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Discussion Starter · #9 ·
We quote our work before we start. No matter how you slice it... if we are not covering our costs and making some extra to grow the business then there is no reason to be a business owner. Owning a business vs. owning a job.

I see you moved away from new construction. How is that going for you?
 

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We quote our work before we start. No matter how you slice it... if we are not covering our costs and making some extra to grow the business then there is no reason to be a business owner. Owning a business vs. owning a job.

I see you moved away from new construction. How is that going for you?
We stay busy. '08 was our last good yr. We have had to raise prices and incorperate some FR in with our T&M. We work a rural area that could not withstand a pure FR pricing. I have too use it on items and service that I can. Water heaters, fixtures, faucets.
 

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FR vs. T&M

I would personally love to be flat rate, but because I'm in a rural area and may drive up to 45 minutes to a call, can't see how it would work here. I do alot of repipes as in DWV and water lines and give a price on a per job basis. Some crawl spaces here have 14" or less, some have 3' of space to work.
 

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Discussion Starter · #15 ·
Well we need to upgrade the service department.... I have the utmost respect for anyone who turns a profit in the new construction world. That is done only with diligence and discipline. Service, run properly, is a more profitable hands down. But it is a challenge making it happen on all fronts. How do you do it?
 

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Discussion Starter · #18 ·
I would personally love to be flat rate, but because I'm in a rural area and may drive up to 45 minutes to a call, can't see how it would work here. I do alot of repipes as in DWV and water lines and give a price on a per job basis. Some crawl spaces here have 14" or less, some have 3' of space to work.
I have a lot to learn. However, one thing we do, is turn a profit. I am passionate about the financial part of the company. We have to bow to the profit and loss statement. I am setting a new QuickBooks File right now. We are editing our chart of accounts. I know that sounds terribly boring however, it is the backbone of getting the numbers correct. Do you use quickbooks?
 

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That's why I don't care when I lose a job or hear "you are just too high". Typically they are comparing apples to bananas and they don't know what it costs to run a business anyway. Arkansas does not require a service plumber to have insurance, but I do anyway. Code enforcement has a hard time tracking down unlicensed hacks, and they get away with working unlicensed. I keep stock on my truck and that costs me gas mileage, where as some have nothing but an empty pick up bed and run to get everything after they are there to see the job. This all costs the customer in a hidden way that they are unaware of, and I can't educate them all.
 

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I have a lot to learn. However, one thing we do, is turn a profit. I am passionate about the financial part of the company. We have to bow to the profit and loss statement. I am setting a new QuickBooks File right now. We are editing our chart of accounts. I know that sounds terribly boring however, it is the backbone of getting the numbers correct. Do you use quickbooks?
No, I just went on my own less than 2 months ago and am still learning, I don't have any accounting software. I just have a box of receipts and a 2 part ticket system. It doesn't bother me now, but will after the first of the year when the tax man cometh. :laughing:
 
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