We don’t have to tell you that running a business is a huge commitment. Time away from friends and family, uncertainty about how you’re going to grow your business, and finding ways to get faster take its toll.
Tom Reber is the brains behind The Contractors Fight. Tom motivates and connects contractors to business resources that get them out of bad habits and into good money.
In episode 3, we talk about getting into the confidence it takes to be a successful business owner, pricing your jobs, how to make your customers feel taken care of, and more.
“And, contractors, on the flip side, they go into people’s homes, or they get on the phone with them or whatever, and have a pre-qualification conversation. And, they just cave, like they’re not in control. You know this craft. You know this trade, and this isn’t to say, “Go in there and be arrogant, be a jerk, and run your mouth the whole time.” But, it’s have a confidence that they called you because they have a need and a desire or a want. And, for some reason they think you could solve that problem.
“The fastest way to make money and to make your competition irrelevant is to get at least a 50% gross profit on all your work. What that means, you guys, is if it costs me 1,000 bucks in labor to pay my guys, subs, whoever, and it’s gonna cost 1,000 bucks in materials and another 1,000 and you know, rentals and permits, whatever. So, it’s costing me three grand. Okay, that’s what I get to pay to do Mrs. Jones’s project. I got to pay three grand. Double it. Do not charge less than six grand for the job that way. Let’s say everything goes perfect you spent exactly three grand. You have three grand left. That’s called gross profit. That’s what you have left to pay your salary, your overhead, your marketing, your trucks, and all that other stuff.”
A culture of customer care
“I mean, I go back to my paint company outside of Chicago. We’re doing hundreds of jobs a year. Our secret sauce, unfair advantage, was the way we would communicate with people… I had the best painters around. But, they came to work for us, because we treated them so great. And, we had a great reputation for the experience we gave, and the winners want to be part of that culture. Right?”
To find out more about Tom and how he can help your business whether you’re just starting out or are finally tired of working harder and not seeing progress, check out thecontractorfight.com.