192: How To Mark Up Your Jobs The Right Way with Michael Stone

There are so many mistakes to be made in the area of markup and profit, and there are plenty of contractors out there making those mistakes--and those are the ones who can’t keep their businesses afloat. If your business isn’t as profitable as it needs to be, then you need to hear what Michael Stone has to say. He’s been with us in Episode 14 and Episode 66, and now he’s here to talk about the specifics that can keep you profitable. What you’ll hear in this episode: Michael’s background: almost 58 years in construction; wrote a book in 1997, and started doing     seminars     Michael’s premise has always     been to help contractors help take care of their families     Out of 1300 contractors who have attended Michael’s 2-day seminar since 2014, only 4 have gone out of business     Michael’s book, Markup & Profit, originally published in 1999     The 6 most common reasons a contractor’s business fails (from Episode 14):     Not charging enough for your work         Failure to use proper change work orders         Failure to use good, legal contracts         Having too many employees for the volume of work         Having an improper payment schedule         Having a lack of profitable sales     Why you shouldn’t give bids for jobs     90% of contractors go out of business because of not charging enough     The cold, hard facts: 32% of contracting businesses fail the first year, 57% don’t make it 2 years, and 74% fail by the end of their 3rd year     The difference in market-based and cost-based pricing     How to pay your employees top dollar because you charge top dollar     How to determine whether you’re using market-based pricing     Cost-based pricing means you don’t worry about competition, never adjust a price downward, never use     the word “free” in advertising, maintain the highest pay scale for ALL employees, work only on a fixed fee contract, and know when     to say NO.     Profit and overhead     The biggest myth in construction is that as your sales go up, you can cut your markup     Fixed overhead vs. variable overhead     How to calculate markup: Total sales divided by job costs equals markup     Markups that roofing contractors SHOULD be using     Why contractors feel guilty for charging more     Payment schedules and cash flow     The ratio of employees to dollar volume Connect with Michael! Find out about Michael’s courses, visit www.markupandprofit.com or call Michael at (360) 335-1100. Markup & Profit by Michael C. Stone Resources: Download My FREE 1-Page Business Plan Text Me @ (510) 612-1450 - Say Hi! I would love to hear your feedback, pros & cons! Get Diane’s Free Download A Tale Of 4 Companies **Please leave me a review on iTunes!** ~Please Share My Podcast With Other Contractors~ THE ROOFER SHOW SPONSOR INFO: Need Help Answering the Phone Or Online Chat? Use Ruby Receptionists!! Find Out How They Can Help Bring In Leads!! Click here and use the code Roofer50 for a special $50 discount! https://www.callruby.com/roofershow Or Call Ruby at (844) 326-7829 Check out the app!! My Listeners Get a 21-Day Money-Back Guarantee!