Forum Title: Starting My Own Business
Hello I am hanging my own shingle this year and have been making a handful of bids to customers for projects such as bathrooms, tilling floors, and decks. I have an estimate spreadsheet I use to come up with a price and email my prospective clients an estimate. I figure out how long it will take me to do the work, add up all the hours and then multiply by 1.25 for markup to cover profit. I have broken down my overheard to a weekly number of $475. So however long the project takes in weeks gets multiplied by that number. I then figure known materials and multiply that by 1.25 to get a markup. Taxes are built into that mark up. I am a one man show so all hours are mine. I want to ask is $50 an hour a reasonable rate to charge for labor? I think the people asking me for bids are surprised when the price comes back. When you tile a custom shower and pan it takes 3-5 days for one guy. Maybe more... Am I slow? Am I too high priced? I bid out three bathrooms for demo of existing tile and installation of new tile, new vanities, and new faucets. One bathroom has a tub that only the walls get re tiled. The other two bathrooms have full tiled showers which would have to be tore out and replaced. One is 3x5 and the other is 5x5. In total it was about 480 sq ft of tile installation. I used 7$ a sq ft for the tile allowance. Two new custom glass shower doors were included at an allowance of $4000 installed. With demo, two full showers and three floors I figured it would take me 5 weeks. the price I came up with was about $33500. One bathroom floor was about 100 sq ft the other two were 25 and 40. The customer said I was considerably out of her budget. I thought my spreadsheet I came up with worked fantastic and I think that the cost for remodeling three bathrooms that I came up with is reasonable. What do you think?
Category: General Contractor
Post By: ERIKA MCGEE (Troy, MI), 03/09/2018