Pros and Cons of Mark-Up On Materials

If you were to charge just for your labor and materials, you?d be losing money. it'seems like an odd statement to make, but the mark-up on materials covers the things that aren?t included in your labor fee. it's an accounting measure designed to cover the overhead on materials, like the cost of gas to get to the store to pick up the materials or the cost of shipping to get them to you.

Material mark-ups also cover the business tasks that aren?t accounted for anywhere else, like sourcing materials, time spent choosing them, time spent transporting materials and the time doing other tasks that are necessary for your business but Don't pay outright: such as time spent advertising, sourcing new clients and doing paperwork for existing clients. Mark-up also helps provide a cushion should a job require the purchase of related materials that you didn?t include in your original estimate.

Room For Debate

Marking up your materials to cover overhead, operational costs and add to your profit can seem disingenuous. A customer might look at your itemized bill and wonder why They are being charged $150 for a garbage disposal they can pick up at a home improvement store for $90. When this happens, you risk losing the client?s respect and any business that might result from a recommendation by word of mouth.

You are left in an awkward position: You can explain the reason for the markup and hope they accept that answer or give a discount and possibly lose money. Either way, it's not a good situation.

One possible solution for this is to leave your itemization off your bill. Or, you could explain that the supplies you get are higher quality (as is often the case for those who buy from builder?s supply warehouses) than those you get from a national home improvement store. Mark-ups do, however, pay for your expertise in picking the right materials for the job and the labor required.

Charging a Service Fee Instead

Marking up materials and time is arguably the most common method of covering your overhead costs and adding to your profit margin. But it's not the only way of doing things. Instead of charging a mark-up, you could incorporate a flat service fee for every client you get.

Much like a doctor?s office charges you a fee just to get in the door and say hello, you could charge a fee just to come out to the client?s house or workplace. So your materials for a job to replace an exterior door (keeping the existing door) might cost $10 while your time per hour might cost $20. If it takes a half an hour to replace the door, that call would only net you $30.

Factoring in your overhead, which could include the cost of advertising, gas to get to and from the job site, insurance, time spent on submitting bids and doing paperwork, phone bills, Internet, clothing for the job, liability and bonding, worker?s comp insurance payments and everything else that it takes to stay in business (divided by how many jobs you expect to perform over the billing period) ? you may find it makes sense to add a service fee of $50, bringing the client?s total bill to $80 for a door replacement.

you'll average the same amount, if not more, than if you charged a mark-up on your materials and time ? you're simply accounting for it in a different way.

Math to Arrive at Your Mark Up

Whether you want to charge a flat service fee or mark up your materials and time, you'll need to have a good idea of what you need to cover with that money. Sit down and make a list of everything you do for your job, every second you're on the clock and doing something work-related that needs to be accounted for, including any supplies and equipment to do those things.

As a basic example, let?s say you maintain an active blog on the web as part of your business strategy.

You have to do the math and see how much of your electric bill goes toward supplying the juice to run your computer, modem and router to work on that blog.

You need to account for how much of your monthly internet bill is spent on updating the blog. You have to factor in hosting fees for your site and the fees for any professional freelance writers you hire to work on that blog.

you've also got to determine how much time you spend on that blog, and account for it accordingly. That?s just one example of hidden expenses that we Don't often think about when adding mark-up for time and materials.

Figure out the numbers you need to keep your business afloat for a year and the estimated amount you need to survive on for a year. Add these two together and you have the earnings goal you need to reach.

How you arrive there ? and deciding whether adding extra jobs, adjusting your mark-up or charging a service fee is the way to go ? is entirely up to you.

Learn to Recognize the Signs of Heat Illnesses

When your workers are outside sweating in the sweltering summer temperatures, you need to keep a close eye on them for any signs of heat illness. Heat illnesses can range from fairly minor to extremely serious or even fatal. Recognizing these problems is an important part of your job when you're supervising employees.

