I have 3 profit levels.I get around 10 % going with the Best option out of the Good-Better-Best method.
Thats 10 % more than if I did not offer it.
Question to all guys who offer upgrades.....
Do you just add the cost of the upgraded price for the materials, or do you mark up each category selection a bit more than the previous lower end quality selection offered?
First you have to define what you mean by profit. Are we talking about gross profit or net profit?I was at a certainteed round table meeting yesterday and they suggested doubling your profit for the better and tripling for the best. That might be a little bit excessive, if I need to make $1k a day for 3 tabs(good), I don't need to make $2k a day 30 year architecturals(better).
I was just using the numbers above to explain my increased profit margins on the good-better-best theory.
Did the 5 star help because they wanted better coverage or was it the literature that helped?Jack
I disagree with you about SureStart Plus. I'm 100% sure that it has help me close some sales.
Does your formula for gross profit factor in "rain days". I would guess we get about 200 days per year with good weather.When I am talking about pricing jobs I am talking gross profit. Net profit is what I get to take home. I don't think of net profit in terms of %. I think of it only in terms of dollars and cents. I know how much it costs me per day to run my business, therefore I can always factor on that operating over head into a job. If the job took 2 days and we didn't hit enough gross profit to at least cover that number, there is no net profit.
I think there are better ways of doing it, which we discussed in your thread about mark up.I however do not add either gross nor net into a job as a line item. I use a % to markup labor and materials. I think double check the number and make sure the % is enough to cover the expected days to complete the job. I will then use which ever number is higher to submit my bid.
365 days of overhead divided by 200 actual working days... so yes it does factor for rainy days. On average we have 225 working days per year. This is factored over 15 years in the business, where I took my former bosses numbers and kept rolling with them.Does your formula for gross profit factor in "rain days". I would guess we get about 200 days per year with good weather.
Correct me if I’m wrong but basing your prices on gross per day would require you to know how many days of good weather you are going to have per year.
I’ve kicked the idea around a few times of doing it your way but I think it might make my prices unrealistic.
I think there are better ways of doing it, which we discussed in your thread about mark up.
I attended the roundtable last week. Now I see its different than the PRAC.Grumpy,
How did you know what everybody's pricing was at the roundtable?
I have been to quite a few of the CT meetings and the subject of price was avoided like the plague.
CT requires the suppliers to stock Symphony. So far I don't know of anyone stocking it.I've sold quite a bit of Eco-star Majestic Slate. Certainteed has a new product called Symphony. IDK, look at some samples and decide which one you would put on your own roof.