What it costs to be in business.

[PLD 14]

I have spent most of my life working for others and got sick of being passed up for someone else who was better at kissing (bleep) than I was.

Ditto, I was one of the best damn IT people in the SE region and worked *very* hard to be #1. For the first 5 years, I climbed the ranks like a rocket. Each job changed neted a 50-100% increase in salary. Over the next 5 years, I started noticing that kids (many of whom I got started) were catching up to me and/or passing me in the ranks because they had better political skills than I. I deserved the promotion, but they could make the sale and close the deal. My last 5 years were miserable. I had status and money, but I was employed well below what my skill level and experience level merited. Even more depressing, I was not making any headway. I felt under utilized and unappreciated. I had grown to hate an industry that used to be an all consuming passion of mine.

My last day ended quite unceremoniously. I was working late (about 8pm), and decided that I was done. Not with the day, with this career. I called my wife and told her I needed to find another occupation. Much to my surprise, she said that if I felt that badly, I should make plans to do so. Having called my hand, I told her I would think about it over the next week and we could talk about it more. Over the next hour and a half of work, I realized that the I had decided to quit long ago. I was just too scared of change to actually jump. I typed up my 30 day notice and placed it on my bosses desk. For good measure, I placed another copy on the President's desk and locked up for the evening. It was a decision I would second guess many times that night. But there was no turning back now. Since I worked in a financial instituion, I could lock up for the night but only an executive could open up. As happened every morning, the President would arrive first and open up. And my notice was the only item on his desk...

Do I regret it? Sometimes. When business is booming, I am happier than ever. When business is off (like this summer), I have serious doubts about my ability to pull this off. Like Rod, I do not believe I can never go back. Once you have tasted the fruit, you cannot eat from the trough any longer. I guess if was obviously failing, and my family would suffer greatly, I would go back. But only to spare them the pain.

[RCBill 14]

Hello Brian,

We became acquainted 4-5 years ago through MAC. I am glad to see MAC is doing well, I'm sure you deserve a lot of credit for that.

So, I see that you've decided that costing should be your domain. I like your approach. I visited your site. Am I correct that you make your software available to subscribers for $199/yr?

A couple observations;

The importance of knowing costs isn't obvious.

Posting that you are a painter doesn't warm hearts here.

I am Bill Lightner, a former member of MAC. My website is mypainterwebsite.com.

[Jeff 232]

Ditto, I was one of the best damn IT people in the SE region and worked *very* hard to be #1. For the first 5 years, I climbed the ranks like a rocket. Each job changed neted a 50-100% increase in salary. Over the next 5 years, I started noticing that kids (many of whom I got started) were catching up to me and/or passing me in the ranks because they had better political skills than I. I deserved the promotion, but they could make the sale and close the deal. My last 5 years were miserable. I had status and money, but I was employed well below what my skill level and experience level merited. Even more depressing, I was not making any headway. I felt under utilized and unappreciated. I had grown to hate an industry that used to be an all consuming passion of mine.

My last day ended quite unceremoniously. I was working late (about 8pm), and decided that I was done. Not with the day, with this career. I called my wife and told her I needed to find another occupation. Much to my surprise, she said that if I felt that badly, I should make plans to do so. Having called my hand, I told her I would think about it over the next week and we could talk about it more. Over the next hour and a half of work, I realized that the I had decided to quit long ago. I was just too scared of change to actually jump. I typed up my 30 day notice and placed it on my bosses desk. For good measure, I placed another copy on the President's desk and locked up for the evening. It was a decision I would second guess many times that night. But there was no turning back now. Since I worked in a financial instituion, I could lock up for the night but only an executive could open up. As happened every morning, the President would arrive first and open up. And my notice was the only item on his desk...

Do I regret it? Sometimes. When business is booming, I am happier than ever. When business is off (like this summer), I have serious doubts about my ability to pull this off. Like Rod, I do not believe I can never go back. Once you have tasted the fruit, you cannot eat from the trough any longer. I guess if was obviously failing, and my family would suffer greatly, I would go back. But only to spare them the pain.

you deserve to work for yourself, hope work picks up soon. Use those brains and kck in some doors and tell them they need you>

[PLD 14]

you deserve to work for yourself, hope work picks up soon. Use those brains and kck in some doors and tell them they need you>

At it hard now. I need to come and spend a week just watching you sell/close. You are my PW hero!!

[Electro 14]

Bill,

I remember you. Nice to hear from you.

The first years subscription for smaller companies is $ 199. than $ 99.50 to renew each year.

As far as stating I'm a painter. I'm stuck with that title. If you remember me from MAC, you know I'm just the type that believes in sharing and helping orthers shorten the learning curve. I had great mentors before me.

Regarding the "The importance of knowing costs isn't obvious"

That's one of the issues that I have a hard time conveying to people. They think if they charge their daily rate and run a cash business, their ahead of the curve.

I try to stress to people, there's 3 things that make a business successful

Pricing

Production

Clientel

You can't have 1 without the othe 2. So I picked the first one for our software.

Price is like manners for some people. They both go out the door when things get tough. It's not easy sticking to your guns when you know your price is the right price for YOUR company.

Good luck with the rest of your season.