When you see evidence of heat illness, it's vital to step in quickly and deal with the problem before it gets out of hand. The following discusses the reasons for doing this, as well as the signs of heat illness.

Naturally, for purely ethical reasons, you should always want to ensure that your workers are safe and as comfortable as possible. But there are other reasons for being concerned as well. From an entirely practical standpoint, no business can afford to have its workers unwell or missing work because of heat illness.

If a worker is forced to leave the job site because of heat exhaustion or the more serious heat stroke, this can interfere with completing the job on time (particularly if this worker has a specific skill set vital to the completion of the job). Making sure that employees are not suffering heat illness and dealing with it quickly if they do is not only the right thing to do, it's a smart business decision.

Another reason you should be concerned about heat illness is the possibility of liability issues. Disregarding or not recognizing clear signs of heat illness could leave you open to a lawsuit'should serious illness, injury or death result.

In addition to ensuring that you provide plenty of water, rest periods and shaded areas, you can also protect yourself from legal consequences by keeping an eye out for any problems that may develop among your workers. Your insurer may also be concerned if you're not taking steps to protect your employees from the heat.

Whenever hot weather arrives on a job site, it's vital for you to understand just what heat-related illness signs and symptoms are and what you should do about it. There are four primary kinds of heat-related illness. Some cause only minor discomfort, but keep in mind that heatstroke can be fatal.

Heat illness symptoms can appear whenever an employee is exposed to extremely high temperatures for a prolonged period. Keep in mind that some workers may be affected faster and more seriously than others. For instance, heat can affect older workers faster than younger workers. However, anyone can suffer from heat illness. Keep an eye out for the following issues among your workers:

Heat Rash

Uncomfortable workers are slow workers, and someone with a rash is always uncomfortable. Heat rash usually looks like small bumps or blisters.

If you discover your workers are developing heat rash (something that is most common when it's both hot and humid), you'll want to address this immediately. Often, workers might develop a heat rash under their clothing because the clothing itself does not breathe properly to wick away moisture from the skin. Make sure your workers are provided with thin, all-cotton uniforms.

Heat Cramps

A more serious job site problem is heat cramps. If an employee is working strenuously in the heat, he or she could easily develop spasms in the abdominal, leg or arm muscles. These heat cramps are also associated with cool but sweaty skin. Beyond this (and increasing in seriousness) is a condition known as heat syncope, in which an individual might be overcome by the heat and faint. Like heat cramps, the person?s skin might seem cool, although their pulse might be rapid and weak.

Heat Exhaustion

Heat exhaustion is a similar problem. Signs of heat exhaustion are indicators that your worker?s body is overheating. Workers in a hot environment often experience heat exhaustion if measures aren?t taken to prevent it. Again, older workers (and those with high blood pressure) are more likely to experience this problem.

Symptoms of heat exhaustion include giddiness, weakness, thirst, profuse sweating and nausea. As with the above conditions, a heat exhaustion victim?s temperature will usually be normal. The pulse will be either normal or rapid, while the skin will be clammy and cold. Try to cool the victim and give them tepid ? not icy water.

Heatstroke

Far more serious than any of the other heat illnesses, heatstroke is a life-threatening condition that occurs when someone?s body no longer has the ability to manage its own temperature. Individuals who suffer heatstroke have a very high probability of dying, so it's absolutely essential that proper medical care be provided as soon as this problem occurs.

Remember, with the above heat illnesses the victim?s body temperature usually remains the same. But with heatstroke the victim?s body will shoot up to 104 degrees or more. Heatstroke symptoms can include fainting, rapid pulse, flushed skin that shows no sign of sweating, strange behavior and confusion. Heatstroke can also result in delirium or even coma.

Even though the symptoms of some of these conditions might be mild, it's a good idea to seek medical attention if things get serious. Particularly with heatstroke, it is absolutely essential to contact emergency personnel at once. Mere minutes can determine whether your employee lives or dies.

