me another $150 a day for my helper thats $350 when i get in the van and i didnt make anything for myself yet i need to make $400+ a day. So ive been charging $800 a day plus material. My issue is on small 1 or 2 day jobs i dont want to turn them away due to the fact i somtimes get bigger jobs through these small jobs. But if i do a job that takes 6 hrs i have to charge a full day what are you going to to do the rest of the day. You cant always go start a new job the helper only wants to work til 4:30 or 5:00 its a hour ride home. I need to make a certain amount a day. How do you guys in my situation handle it . By the way im in NY westchester area.
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Phil,
I'm in nearly the same boat as you as far as OH goes and I'm in NJ.
I used to estimate by the hour, until I realized that I was losing a lot of time and money with 3/4 day projects.
For smaller jobs, I just figure on how many days it will take and go from there.
Remember, if you are on the job for 6 hours, the customer bought the whole day. What are you supposed to do with the other 2 hours?
However, some tasks that take 6 hours might look way overpriced going with the full day rate. I use judgement to make the call.
Charge for the whole day. If you finish early, the day is yours. Do not price yourself by the hour or half day. You are most certain to go under if you do. Don't you have some small stuff at home that you never have time for. That is what to do with your early work days. Or go fishing. Or go price a job out. People love to have a job done on time or earlier. You are a pro, does the doctor charge less for a appointment that he is late for? My son had his wisdom teeth out last year, and the insurance covered only 4 teeth, he had 5, who picked up the cost? Not the doctor thats for sure.
Good Luck Jim Z
I used to charge by the day ten, twelve years ago. Slowly, I found myself writing up bills including charges for a half-day here, another half-day there, etc. It just seemed the only way to do it fairly. I don't remember at what point I gave that up completely and started billing by the hour, but that's what I do now.
There is, however, a three hour minimum. It costs me that much just to load the truck and go over and back, even if the job itself only takes ten minutes.
Dinosaur
A day may come when the courage of men fails,when we forsake our friends and break all bonds of fellowship...
But it is not this day.
I struggle with this issue all the time. This afternoon, I'm going to a job to second coat some drywall around two doorways about 3-4 miles from home. Should take about 30 minutes including clean-up. I find it hard to charge 2-3 hours for a half hours work unless it's a one time shot. I guess I'm afraid of pricing myself out of the market.
Just want to sleep well at night, and not feel like I'm over charging.
Curious, what do you think? Am I shooting myself in the foot here?
Dez
No, I don't think you're shooting yourself in the foot.Remodeling Contractor just outside the Glass City.
Quittin' Time
Thanks Calvin,
Not gettin' rich here, but still sleepin' well!
Dez
I agree with Calvin; you're not shooting yourself in the foot.
Gyprock work is a PITA for both contractor and client because of that hurry-up-and-wait element that is almost inevitable. So that means, on small gyprock jobs, I have to come back three or four times and spend an hour or so on site and a couple of hours preparing and traveling. I bill the 3-hour minimum. If I can think of anything else useful I can do once I've arrived at the site, I'll do it to flesh out the 3 hours. But if I can't, I'm not going to lose sleep over it.
That's just the nature of small jobs. If the client was buying more work, he'd wind up having paid a lower cost per square foot at the end of the job when all was calculated. But he's not. He's only buying a little, so it costs more in the end. This is the same phenomenon that enables you, for example, to buy a whole bushel of tomatoes for 20-30% more than a 3-quart basket during the tomato harvest. A wholesale market charges you less per unit than a grocery store because you're buying more units in a single shot, and it costs them less money to sell in large batches to fewer clients.
Dinosaur
A day may come when the courage of men fails,when we forsake our friends and break all bonds of fellowship...
But it is not this day.
I agree with you 100%! It's just hard to do, for me. I guess that I think for the consumer. Especially when you already have the whole job, and you're just required to do a quick stop by, for 30 min or less. How can I bill them 4-6 times more, with a clean conscience? (my minimum is two hours) I have no problem when it is a one time shot! But when it is part of a bit bigger job, (two -three days or more) it seems like too much to charge for the time spent. ($1,000 + job is what I'm referring to)
Dez
I agree with you 100%! It's just hard to do, for me. I guess that I think for the consumer.
I think for the client, too. That's how I develop my business over the long term, which is supremely important to sleeping well at night....
