Labor Pricing HELP

[Broccoli1]

Thanks Ed, don't live in Yuma but I'll go rut through the Avondale website and see what additional stuff I need.

I have no ideer why I thought you were in Yuma

[Sberry]

I am going to post these again. I imagine you are well read and these are easy from the best of the best. You can even get them on audio. Hard to keep these things in mind and perspective but we post the 22 laws in the office. Some ideas you cant beat up on. These days its really a world of spe******ts especially when you are a one man band.
http://search.barnesandnoble.com/Pos.../9780071373586
http://www.amazon.com/22-Immutable-L...f=cm_lmf_tit_5
http://www.amazon.com/Marketing-Warf...f=cm_lmf_tit_7
You need to read all 3, they are fast and not academic or statistical. Another one I am working on is the Service Profit Chain but it kind of backs up spread sheet data and is related to actual pricing and how it effects profit margins, etc.

[Sberry]

I read Marketing Warfare first (several times along the way), then Positioning and the 3rd is the boiled down version of the fundamental laws. (really very similar to political science in nature) A lot of it goes against the grain at first glance for a lot of people. My competitors in the berry business do not understand how it benefits them to raise their price. Even a bigger hurdle is my own family with 50 yrs experience doesn't grasp how being the price leader benefits us, they want to lower it to match the competition,,, why would I want to do that if I am in the lead? When we started we followed them, now they follow us and thats the place where industry leaders make the profits, changes the % of profit margins huge.
As a welder for example, lets take a pipeliner here, he built a reputation or service getting 25 an hour more than competitors, his costs are the same as a guy getting 100 but the 25 difference he can get double the profit, he has to work only one hr to make what it takes the next guy 2 to make, really lowers his cost huge, probably more like 3 times than double the profit %.
Say this, your rate is 75 per hr and your overhead is 65 so on a 4 hr job you make 40 in profit. Say you quote it at 75x4=300 and do it in 3 your overhead is 195, you make 105 Over 2 times the difference.

[SinGear]

Right is right?

Honesty is your best friend, a good contract is always a win / win. some times you will win a lot more than (you) think (you) could.

The times you take a bath doing a job(pay to do the work) are your BEST times to learn. Pay attention, figure out how it happened and put some process in place to prevent it.

TJ

I agree with you on this, f@ckin up is a great way to learn. But right is rightand so far I haven't done anything wrong, just becasue it didn't start the way you did doesn't make it wrong.

http://www.azleg.gov/ars/32/01121.htm
32-1121. Persons not required to be licensed; penalties
4. Any material man, manufacturer or retailer furnishing finished products, materials or articles of merchandise who does not install or attach such items or installs or attaches such items
So then if I’m reading this correctly, for the time being I am legit on the ROC because I have not installed any of the pieces I have fabricated so far. I don’t want this to come across as if I’m trying to find the loopholes I’m just trying to sort out where I stand so I know where I need to go.

[SinGear]

they want to lower it to match the competition,,, why would I want to do that if I am in the lead? When we started we followed them, now they follow us and thats the place where industry leaders make the profits, changes the % of profit margins huge.

Very true, in my opinion or thus far I have busted my a$$ in my career to show what I can do what I am capable of and my talents, but never focused in on the money, just getting what I needed to get by until I got to a point where I was a definate leader in my field and then the money came. Am I higher then the other guy, yes but it's the knowledge, talent and reputation that your paying for. (I'm not talking about welding) I stand out in my field, but I earned that respect.

Thanks for the input and I will deffinately take a look at those books.

[Broccoli1]

http://www.azcommerce.com/BusAsst/SmallBiz/SBS/Home.htm

Looks like a pretty good place to start.

[Broccoli1]

Fun, ain't it

[Broccoli1]

http://www.ci.avondale.az.us/FAQ.asp?TID=7

I think every city requires a Business License.

I would like to read more of the Requirements for the License that you linked to as I believe that is talking about a separate License that may or may not be required e.g. Contractor's License .

[SinGear]

[QUOTE=Broccoli1;160005I would like to read more of the Requirements for the License that you linked to as I believe that is talking about a separate License that may or may not be required e.g. Contractor's License .[/QUOTE]

Yeah Ed, the one I linked to was for the ROC, I'm still sorting through several pages to try and get a definate answer on the bussiness liscene, that or just about ready to say f@ck it and call my accountant.

[JTMcC]

I don't know what "free standing archetectural canopies" are exactly.

But in Arizona you can build them (or anything else) without a contractors license if you're not attaching them to a building.

If you fabricate a product and they pick it up or you deliver it, and they install it, you don't need a contractors license.

For example you can prefab steel stairways, haul them to the jobsite, get unloaded and leave without a license. If you build the stairway in place, or prefab it and then weld it into place, the roc will want you to have a contractors license.





There's a ton of info here:

http://www.azcommerce.com/BusAsst/SmallBiz/

Click on the checklist and they'll tell you everything you need to know.


JTMcC.