The Paradigm Projects: Activity Based Pricing Seminar
How Much Should I Charge?
Activity Based Markup & Pricing for Builders Remodelers & Contractors
Back in the later 1980s I took a one day seminar sponsored by New England Builder Magazine (which later became The Journal of Light Construction) taught by the late Irv Chasen called How To Survive & Prosper in the Contracting Market in which I was introduced to the PROOF Pricing Methodology which a few years later I would see described in David Gertstel’s 1st edition of his classic book Running a Successful Construction Company as Capacity Based Markup. In the 35± years since then and numerous other seminars it remains the most important and most memorable training seminars I ever took in regards to running a building and remodeling company.
The History of Markup Methodologies in the Building & Remodeling Industries
So while spending some long days of waiting in doctors waiting rooms I decided to dig around and try and see exactly what this COPE stuff was so I listened to The Contracting Handbook: Michael Anschel of OA Design Build on the Cost of Project Execution (C.O.P.E.)...
What Can We Learn From This Chart?
What Can We Learn From Chart? In a discussion on FaceBook regarding markup my friend and collegue Dan Kolbert of Kolbert Builders in Portland ME wrote: “…the most predictable aspect of your volume is your own crew in the field, and your markup should be connected to...
Ruining Business For Your Entire Industry…
I found this great quote/meme via Luke Miller’s Tile Money Instagram feed… If you believe that people only choose your business because you are the cheapest then we have 2 problems… The first problem is you can’t afford to be in business and the second problem is that...Linking G&A Overhead Costs To The Sum Of Direct Job Costs, Or Gross Sales Volume Which Can Vary So Dramatically, Makes No Mathematical Sense.
From Chapter 38: The Six Most Common Methods for Pricing Jobs in How To Price Landscape & Irrigation Projects by James R. Huston: [— for reference’s sake the “OPPH method” or Overhead Profit Per Hour Method is J. R. Huston’s term for what David Gerstel and I...Not an April Fool’s Joke…Some Bitter Numbers To Consider
Consultant and educator George Hedley of Hard Hat Presentations cites some numbers that I think are sadly all too true… If you watch 95 out of 100 general contractors, builders or subcontractors, and follow their progress for 10 to 20 years, you’ll hear the same...
The Capacity Based Markup Workbook version 2.07
Lately, I’ve been working with a lot of contractors who have their own shop space or have other friends and colleagues who have just gone the root of setting up a shop space or have a storage yard somewhere so I made some modifications to the Capacity Based Markup...