I don't so much have a 'sliding scale' of rates depending on the income of the client; but I do work with them up front to plan their job to come in at a cost that's appropriate to their means. A lot of people have no idea what it costs to accomplish something they're seen in another home or in a magazine somewhere; they only know they think that's what they'd like. It's part of my job to make sure they don't get fixated on something that's gonna ruin them or make them say ouch every time they think of my bill in later years. So a client that wants ceramic tile in the bath to replace the old hardboard fake tile will get a DCA based on the level of ceramic work they can afford comfortably. I'm not going to suggest a full-bore Dal-tile mosaïc that's going to take me three weeks just to assemble for the dry fit to somebody who's working a job-job in MTL and spending weekends up here in a converted summer cottage.
But I will suggest that same thing to Mrs. Well-to-Do who owns a business in the US and pays more in income tax each quarter than I make in three years....
SO, I guess the message is: If you see a likelihood for the client getting cheesed-off by the billing on stuff like a small gyprock job--because of the multiple minimum charges you'll have to make--why don't you suggest she consider wood paneling for that same area? The bill may very well come out to the same thing...but she'll see you in there once or twice, working the whole day, instead of dropping by for a half hour or forty-five minutes four or five times.
Dinosaur
A day may come when the courage of men fails,when we forsake our friends and break all bonds of fellowship...
But it is not this day.
You guys are missing a very important point here, and that the fact that you're trying to make everything fit an "eight hour day", which is the typical workday for the majority of America. Reality is, there's not always an 8-hour day available to us in this business (at least not 8 hours of nail banging), so stop figuring your costs that way!
Think of it this way- if you use an 8-hour day x 5 days/week x 50 weeks/year (assuming you take some vacation), you end up with 2,000 hours of available "billable hours". Reality is, especially for the owner of the company, you'll probably end up with more like 1600-1800 billable "nailbanging" hours. If you set your hourly rate based on 1600 or 1800 hours, it'll obviously be higher per hour, but who cares? Stop charging by the hour, and no one will know the difference!
I figure my time this way- I need to make $XX per day to cover my take-home (including my wife's wild spending sprees...lol), taxes, OH, etc. Whether I'm working 10 minutes from the house and planning on putting in 10 hours on a project, driving 90 minutes to Philadelphia and spending 3 hours with a client, or hopping on a plane to Atlanta for a 45 minute walkthrough on a house, I'm still charging $XX per day, and I'm not worried about "what I'm going to do for the rest of the day". Maybe I'll do some paperwork, maybe I'll stop and see a potential client, or maybe I'll play a round of golf.
When you try to figure everything by the hour, and worry about "cheating someone" the only person getting cheated seems to end up being the contractor. It's not your fault that the drywall needs 3 coats of mud and you can only put on one per day (of course, you could consider Durabond...). Why should you suffer because the homeowner has such a small drywall project for you?
Bob
There's the real truth. I figure I can work 1500 hours on the job per year. That's 30 per week, not 40. But I want to get paid for 40 hours, let's say at $50 per hour. That's $100,000 per year... but I have to make it in 1500 hours, so it's actually $66.67 per hour.
The customer doesn't know this. All they see from me is a bottom line... no hourly rates, no materials broken out, no markups shown. Like Mike is saying.
I'm trying to educate a sub that works for me. He does dirt work, charges $100 to drop off the machine, $90 per hour to run it. Recent job took 1.5 hours, so he billed $100 + $135. But... the job is 30 minutes from town.... and gas is WAY up.... and we stand around jawing for 1/2 an hour when he gets there.... then he has to find somewhere to leave the trailer... and the owner comes out and jaws at us for another 1/2 hour.
I'm gonna have to tell him that if he doesn't start charging more (maybe a per-trip charge in this case) I'm going to hire someone else who does, and will be around in the business for the long term.
Many of the posts on this board indicate that guys out there think they can charge $45 per hour for the hours they work and make it. Ain't so.
stuff like that sometimes you are better off charge'n by the job if it will take 3-4 trips (ie... between coats) if you have several jobs going then you might have to stop at 3-4 jobs in one day... or on the way to or from a larger job.... most people understand letting things dry ect.. and that it just takes time for the natural order of things... if you have 2-3 stops that are about the same u might not have to clean tools between stops...
p
In an ideal world...to be sure.