Impressing Potential Customers Starts in the Driveway

Quite often, the first impression a potential or new client has of you and your business comes from your work vehicle. What does yours say about you? If it's dirty, obviously in bad repair or literally falling apart, your first impression may be your last. A neat, clean work truck or van ? no matter how old it is ? will present you as organized, meticulous and capable, which reflects positively on your company and your brand.

When a homeowner consults with a contractor about working on his or her most important financial investment, the homeowner is going to look for indicators that you deserve trust. Pulling into their driveway in a neglected wreck immediately conveys the message that your professional standards may be as low as those on your personal side.

While few homeowners would view the condition of a business vehicle as the sole measure of a contractor?s capabilities, it can certainly put the contractor at a disadvantage right from the start. After all, the state of a company vehicle could be seen as a good indicator of how their home will look when the job is finished.

Creating a strong first impression with potential clients is Business 101 ? and that lesson includes maintaining a professional appearance at all times. Successful contractors understand that lost opportunities are expensive.

This isn?t to say that well-maintained or restored classics or antiques aren?t valuable marketing tools. Driving a unique company or personal vehicle when meeting clients can be a wonderful ice breaker, and can often establish the groundwork toward building a good working relationship.

Truck Basics: What is it really supposed to Accomplish?

You could say a truck (or several) is necessary in order to transport you and your crew to work, to haul your tools, materials and trailers. But why are you delivering yourself to work? Why are you bringing the tools and materials in the first place? To make money. These machines are business tools, designed to make contractors a profit.

On the other hand, you could pretend that a truck is only a business tool, but that would be ignoring the fact that your choice of truck ? and its condition ? says something about you ? to the public, to other contractors and to your clients. What message do you want to convey to these people?

The Problem

This arises when you either Don't care or Don't understand the reason for selective truck ownership and maintenance, so you drive something that doesn?t help you meet your business goals.

A truck makes you money by getting you, your equipment and your crew safely to your destination. This allows you to earn a good day?s pay. But maintaining a truck also costs you money, which takes back a portion of that paycheck.

Many contractors use their vehicles to advertise their company brand through the use of vehicle wraps, magnetic vinyl signs or customized paint jobs, but few to none would do so on a truck that?s basically a rolling eyesore. Since your business goal is to make a profit, you want to drive or buy a truck that will help you'realize that goal.

The Fix

If you do decide to use personal and company vehicles as marketing tools, practice a few of the following tips:

Keep your company logo smaller than the company name. Unless your logo is made up of letters distinct enough for someone to quickly identify and remember what your company does, emphasize your company name rather than some cute design.

If an observer notices your company information on a truck door but forgets the name, she or he might retain that information when looking through the Yellow Pages or on the Internet if your name is boldly emblazoned on the vehicle.

If you include a logo or graphic design, make sure the design reinforces your company name. For example, if your company name is Alligator Contracting Inc., a picture of a lion obviously won't help much.

The Looking Good Part

Hold yourself and your employees accountable when it comes to keeping your vehicles (and equipment) clean. You can?t spend too many quarters going through car washes to keep your vehicles and equipment cleaner than the competition. While many contracting jobs are literally dirty businesses, customers tend to have a higher regard for those contractors who still manage to project a clean image. Such an image does more than imply that you do quality work and clean up after your jobs.

No matter how sterling your professional reputation is in the industry, no matter how expert you are at your job or how clean you leave a job site, rolling into someone?s driveway in a truck or van with cracked or broken windows, a bed full of dirty tools and discarded coffee cups and a few old beaten up ladders strapped to its roof does little to instill confidence and trust in homeowners.

Your truck may be the biggest obstacle in your way to the top. When the condition of your truck is inversely proportional to your actual skills as a contractor, it's time to take stock and set things right. Your wallet will thank you.

