# Pricing question: apologies



## handywoman (Aug 22, 2010)

Thank you for directing me to the right site for information regarding pricing. Before signing up for contractortalk.com; I read a post regarding pricing so I didn't think that pricing questions were "frowned upon"-- I apologize. 

To the person that asked if I had done it before; the answer is YES but in a different state and I was trying to get a feel for the market in Los Angeles, CA just so that I can adjust my overhead cost accordingly without compromising the quality of the craftmanship.

Maybe my user name threw you off and made you take me less serious.

Again, thank you for your assistance.


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## ewingpainting (Jun 2, 2008)

Why would ones answer effect your overhead? OH differs which is why it is impossible to answer the charging question. My OH is way more than the painter that lives 2 blocks from me. Because we have different markets. So even though we are in the same state it still veries


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## JWilliams (Nov 11, 2008)

its alright, you know better now... :thumbsup:


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## JumboJack (Aug 14, 2007)

How do you "adjust your OH accordingly"?It is what it is.....


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## handywoman (Aug 22, 2010)

I get that asking a pricing question is not acceptable and my apology is sincere.


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## ewingpainting (Jun 2, 2008)

Apology is sincerely accepted. :thumbsup:


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## handywoman (Aug 22, 2010)

You have your labor cost + your material cost + overhead cost+ desired profit = estimate

You don't want to reduce your labor and your material cost because this may mean that the quality of work will also be reduced. I wouldn't want to do this because I want my service to be superior. However, within your overhead cost; you may have items that you may live without. For example: advertising, trade memberships, conferences, etc. If possible, you may want to reduce your profit margin slightly just so that your pricing is competitive and at the same time offer superior quality work.

This is where I was going with my original inquiry.


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## ewingpainting (Jun 2, 2008)

However my concerns are genuine. If you don't know your OH or what OH is, I suggest you learn it quick.


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## Proby (Aug 22, 2010)

JumboJack said:


> How do you "adjust your OH accordingly"?It is what it is.....


Renting a shop, buying a shop, getting a bigger shop, selling the shop, moving to a smaller shop, getting another truck, selling a truck, getting a different type of truck, increasing advertising, decreasing advertising, hiring employees, laying off employees, giving bonuses, taking away vacation days, increasing salaries, decreasing benefits, buying tools, selling tools, leasing tools, making tools, decreasing inventory, continued in morning.


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## ewingpainting (Jun 2, 2008)

handywoman said:


> You have your labor cost + your material cost + overhead cost+ desired profit = estimate
> 
> You don't want to reduce your labor and your material cost because this may mean that the quality of work will also be reduced. I wouldn't want to do this because I want my service to be superior. However, within your overhead cost; you may have items that you may live without. For example: advertising, trade memberships, conferences, etc. If possible, you may want to reduce your profit margin slightly just so that your pricing is competitive and at the same time offer superior quality work.
> 
> This is where I was going with my original inquiry.


I still don't get where you were going. Sound from the above post you know better that every one can differ. Unless you are asking what your competitors oh is. To see if you have room to attend your next conference.


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## JumboJack (Aug 14, 2007)

Proby said:


> Renting a shop, buying a shop, getting a bigger shop, selling the shop, moving to a smaller shop, getting another truck, selling a truck, getting a different type of truck, increasing advertising, decreasing advertising, hiring employees, laying off employees, giving bonuses, taking away vacation days, increasing salaries, decreasing benefits, buying tools, selling tools, leasing tools, making tools, decreasing inventory, continued in morning.


Yes but you don't adjust your overhead to try and get the right number for an estimate...


This is the OP's first post....
"Hi
I live in the Los Angeles area and was asked for a quote to drywall and plaster (ready for paint) two rooms that are approximately 8X12. ceiling also need to be drywalled.Any ideas what is the market rate in this area?"

Market rate?Really?


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## handywoman (Aug 22, 2010)

what makes you think I don't know what overhead is? 

Overhead cost is not fixed, you can adjust it however you need to keep your business running.


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## JumboJack (Aug 14, 2007)

handywoman said:


> what makes you think I don't know what overhead is?
> 
> Overhead cost is not fixed, you can adjust it however you need to keep your business running.


That is true...But how are you going to adjust it to come up with the number to do two rooms of hang,mud and tape?


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## handywoman (Aug 22, 2010)

yes market rate... a per sheet rate, square foot rate, etc. I was not trying to find out what the competition charges so that I can bid lower. I understand that a client will not hire you based on you being the lowest bidder. I know what the rate is in Washington DC but I know things are different here in Southern California.

I think I just went to the wrong forum; I just signed up for this website tonight after a long day.


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## ewingpainting (Jun 2, 2008)

JumboJack said:


> That is true...But how are you going to adjust it to come up with the number to do two rooms of hang,mud and tape?


Exactly. 

If you know your OH you don't need to ask the question. Even the it wouldn't very that much from one handy person to the next. Unless one handy person had their lic. Which means if handy woman doesn't have her lic she would only be able to charge 500 bucks according to state law. And her OH would be less. :blush: because she might not have the proper ins. If she doesn't have a contractors lic in calif.


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## JumboJack (Aug 14, 2007)

ewingpainting said:


> Exactly.
> 
> If you know your OH you don't need to ask the question. Even the it wouldn't very that much from one handy person to the next. Unless one handy person had their lic. Which means if handy woman doesn't have her lic she would only be able to *charge 500 bucks *according to state law. And her OH would be less. :yes: because she might not have the proper ins. If she doesn't have a contractors lic in calif.