LOL yeah no such thing as an "ideal world" but you as an expert... no matter what you are doing if someone is paying you to do it... YOU are the EXPERT they look to you to know what it takes to get the job done... material and time wise .... I think guys make more money and customers are more comfortable knowing this is going to cost...$1000.00 period... everyone has a budget they have to live within... and it just seems to make everyone more comfortable start to finish knowing exactly how many $$$ will trade hands in the end... We all know things pop-up and can change... but a somewhat detailed agreement on the frontend helps... if it's something you do day in and day out... people expect you to have a pretty good grasp of what is involved in the project... this should really ring true on smaller jobs... then it's up to you to manage your time and planning to be where you need to be and for how long...
just my point of view ... don't be scared of the money price if fair to YOU, tell the homeowner it will take 10 days start to finish if you figure 7... if you think you can do it in 20 hours labor... figure 30... small jobs should be priced at a premium... I think 1/2 upfront and 1/2 due the day it's finished is fair.... always let the customer know the day before you are finished that you'll need a check for the balance the next day... and leave an invoice... if all this is discussed on the front end it should all be expected and planned for... In my experience the more professional you appear.. from your truck to your dress to your actions, the more people will treat you as an professional and not question what you do and how you do it...
p
All good advice...thanks everyone.
I price things by the day, but figure it by the hour. and contrary to what someone else here said, I tell the client exactly what I'm doing. For example, I may look at a job, and say, "I know this will take me a least 5 hours or so, but I doubt it will take 8. But I have to charge for a full day, and my rate is X dollars an hour, so I can do the job for $Y. That's the price."Or I might say, "I know this will take at least 5 to 6 days, but it won't go longer than 8. So I'll price it at my rate, which is $X, times 64 hours. If it turn out to take less than 64, I'll just charge you by the actual hours I worked. If it takes more hours, those are on me." I keep a close track of my hours, and make sure they know that any changes require more hours added to my max. I don't miss by much, and my hourly rate is high enough I don't cry if I go over a few hours. I let them pay for materials, and I'll transport them, but my hourly rate applies whether I'm hauling or working. If I work for an hour getting them a materials list, that's an hour I bill them for. I don't have any problem telling people my rate, and many times I'll do it over the phone. For example, if someone describes a situation that I can tell just from listening on the phone it will take a good chunk of a day, but not all day, I'll tell them, "When I come out to the house, all I'm going to do is look at the job, and figure up how many hours I think it will take. From what you've told me, it sounds like it will take most of a day, so probably I'll figure it at 8 hours, times my hourly rate, which is $X, and that will be the price of the job. I'll let you pay for all the materials, but I can haul them for you if I need to." If all this sounds agreeable to you, I'll come out and take a look at your project."I only advertize in one place, and people who call me are happy to find me. I think they like me stating my rate right up front, letting them know my time is valuable. They know right up front there are no hidden costs, no markup on materials, etc. This works for me, but I know it wouldn't work for everyone.
Allen in Santa Cruz
allen... don't take a fence.. but you are betting against the house
<<<Or I might say, "I know this will take at least 5 to 6 days, but it won't go longer than 8. So I'll price it at my rate, which is $X, times 64 hours. If it turn out to take less than 64, I'll just charge you by the actual hours I worked. If it takes more hours, those are on me." I>>>>
heads, you lose...... tails, you lose... if it lands on the edge you make your rate
bad odds..
you can do exactly the same thing and change the odds, just don't feel like you have to go to confession every time you talk to a customer
ie: if it turns out less that 64 hours, keep the money.. it helps to pay for the jobs where " it's on me "
one question... how long have you been operating like this ? it sounds like me in my yute
Mike Smith Rhode Island : Design / Build / Repair / Restore
As I said, my way works for me. If I listened to everyone who told me what I couldn't do, I'd be moaning about the low wages like the rest of you. I've been in the trades for 33 years. I have a pretty good idea how long something will take. My clients know that if I run into more than we initially looked at, they will pay for the extra hours. I do excellent work, and I'm not embarrassed to tell people what I charge an hour. I usually make more than my rate, since I do a lot of jobs that I charge the whole day for, but don't work all day. Someone on here likes to say, "Don't be afraid of the money." More people should listen to him. The key is charging a rate high enough to be able to operate like this, and to be able to deliver what you promise. Very few in our business can do that. I can, and I charge accordingly. Even if I don't quite make my rate, I still make more than any other housewright I know.