All About Sandpaper

Imagine a slew of tiny saws and chisels, all working together to strip a surface of debris, old paint, and primer. Each tiny blade working with the next to get the job done. In essence, you've just imagined what a sheet of sandpaper looks like close-up in action.

Sandpaper is just one of the many cutting tools you have in your toolbox, though of course you wouldn?t want to try cutting anything with it ? instead, it's meant to refine and hone a project to perfection.

Of Grades, Grits, and Particles

Not all sandpaper is created equally. Commercial grade sandpaper is the most commonly available type of sandpaper. Commercial grade paper is the sort you'll find at your local hardware store and is typically good enough to handle most projects. Industrial-strength sandpaper is available only through supply houses and is of higher quality than commercial grade paper and can stand up to more rigorous tasks.

But what do the numbers mean? Sandpaper comes in a variety of strengths ? called grits ? generally ranging from 40 to 600. These grits are the measure of how many abrasive particles (think tiny saws) it takes to fill one square inch of the paper. The higher the grit, the more particles are present and the tinier they are, meaning a finer, more polished surface. The lower the grit, the fewer particles are necessary to fill one square inch of paper and the coarser the final product.

Working Through the Grits

A sanding job requires ?working through the grits? ? a term used to describe using increasingly finer sandpaper to smooth the surface of the project. 40-60 grit'sandpaper is considered coarse and is used to remove heavy-duty debris, like leftover paint. 80-120 grit'sandpaper smoothes the surface, removing obvious marks and imperfections. 150-180 is finer sandpaper and is typically used as a final pass before applying sealer or paint. 220-600 is very fine to super fine sandpaper and is typically used between coats of sealer or paint to remove dust flecks, coat imperfections, and as a final buff.

it's usually sufficient to stop at 150-180 grit'sandpaper, unless you're working with very soft woods or a water-based stain or paint. Softer woods, like pine, require finer grits to get a luster and sheen. Water-based stain or paint can pick up even the most minute scratches, dust particles, and imperfections, and thus require a finer grit'sandpaper to look their best.

Beyond the Grade and Grit: Particles

it's not all about grade and grit, though. The grit on sandpaper is also made from different types of particles.

Aluminum oxide, for example, is a common material and makes for a great all-purpose sandpaper. Aluminum oxide has self-renewing properties. When heat and friction are applied to the paper, the grits fragment. Because it is a friable material, aluminum oxide particles will break off to create newer, sharper grits, lengthening the time needed between switching sheets. This makes aluminum oxide suitable for use on wood, plastic, metal, and fiberglass.

Garnet, a natural abrasive, is not friable or self-renewing and wears out faster. Because of this, garnet isn?t suitable for all materials and it is typically reserved for final finishing work. Garnet also produces a finer finish than aluminum oxide of the same grit.

Other materials, such as silicon carbide and ceramic, are also used. These two are harder than garnet and aluminum oxide, but neither is friable and both are comparatively expensive.

While grit, material, and grade are the most obvious differences between sandpaper, manufacturers are increasingly coming up with new and useful types. By putting some thought into your sandpaper choices and use, you can improve the look of your finished project and greatly increase client satisfaction.

Your Emails Speak Volumes About You to Your Customers

The Internet is a wonderful tool for communicating with your customers. it's easily maneuvered and allows you to instantly interact with the public. While many people turn to social media to ask quick questions and receive quick answers, e-mail still plays a solid role in business interactions. More formal than social media interactions and better for topics that require more in-depth answers or a measure of privacy, how you handle e-mail interactions with your clients speaks volumes about you to your customers.

Answer E-mails in a Timely Manner

You Don't have to be plugged in 24/7 to maintain a good customer service presence with e-mail. Social media users expect an answer fairly instantaneously, but e-mail gives you the luxury of thinking about your words and crafting a courteous, thoughtful reply to a customer inquiry.