You read my mind....:laughing:

One of my (many) peeves...Unlicensed handymen can only do jobs under 500.00 in Cali but I see them time and time again doing full on remodels and what not.


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## handywoman (Aug 22, 2010)

I think everyone is assuming a lot about "handywoman" because the user name is "handywoman" - no insurance, no license, no taxes, no workers comp, etc.


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## ewingpainting (Jun 2, 2008)

handywoman said:


> I think everyone is assuming a lot about "handywoman" because the user name is "handywoman" - no insurance, no license, no taxes, no workers comp, etc.




Well???


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## Proby (Aug 22, 2010)

handywoman said:


> I think everyone is assuming a lot about "handywoman" because the user name is "handywoman" - no insurance, no license, no taxes, no workers comp, etc.


It's odd to find business owners who pay taxes, workmen's comp, insurance, and are licensed who ask what the going rate is.


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## JumboJack (Aug 14, 2007)

handywoman said:


> I think everyone is assuming a lot about "handywoman" because the user name is "handywoman" - no insurance, no license, no taxes, no workers comp, etc.


If you do have a license I apologize...Your website lists no license number...
Are you a GC or a DW contractor?


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## handywoman (Aug 22, 2010)

neither. I worked for a G.C. for 3 years. I managed the finances and helped the estimator with the bidding (it was a small company) and there was a "going rate" [er sheet that drywall contractors charged; we used that for bidding purposes. I moved to the area a few months ago. I'm not trying to be a G.C. or a trade contractor; I know is a tough business and not easy or cheap to set up, I know all about licensing, insurance, lien releases, etc. Someone asked me the pricing question and I offered to find out. I have a cleaning business and from time to time I get a client that is looking for a contractor to do work to their house. Mostly bank owned properties so even if I was trying to run an illegitimate contracting business; I wouldn't be able to do it. And, the handyman work that I could do (my guys) is no more than changing a lock, replacing a broken tile and other small small things of that nature.

Like I stated before, I just went to the wrong forum. I wasn't trying to get everyone so worked up.

Good night everyone.


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## ewingpainting (Jun 2, 2008)

handywoman said:


> neither. I worked for a G.C. for 3 years. I managed the finances and helped the estimator with the bidding (it was a small company) and there was a "going rate" [er sheet that drywall contractors charged; we used that for bidding purposes. I moved to the area a few months ago. I'm not trying to be a G.C. or a trade contractor; I know is a tough business and not easy or cheap to set up, I know all about licensing, insurance, lien releases, etc. Someone asked me the pricing question and I offered to find out. I have a cleaning business and from time to time I get a client that is looking for a contractor to do work to their house. Mostly bank owned properties so even if I was trying to run an illegitimate contracting business; I wouldn't be able to do it. And, the handyman work that I could do (my guys) is no more than changing a lock, replacing a broken tile and other small things of that nature.
> 
> Like I stated before, I just went to the wrong forum. I wasn't trying to get everyone so worked up.
> 
> Good night everyone.


There you go, I've declined to do bids because of a handyman bidding a job. I watched a handyman install a complete wood floor system in a house down the street from me. It made me pizzed off every time I drove by his blue suburban. Knowing there is a legitimate licensed flooring contractor sitting at home. Because the Home Owner pick him due to price. I know that feeling cause it's happened to me. And that's a phucked up thing to do in this economy. Cause all you handyman's do is drive down the price. Making us look like were gouging the client when in fact you are the gouger. You do these jobs without the proper lic, wc, gl. While we do, and the prospect can't understand why we are so much more. You make want puke. It disgust me!!!!!


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## Framer53 (Feb 23, 2008)

ewingpainting said:


> There you go, I've declined to do bids because of a handyman bidding a job. I watched a handyman install a complete wood floor system in a house down the street from me. It made me pizzed off every time I drove by his blue suburban. Knowing there is a legitimate licensed flooring contractor sitting at home. Because the Home Owner pick him due to price. I know that feeling cause it's happened to me. And that's a phucked up thing to do in this economy. Cause all you handyman's do is drive down the price. Making us look like were gouging the client when in fact you are the gouger. You do these jobs without the proper lic, wc, gl. While we do, and the prospect can't understand why we are so much more. You make want puke. It disgust me!!!!!


I know your feeling about handypersons.

I have become one so now I am hated also?

Do handymen go overboard? Yep, they do things they shouldn't. The problem is handymen actually play a role in helping customers out, in fixing the small jobs that a regular contractor would not make money doing.

Now should they be licensed? That is a state specific question. Why be pissed off? If a handyman screws up, the customer will call someone else, hopefully someone qualified.

By the way, I do floors and am not licensed. Does this make it automatically that I will do a bad job?


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## Joasis (Mar 28, 2006)

OK, dial it down. 

It can be frustrating at the least, but everyone starts somewhere. Try to not be a hack in pricing is a great start. 


BTW guys, overhead has to be figured in, but if contractor A owns his shop, and contractor B rents his, A and B should still be charging the same...A simply shows more profit.


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## StevenJ (Aug 8, 2010)

Some here are over the top. I would say they're a disgrace to this site. What makes anyone so pompous? Learn how to respect people before you attempt to give them advice.


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## JWilliams (Nov 11, 2008)

Wow I can see this thread going bad real quick.. Is this just going to turn into a p!ssing contest?


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## Joasis (Mar 28, 2006)

It is not, closed.


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