Allen in Santa Cruz
allen.... WOW !
(sorry, sun just came out... haven't seen it in 8 days )
like you said.. you've got it to the point where it works for you.. and your rate ( whatever it is ) is high enough to cover you..
a neophyte reading your post might not understand all that you are not saying
with your experience, it sounds like your offer to eat the overage is not going to occur.. and it is really just a part of your sales pitch.. a young dude would actually eat the overrage a lot.. that is what i was trying to make clear
personally.. i found out a long time ago .. if you can't get your rate... stay homeMike Smith Rhode Island : Design / Build / Repair / Restore
Mike Smith: Sun just came out here, too - Western Mass near the Vt border!One thing you have to remember when pricing small jobs is simply this - the customer doesn't want/can't do the job. Either they have decided their free time is worth your rate (they pay you to do it during the week so they won't have to do it on the weekend) or they don't have the necessary skill to do the job.
How long did it take you to become an "expert" and at what rate. There is this lingering prejudice against "people who work with their hands" - that we are nit-wits who can't do anything else, and shouldn't make a comfortable living wage. That opinion usually changes when a cocky DIY-er runs into trouble and needs someone to come in and fix their mistakes or an unscupulous person comes along and cleans their clock.
As noted, a doctor won't give a discount if an appointment/procedure goes smoothly and takes less time. And look at their hourly rate! And in the hospital they will charge you for every Q-tip used! Our skills take as much commitment to learn as any other "professional" and don't any of you forget it!
Our main job is to make the customers' dreams come true, and it doesn't hurt to remind everyone involved that that's the bottom line.
"There is this lingering prejudice against "people who work with their hands" - that we are nit-wits who can't do anything else, and shouldn't make a comfortable living wage."I don't know who these people are, but they're not the people I work for. The people I work for realize that I am just as proficient in my profession as they are, and that I deserve to make a good living, just like they do. You're selling to the wrong people.
Allen in Santa Cruz
You're right on all counts, Mike. A newer guy in the trades couldn't do what I do. And my offer to eat the overage is my way of letting them know that they aren't driving into a money pit. I make sure I give myself enough time. If I tell them 64 hours, and it only takes 56, they feel like they got a great deal. I still get my rate for the hours worked, and I haven't lost anything. My rate is high enough I don't have to worry about those other 8 hours I "could" have had. I'll get them on the next job. It seems to me that some of us get too caught up in "looking" professional. I don't have any business cards, I don't have a sign on my truck, I don't do anything just to look like the rest of the guys. I dress in clean work clothes, but my hair is long and I have an earring. I don't dress to make someone else think I'm "professional." I've worked all over the U.S. on all kinds of projects, and I can do lots of things that other guys can't do. Knowing what you're doing, having the confidence to tell people what you can do, then being able to do it, and charging a higher rate for it than other guys do is the way to make money in this business, but it takes time to get to that place.
Allen in Santa Cruz
allen.... how many times have i told you i started out 60 years ago in Santa Cruz?
i 'm running the risk of repeating myself here..
and for sure... no way i could charge or sell when i was starting out, the way i can now..
but forums like this should speed up the process for the yutes..
they shouldn't have to pay the same dues we didMike Smith Rhode Island : Design / Build / Repair / Restore
I remember now, Mike. You are an old Santa Cruz boy.This forum has helped me to develop my philosophy. I've posted some over the past year or two, but I've read for awhile. You and a few others helped convince me to keep raising my rates. I just found out about another guy who pretty much does the same kind of stuff I do, in the same area, and prices things pretty much the same way. By the hour, they pay for materials. A buddy told me about him. He charges $10 an hour more than I do...I think it's time for a rate change. I've finally come to the conclusion I'm not a salesman, and I don't try to sell anything. If I'm interested in doing a job, my enthusiasm usually convinces them I'm the man for the job. If I'm not, I'll tell them. Either way, it's their choice, they can give me a call, but I'm not going to try to sell them anything. It doesn't fit with my image of a high-priced carpenter who has more work than he can do ;)
Allen in Santa Cruz
'Or I might say, "I know this will take at least 5 to 6 days, but it won't go longer than 8. So I'll price it at my rate, which is $X, times 64 hours. If it turn out to take less than 64, I'll just charge you by the actual hours I worked. If it takes more hours, those are on me."