Dedicate some time out of your workday to check your business e-mail and respond to any letters. it's a good idea to answer e-mails as quickly as possible, especially if a customer has a time-sensitive question. For e-mails with no urgency or reply deadline attached to them, experts recommend waiting no longer than 24 hours to respond to a customer?s communications.

Subject Line and Recipients

Chances are your e-mail program crafts an automatic subject line for your responses, which might be a generic ?RE: (Subject line)?, but taking the time to customize a subject line that sums up the content of your customer?s email lets them know you'read their letter and are writing to address their concerns. This imparts a feeling of value for the customer ? not only did you take the time to read their e-mail, but you're showing them that you're taking their concerns seriously.

Additionally, it's a good practice to include your name or business name in the subject line. Not only does this lessen the chance that the customer might accidentally regard your letter as spam, but it'shows them that They are receiving a reply from a real person and not just a copy-and-pasted form letter sent to all customers who send an inquiry via e-mail.

Appropriate Structure and Content

E-mail lacks the non-verbal cues people rely on to infer tone during a conversation. Structure your e-mail as you would a business letter. Avoid colloquialisms, slang, text speak and emoticons. Use proper grammar, spelling and punctuation. Read your e-mail out loud to catch hidden mistakes before clicking the ?send? button and run the letter through a spell checker before replying to your customer. Contractions are okay, as long as your meaning is clear and unambiguous.

Avoid jokes, sarcasm and off-color content. Puns, which are an irresistible linguistic addiction for some, are off-limits in business e-mails. If you wouldn?t feel comfortable with your business loan officer or accountant reading what you've written, it isn?t appropriate to send to a customer.

Write Clearly and Concisely

Address concerns as clearly and concisely as possible. Don't use five words where one word will do, and keep it'simple. Address the customer?s concerns and answer questions. No one wants to spend more time than necessary reading their e-mail, so keep the message brief but informative.

There are situations when you can?t or shouldn?t answer a customer?s e-mail with reply e-mail: instead you call them. If the e-mail you'received was upset, urgent or detailed enough that reply e-mail couldn?t adequately express what you need to say, pick up the phone. This shows your clients that you take their needs seriously and that their issue was important enough to warrant speaking to a live person.

Closing your E-mail

Always close your e-mail by thanking your customer and providing a way to contact you. If you can?t figure out how to work a thanks and your contact information into your e-mail, consider something like the following example:

?Thank you for contacting Widgets Contracting. I hope my response has answered your questions. Please feel free to e-mail us at xyz@fidgetywidgets.com or call us at (555) 555-5555. Thanks again, John.?

While it'seems redundant to include your e-mail address at the close of an e-mail, when clearly the customer has already found your address and is responding to it, it's a good idea to include it in case they need to reference the e-mail later to find your contact information for a separate matter.

A Word on Signatures

Consider closing the e-mail with an automatically generated signature embedded by your e-mail provider. Avoid humor and quotes in your signature, opting instead for your business logo, contact information or anything else that reminds the e-mails recipient which company They are dealing with. Keep it brief, inoffensive and informative, just like the rest of your e-mail.

Points to Remember

Remember that your e-mail is a reflection of your business and your customer service skills. If your response is haphazard, slow or full of errors, clients might assume that your actual work is, too. Use proper spelling, grammar and sentence structure when writing e-mails to your customers.

Keep the content relevant to the customer?s inquiry and avoid humor that could be offensive or misconstrued.

Text speak, emotions and acronyms that are fine on social media or text messages aren?t appropriate for business e-mails. If reading your response would appall the Queen of England, edit it to be more professional.

Finally, respond quickly. Don't let more than a day pass between responses to your customers? e-mails. If a letter is urgent, full of emotion or requires a heavily detailed response, pick up a phone and call instead.

How you'respond to your e-mails influences client perceptions of your customer service skills, which impacts their impression of your business overall. Don't leave your reputation to chance, because word of mouth from a satisfied customer is invaluable to a contractor.