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Hi Jim: Hi Steve: Sorry Walt ! You’re just the most easily recognized of the business guruhs (sic) to come down the pike with the same message:
b If you don’t mark it up, you’re gonna lose money !
When I started, I knew you had to add something on to make a profit, but I didn’t have a clue what it was, or what was allowed, or common. Truth is …no one else did either. I had a better idea, because I used to help put together bids for heavy and highway. Well, 1st, they had already identified their costs and those were spread to the unit cost items, and then they would develop a bid strategy, etc, etc…..bottom line, there is no direct comparison between Heavy construction and home remodeling. Except for one thing…….
b ALL pricing has to include 3 things direct costs, indirect costs and profit.
Wether your work is T&M, Construction Mgmnt, Fixed Sum, Cost plus Fixed Fee. It still has to have those same things. If you don’t , you can’t stay in business because you can’t pay your bills.
b This thread is about MARK UP !
How do YOU do it ? When Walt Stoeppelwert says (Direct Costs plus 67%) , do you think he’s blowin’ smoke ?
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Hi Jim: Hi Steve: Sorry Walt ! You're just the most easily recognized of the business guruhs (sic) to come down the pike with the same message:
b If you don't mark it up, you're gonna lose money !
When I started, I knew you had to add something on to make a profit, but I didn't have a clue what it was, or what was allowed, or common. Truth is ...no one else did either. I had a better idea, because I used to help put together bids for heavy and highway. Well, 1st, they had already identified their costs and those were spread to the unit cost items, and then they would develop a bid strategy, etc, etc.....bottom line, there is no direct comparison between Heavy construction and home remodeling. Except for one thing.......
b ALL pricing has to include 3 things direct costs, indirect costs and profit.
Wether your work is T&M, Construction Mgmnt, Fixed Sum, Cost plus Fixed Fee. It still has to have those same things. If you don't , you can't stay in business because you can't pay your bills.
b This thread is about MARK UP !
How do YOU do it ? When Walt Stoeppelwert says (Direct Costs plus 67%) , do you think he's blowin' smoke ?