Your Contractor Pricing Guide | TCF808

Are you a contractor struggling to determine the best way to price your work? In this episode, Tom unveils your ultimate 2023 contractor pricing guide. Gain insights into various contractor pricing models and learn the advantages and disadvantages of each. Whether you're new to contracting or a seasoned pro, this episode has valuable tips to help you set your prices right.

Conversation Highlights:

[00:00] - Introduction: Your Contractor Pricing Guide
[01:38] - Fixed Price Contract: Pros and Cons
[04:11] - Unit Price Contract: Advantages and Disadvantages
[05:16] - Cost-Plus Contract: Understanding the Pros and Cons
[06:12] - Understanding Time and Material contracts
[07:00] - Tom's Preferred Contractor Pricing Model
[07:32] - 50% Gross Profit Pricing Tool for Contractors

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Tom Reber is an entrepreneur, business coach, podcaster, leader of The Contractor Fight, creator of Contractor Fight TV and HGTV host. Tom's content has helped hundreds of thousands of home improvement contractors improve their lives and businesses.

The Contractor Fight is the ultimate resource for becoming an uncommon contractor!
Pick a fight with mediocrity. Live Unafraid.

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[godbluffvdgg]

As a general contractor in the Philly/NJ area for over 30 years; No two jobs are alike. No matter how careful your pricing is; you can lose your shirt when you're new to the business ( less than 5 years)...Here's a good rule of thumb for estimating; break each area into sections; know what the Square Ft cost is for the sub assemblies; DOUBLE IT. That's what today's market requires because between labor and materials; it's all a guess.

[andrometer]

In NH and MASS we don’t give the builders a price for drywall they tell us how much they can get border hoppers for and then We can price match or sit at home
The price hasn’t changed in this area since 1996
Still paying $10-$12 a sheet to hang
And $12-$14 to tape

[painttolife]

Love it. Thanks Tom. Solid breakdown of different options to use in different scenarios for customers

[Luke-fpks]

Thanks! I have a question about subcontractors and the 50% gross profit, does the 50% cover things like drywall repair for my electrician or is that something I should add on?

[johnnymckissick]

Direct cost times 2 is the same thing as charging 50% of total job cost, no?