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Why Starbucks Coffee Is Cheap?

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...

Profit is like oxygen,…

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;...

The True Cost of Overtime, It’s Not What Most Contractors Think It Is.

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...
Pricing for ‘Perceived Value’

Pricing for ‘Perceived Value’

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...
How Much Net Profit Is Enough?

How Much Net Profit Is Enough?

I just recently re-read an article I had read a while back entitled How Much Profit Is Enough? by George Hedley of Hard Hat Presentations and it got me re-thinking on the concept of Net Profit. George Hedley Professional Speaker, Construction Business Speaker George...

A Simple Small Job Markup & Pricing Example

A couple of years ago in Fine HomeBuilding’s Breaktime Forum, a fellow wrote: “I live in houston and I am a trim carpenter. I do such a variety of things that I never have know the going price of some of the work that I do. I asked this same question here...

On Markup

Over the course of the last year and a half, I’ve grown increasingly perturbed reading a lot of the talk surrounding Markup and Profit in the Journal of Light Construction forum of that same name. Recently there was a question posted there by a fellow asking: I...