Very generous of you to absorb the risk while the client takes none. I fail to see how this makes sense. I have had one or two people to ask me for this sort of "not to exceed" deal and I ask them to explain to me why I would feel it's fair. They can't.
The only scenario that might work is if I estimate it for 40 hours, finish it in 30, and they pay for the 30 hours plus half of the 10-hour leftover.
What if they want you to deal with the material supplier, pick the materials up, and front the money (with your account at the yard) then striaght bill them for the materials?
I'm not in the lumber financing business. I'm doing a job for a guy right now, who loved the idea that he could go find the materials for the best price. Twice he's asked me if I could pick stuff up that we need, since it won't fit on his truck. I told him to go to the lumber yard, get what we need, and call me when he's ready for me come pick it up. I met him out front, loaded it on my truck, and took it back to the job. Took me about 30 minutes. It would have been cheaper for him to have had it delivered. Oh, well.Everybody has to do what they feel comfortable with. I have no problem telling people I'm not in the finance business. We've all discussed the ridiculous situation contractors have gotten into, where we go to people's house and tell them what their problem is, and how much we'll charge to fix it. For free. I'll come look at a job for free, but anything I do about that job after that, whether it's coming back to discuss how we're going to do things, working up a materials list, etc. , anything, I'm on the clock. One free visit, like the initial consultation an attorney might give. If there are materials to be bought, and I'm buying, I'll need a check first. I'll take it to their bank and cash it, and go buy lumber. johhnyd, when I started out in business, I wanted to get every job that came my way. My girlfriend at the time convinced me I was selling myself short, and one New Year's my resolution was that I was going to start losing some jobs because I bid too high, instead of getting them all because I bid too low. I was happy when the first person told me they were going to look for a lower price. Don't be afraid to lose jobs. If it's too much of a hassle, don't do it. I had a lady call me yesterday to see if I was interested in doing a bathroom remodel. I laughingly told her there were lots of people out there dying to remodel her bathroom, but I'm not one of them. I don't do bathrooms. I do work that is interesting to me, or that is so straight forward, like the eaves I'm boxing now, that I can make easy money doing stuff I've done for $2 an hour when I was coming up.
Allen in Santa Cruz
This is where you use the setting type of joint compound. Do all the coats in one day! Just the final coat is ready mix.
I charge by the hour as well on small stuff as well. I agree with dinasuar about at least charging for a minumum of x amount of hour so that the job is at least worth your while. If you get out of work early you should go take care of the endless sea of paperwork that this job has....or go fishing. I usually will take care of those little errands that i don't seem to have time for during the work week.
Most of my jobs I give the customer a fixed price. If the HO has a punch list of a bunch of small things that i may not know exaclty how long it will take, I charge by the hour. Rotted wood repair though I always charge by the hour becuase you never know what your'e getting into. I think if you charge people by the day for something that may take 5 hours you may be pricing yourself out of some of that small work that can lead to bigger jobs from repeat customers.
Small jobs do tend to be a judgment thing. For all the reasons already stated. But the customer is also paying for travel time, setup time, planning time, bidding time, meeting time, time getting materials, etc.. Think of how much time outside of work you spend organizing schedules, rethinking solutions, etc. while you're in the shower, on the pot, watching t.v., etc.. You want to be fair to the client, but also to yourself. Don't sell yourself short because you only ran power tools six hours out of an eight-hour day.
Sounds like you and Dez understand the concept but are having trouble getting comfortable with it. This is understandable because a) the ones you are presenting your "new" methodology to - the customer - has a vested interest in questioning it or disagreeing with it, and b) you have not yet established a durable set or standards and practices. That will come with time and confidence.
As for the billing method:
1. There is no such thing as a 3/4 day. It is either half or full. 15 minutes over half means it is a full day. That is just the way it is. If you break through this real half day constraint you are taking time away which could be devoted to someone else willing to pay for a true 1/2 day.
2. 1/2 Day work is charged at a premium. If you get used to this, so will your Clients. Just as Dino mentioned - the more you buy the more you save. It is called an economy of scale. (Notice I wrote "is charged" rather than "should be charged". Think in these terms.)
3. For one week, log ALL your hours and tasks during each hour. Log your travel time, your lunch time, your time spent talking on the phone, your time at the supplier, your time in front of the computer (working), etc. This will direct you to where you could economize or refocus your time, but most importantly, it will show you exactly what you are getting paid/ hour.
