by J. Jerrald Hayes | Apr 10, 2014 | 360 Difference Software, CABM, Markup & Pricing, Ω - Revised
Introduction Through out the web you’ll find blurbs from one of the best selling books on understanding markup for contractors saying: To succeed in a construction business, you have to price your jobs to cover all labor, material and overhead expenses, and make...
by J. Jerrald Hayes | Apr 9, 2014 | CABM, Markup & Pricing
Comparing the Traditional Volume Based Markup vs. a Capacity Based Markup Methodology (aka a PROOF/Indexed/Labor Allocated Markup Method) (Originally posted in February of 2004) I recently got up one morning and checking the Journal of Light Construction homepage I...
by J. Jerrald Hayes | Apr 8, 2014 | CABM, Markup & Pricing
As part of an online discussion/debate regarding the validity of a a Capacity Based Markup system (JLC-Why the PROOF System is Illogical – 12/11/2005 – here’s a preview about how I think,…No, its not.) Allan Edwards of Allan Edwards Builder;...
by J. Jerrald Hayes | Jul 7, 2011 | Books, Contracting 101, Markup & Pricing
Well it looks like Ellen Rohr’s two great books that I so often recommend , How Much Should I Charge? Pricing Basics For Making Money Doing What You Love and Where Did the Money Go?: Accounting Basics for the Business Owner Who Wants to Get Profitable, have...
by J. Jerrald Hayes | Oct 23, 2007 | Books, Contracting 101, Management, Markup & Pricing, The Little Lessons
Relative Income, It’s a great concept so what is so many of us don’t seem t get it. As I was working today I was re-reading The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich, by Timothy Ferris by listening to the audio book edition as I...
by J. Jerrald Hayes | Apr 18, 2007 | Books, Branding, Marketing, & Advertising, Markup & Pricing
There’s an interesting article in Reuben Swartz’s Dollars and Sense: The Pricing Blog entitled: Why Starbucks Coffee Is Cheap that presents a rational and explains that “if caffeine is what you want, and you want it in volume, Starbucks is your...
by J. Jerrald Hayes | Apr 5, 2007 | Management, Markup & Pricing
For a long time there a quote I like that I repeat over again from time to time that I’ve attributed to Jim Collins & Jerry Poras authors of Built to Last: Successful Habits of Visionary Companies. Profit is like oxygen, food, water, and blood for the body;...
by J. Jerrald Hayes | Mar 15, 2007 | Estimating, Markup & Pricing
Lets say an employer pays a carpenter a wage of $25 per hour. And then lets say he burdened rate (wage+Variable Overhead cost) brings the cost of that carpenter to $31.25. The contractor (using a Capacity Based Markup) then marks up that cost 2.12 (the median markup...
by J. Jerrald Hayes | May 4, 2006 | Markup & Pricing
Jim Kaslik one of my online friends and acquaintances from Fine Homebuilding Magazines BreakTime Forum (where I know him as Cloud Hidden) who designs homes as sculptural concrete forms (they’re more than just domes) posted a link in the BreakTime forums to a...
by J. Jerrald Hayes | Apr 5, 2006 | Markup & Pricing
I was down at our local coffee shop this Sunday morning and while sitting outside drinking my coffee I was reading through an old issue of CWB (Custom Woodworking Business) where I came across an article entitled “Pushing the Limits—Doing the unusual jobs ‘that...