Brian

http://www.yourcostcenter.com

[Don M. 14]

Do I regret it? Sometimes. When business is booming, I am happier than ever. When business is off (like this summer), I have serious doubts about my ability to pull this off. Like Rod, I do not believe I can never go back. Once you have tasted the fruit, you cannot eat from the trough any longer. I guess if was obviously failing, and my family would suffer greatly, I would go back. But only to spare them the pain.

Phillip, I was in those same shoes. I was going to work and just going through the motions. I hated it. I turned my dept. around and asked for a raise and I was told I was one of the highest managers paid in the company and that I would never see a raise. They would always dangle the "bonus" in your face. I worked there long enough to see a bonus and it was 500 bucks. My boss knew what I did part time and I told him I could go out on a Sat and double this.

All and all, you have to be happy in life. I have been self employed for about a month and a half now, and yes I am getting ready to go through my first winter, but I would not change a thing. I love working for myself, and working on a company that began with a wal-mart machine and 25 feet of hose and to see where I am at know in just a year and four months is amazing. If at all possible I would never work for someone else ever again.

[McMoo 14]

Brian

I'm so new to the business, I still have the "do not remove under penalty of law" tag on my butt. I have researched the boards and talked with others I believe I,m priceing right for my area and my business. But get shot down every day with " your price is to high" I know this in common, I have been in sales for years ( R.V,'S , Hot Spa's) I know how to sell my product. I'm about to belive 1/2 a sandwich is better than no sandwich,and lower my prices to the point were I'm still makeing a profit, but not as much as the market should be. Advice Please!!! Hate to think of myself as a low baller!

But something has got to give. Thanks

P.S.

I've tryed the secret shopper thing by Phone, can't get prices over phone. Thinking of haveing someone help me by calling a local company and haveing them come out and give a quote. I hate to do this, I would cost them time and money. Mc

[Deck Guy 14]

Don,

If you ever get down here again...call me and we'll have coffee/lunch/dinner/whatever. If you have your wife along, I'll bring mine along too.

[Electro 14]

McMoo

Sometimes half the sandwich is okay, but which half, left/right top/bottom?

In any business, there is always room for low price/low quality, as well as the opposite. You want to be the one who can figure how to give the best quality at the best price. So, when you say you can get the work and still make a profit, are you sure your making a profit? What does profit mean to you?

Let's take this example:

Let's say to do a job it will take 8 hours.

You pay an employee $ 15.00 per hour

So your paying $ 120.00 to get the job done

Than add on insurance, taxes and holidays and your cost jumps to approx.

$ 164.00.

You could take the at $ 164.00 and slowly go out of business. Add company overhead and your at approx. $ 320.00. Take the job for that and you'll never go out of business, but you'll never have a rainy day fund, nor achieve anything more than a paycheck. So add on profit of let's say 15%. Now the selling price is $ 368.00.

So when you say you can take a job and still make a profit. Is that net free and clear above all expenses profit. Or somewhere in the middle?

Pricing and negotiating a job is an art and a science. If your a good salesman, you may have the art. Just make sure you also have the science.

Brian

http://www.yourcostcenter.com

[Jeff 232]

Brian

I'm so new to the business, I still have the "do not remove under penalty of law" tag on my butt. I have researched the boards and talked with others I believe I,m priceing right for my area and my business. But get shot down every day with " your price is to high" I know this in common, I have been in sales for years ( R.V,'S , Hot Spa's) I know how to sell my product. I'm about to belive 1/2 a sandwich is better than no sandwich,and lower my prices to the point were I'm still makeing a profit, but not as much as the market should be. Advice Please!!! Hate to think of myself as a low baller!

But something has got to give. Thanks

P.S.

I've tryed the secret shopper thing by Phone, can't get prices over phone. Thinking of haveing someone help me by calling a local company and haveing them come out and give a quote. I hate to do this, I would cost them time and money. Mc

Are you getting any jobs? Maybe your prices are to high. I don't know but they may be. Ask some of the other Florida guys on the board for pricing help

[Don M. 14]

Don,

If you ever get down here again...call me and we'll have coffee/lunch/dinner/whatever. If you have your wife along, I'll bring mine along too.

Larry,

Man, I was down there last week for a couple of days and almost looked you up, but I got busy on my rentals and other stuff the time flew by. It was my last trip to Cape before I become a Dad. The doc says my wife could probably go Sept. 1st.

I'll call you sometime and chat and see how things are going. I sent you a email from the other place.

Don

[Integrity Curb Appeal 64]

Great thread Rod...sorry to hear about you ankle, hope it gets well soon.

What does it cost to do business? I think it costs you, your life. If you want to be successful, you have to give it your all. I only actually work (clean hoods) about 20-30 hours/ week, but I'm always working. Everywhere I go, just about everything I do is work related somehow or another. It becomes a way of life when you own your own business. Sometimes, you just want to give it all up and say to heck with it...it's not worth the headaches, but when you've found something that you love to do, and you're good at it, and you can make good money doing it....your perspective changes. Don't get me wrong, if I had to go flip hamburgers to support my wife and daughter I would be the best flipper out there, but since I have been blessed enough to have the choice, I'm not going to let it slip through my fingers.

Well said Anthony...

[HotShot 34]

Thanks Scott....boy you up early...:D