I guarentee after that exercise, you won't have any trouble charging by the whole or half day and forget the hourly BS.
Keep us posted of your progress.
Frankie
There he goes—one of God's own prototypes—a high powered mutant of some kind never even considered for mass production. Too weird to live and too rare to die.
—Hunter S. Thompson
from Fear And Loathing In Las Vegas
Drywall repairs area PITA. I have a minimum drywall fee of $350 whether I'm patching an electrical outlet hole or installing a 1/2 sheet. The materials are always inconsequential...it's the back and forth that kills you. How much would a plumber or electrician charge to make 4 service calls to the same job? I put this into perspective with customers all the time and THEN it sinks in.Like others said, customers must pay a premium for small jobs because of all the work that goes into dealing with a small job.Let's say in a given week, I have ten 1/2 day jobs lined up. How much time did it take me to sell 10 small jobs as opposed to a one deck job or bathroom that could be built in a week, where I can leave my trailer on site and clean up once? PEOPLE DON'T GET IT.
I hear ya bro.
(Even tho it was addressed to someone else!)
Edited 9/25/2005 1:02 am ET by Dez
phil... seems to me you can avoid the whole issue if you can price your jobs correctly..
IE: if you know a job will take 6 hours.. you sell it for $800.. you 8 hour rate.. the customer never has to know that you figgured it for 6 hours
if you figure a job for 10 hours.. sell it at lump sum.. and couple it with a 5 hour job..
now you have 2 days work , you're charging $1600 and it's getting smoother all the time
the problem with working for a stated hourly rate is that you wind up betting against the house... figure your jobs by the hour , but sell them by the lump sum
the problem with working for a stated hourly rate is that you wind up betting against the house... figure your jobs by the hour , but sell them by the lump sum
That is absolutley true. I realise that some of the guys here find it difficult to price by the job as a lump sum due either to difficulty in estimating how long it is going to take, or by not knowing what lies underneath an apparently simple job.
But, every effort must be made to price by the job if at all possible. How else are you going to hide your outrageous hourly rate from a HO who works (as an employee) for half.
JohnIf my baby don't love me no more, I know her sister will.
All the advice above is good stuff but I think one factor is being forgotten. If you are a slow then price the job in the manner it takes to bring in an income, if you are booming then.........whatever the market will bare. DanT
Phil,
I haven't stopped in here for a while,
but at the risk of repeating myself----here is what I do.
I plan to only work 1000 hours a year------I have NO intention of ever working 2000 plus hours a year. The 1000 hours /year usually breaks down around 300 overhead, 700 production.( this year I am doing a bit more carpentry so I may go a bit over the 1000 hour figure
I have 2 seperate hourly figures which are NEVER revealed to a customer.
One for roofing, one somewhat lower rate for carpentry. All pricing to the customer is generally a lump sum" take it or leave it price"
I don't mind at all working 1 hour today and 6 hours tommorrow and 3 hours the next day. As long as I am getting my price per hour---wadda I care?
I almost always beat my internal hourly production estimates----which in effects raises my hourly pay.Using subs on somethings will effectively raise your hourly earnings also.
If you do it this way you will find yourself pricing yourself out of those time consuming/low profit projects that you really didn't want to do anyhow. Don't feel bad about THAT either!
Best wishes, Stephen
I am primarily a home builder with contracts, but occasionally my superintendent brings in a small project. We always provide clearly defined project responsibilities and a guaranteed price for the job. We no longer work by the hour or day.
It seemed to create too many conflicts with the Homeowner:
you are not working fast enough, you got here at 8:30 not 8:00, I did not know I was to pay you for picking up materials, why did it take so long to get back to the job, have you guys done anything today, are you assemblying that new table saw on my time, I am not going to pay you for the time you spent changing the tire on you trailer, you made a mistake and had to redo some work...who is paying for that time, blah, blah, blah
You do not have to explain your rates, only provide a good value for the project.
I have joked in the past that I have a good name and motto for a new construction company:
Marathon Construction: We work by the hour.
you are not working fast enough, you got here at 8:30 not 8:00, I did not know I was to pay you for picking up materials, why did it take so long to get back to the job, have you guys done anything today, are you assemblying that new table saw on my time, I am not going to pay you for the time you spent changing the tire on you trailer, you made a mistake and had to redo some work...who is paying for that time, blah, blah, blah
Great list, and so short... it goes on and on.