Basics.
Deck Builders need about $20,000 worth of tools, Liability Insurance, Business Licenses (in some areas), Workman’s comp, A decent vehicle and of course insurance on that vehicle, associated repairs and maintenance.
You need an office, likely an answering service; you need to pay to do bookkeeping and accounting. You need a lawyer on retainer.
You need to do sales and marketing. You need flyers, letterhead, and business cards.
Deck builders require similar overhead expenses to any renovation company.
Here’s a hint. Union Carpenters make about $37/hour here in the Toronto Area. They get 10% vacation pay, dental and medical benefits. So, each man-hour costs the company about $45-50.00 per hour.
That means the company—to cover their overhead and make a small profit has to charge those guys out at $80+ per hour.
Will your rate be $35/ hour?
Are you only worth $12/hour after covering overhead?
Chinese Proverb: “He who works for free is always busy”.Don’t miss out on profitable jobs because you are too altruistic to turn away unprofitable work.
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