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Markup & Profit: A Contractor's Guide, Revisited, by Michael C Stone
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In order to succeed in a construction business, you have to be able to price your jobs to cover all labor, material and overhead expenses, and make a decent profit. But calculating markup is only part of the picture. If you're going to beat the odds and stay in business -- profitably, you also need to know how to write good contracts, manage your crews, work with subcontractors and collect on your work. This book covers the business basics of running a construction company, whether you're a general or specialty contractor working in remodeling, new construction or commercial work. The principles outlined here apply to all construction-related businesses. You'll find tried and tested formulas to guarantee profits, with step-by-step instructions and easy-to-follow examples to help you learn how to operate your business successfully. Includes a link to free downloads of blank forms and checklists used in this book.
- Sales Rank: #74554 in Books
- Brand: Brand: Craftsman Book Company
- Published on: 2012-04-01
- Original language: English
- Number of items: 1
- Dimensions: 10.80" h x .90" w x 8.30" l, 1.98 pounds
- Binding: Paperback
- 332 pages
- Used Book in Good Condition
Most helpful customer reviews
21 of 22 people found the following review helpful.
Excellent, professionally written book
By Amazon Customer
This is one of those "stand-alone" kind of books. As a roofing contractor ([...]), I have to know how to price my jobs. This book tells me.
I'm glad he recommended that as a roofing contractor, I should probably be marking up my actual job costs (labor + material) by 1.4. Actually, he tells you to look at a year's worth of overhead costs, and your desired salary on top, and then add 8% profit for running a business, and call that your new "overhead." Then, figure out what factor you need to multiply every job by (probably close to 1.4) to get that overhead. For remodelers, he recommends something closer to 1.57 to 1.67. Once you know your numbers, you know that you can't possibly be "too high." It's just simple math.
This book is simply excellently written. This guy is a math genius. He doesn't fall for easy-to-miss math errors, but spins out percent-markups, gross margins, net margins, etc., like it's child-play. He shows you needed differentiations between, say, adding 20% for markup and adding enough to have your markup be 20% of the total final price (two very different numbers that would be easily mistaken by many).
There are so many people telling contractors that "their price is too high" that it's thoroughly refreshing to hear a bit of good ol' common sense from someone. He breaks the math down and shows you that it's really just a mathematical fact that you HAVE to charge a certain price, or you won't be able to pay your bills or make a salary or anything else. Your business (like the vast majority of them do) will fail quickly otherwise.
The first day I got this book, I stayed up 4 hours (until about 2:00 AM) reading it because it was so filled with practical common sense tips.
Thanks, Michael, for a great read!
13 of 14 people found the following review helpful.
Great book for contractors!
By A. Miller
I recently started to work with a contractor who has been in business for himself for 17 years. My role is sales, marketing, website, working with clients on making design choices and pretty much anything I can do to help him improve efficiency and profitability. This book has been invaluable to assisting me in better understanding the business, how to price our services, writing better contracts, etc. Highly recommended!
12 of 13 people found the following review helpful.
Get it sold; get it built; get paid.
By Amazon Customer
Simply the best. I have been a general contractor for thirty years and still have much to learn about the business side of things. This book immediately started making me money.
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