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Plumbing Expert
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Mar 23, 2009, 04:33 PM
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Looking for some info from an old post
Can't remember if it was from plumbing, or heating and ac, but someone was asking if they got charged too much for a job. Then one of the pros gave a list of expenses that a contractor has. It was a long list, and was true but also had some humor to it. I really would like to find this post, if any of you guys remember it, please help me find it. Im sure this isn't the right place to ask this, but I know it was one of you regular pros that posted it. Have a good day guys.
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Eternal Plumber
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Mar 23, 2009, 04:46 PM
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It wasn't me Dad! I don't give prices. ( It makes me cry when I see how much plumbers get now days.) Cheers, Tom
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Plumbing Expert
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Mar 23, 2009, 06:09 PM
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Lol. Thanks for the reply. The poster didn't actually give a price(as I recall), he just put up a list of company expenses(no actuall dollar amounts).
It looked something like this, except much longer.
Building insurance
Company truck insurance,
Tool insurance
Life insurance
Donuts
Unemployment insurance
Shipping of parts
Land line telephone bills
Cell phone bills
Gas for company trucks
Bonuses for workers
Tool expense
New siding for company building.
Heating a cooling for company buildings
Plumbing repairs for company buildings
Repair of company trucks
Bail for employees
Microwave for employees
Beer fridge for employees(mostly for boss)
Secretarys
Etc, etc, etc
All the things that you don't see on the bill, but things that are very important to keep a business running. Some are required by government, some are just to keep employees happy so they can be more productive.
I just want to find this post because they gave so many true costs, and some silly ones(but still true) Whether we charge 50 an hour or one hundred and fifty an hour, there is a reason for it. What most people don't understand, is that the owner of the business isn't putting all of this money in his pocket, and (trust me) neither is the worker. Most of it goes right out the window for expenses to keep the business legal and safe.
Still hoping to find that original post. If you guys agree with me, please add some humor to this. If you don't agree, then you don't understand what your bosses really have to deal with on a day to day basis.
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Home Repair & Remodeling Expert
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Mar 23, 2009, 06:13 PM
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Check with Milo and Mark, I think one of them was outlining why a plumber charged what he did. Sent each a PM and I'll bet one replies affirmatively.
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Plumbing Expert
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Mar 23, 2009, 11:42 PM
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Not my post. But it could be Mark's...
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Plumbing Expert
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Mar 24, 2009, 05:05 PM
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Thanks guys, Marks looking into it. For some reason I had a thought today that it may have been HVAC1000. Ill hit him up and see what he has to say. Is anyone interested in seeing it when I find it?
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Plumbing Expert
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Mar 24, 2009, 05:15 PM
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Sure, post it...
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Plumbing Expert
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Mar 24, 2009, 06:12 PM
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Ok, I found it. I had to look through almost all of hvac's post. Here it is, and I think I could add a hundred or so other expenses, but ill let you guys do that. Keep them coming.
As to mark up or costs of business, keep in mind a quality contractor that will be there for you when you need him may have some or all of the following business expenses:
Not limited to;
401K
Coffee
Health Insurance
Holiday Pay
Office Benefits
Sick Pay
Uniforms
Vacation Pay
Air Conditioning Equipment Maintenance
Building Repairs
Cleaning Service
Electric Utilities
Facility Mortgage Payments
Furniture
Gas/Oil Bill
Landscaping
Office Rent
Parts Storage Racks
Security System
Shop Tools
Callbacks
Miscellaneous Hardware
Air Conditioning License
Answering Service
Bad Debt
Business Licenses
Cash Reserves
Certification Tests
Chamber of Commerce Dues
Collections
Company Picnic
Dealer Meetings
Employment Testing
Help Wanted Advertising
Interest Expense
Internet Access
Inventory
Inventory Shrinkage
Invoices
Legal Services
Liability Insurance
Management Training
Mobile Phone Charges
Mobile Phones
Office Training
Pagers
Property Insurance
Recycling
Subscriptions
Tax preparation
Technician Training
Trade Association Membership
Brochures
Charitable Contributions
Customer Satisfaction Surveys
Door Hangers
Home And Garden Shows
Magnets
Newsletter
Newspaper Advertising
Other Advertising
Outdoor Advertising
Patches
Radio Advertising
Sales Commissions
Warranties
Website
Yellow Pages
Youth Sports Team Sponsorships
Accounting
Calculators And Adding Machines
Computer System Maintenance
Computers
Copier
Copies
Fax Machine
Files And File Cabinets
Network
Office Supplies
Phone Bill
Phone System
Postage
Postal Equipment
Printing
Software
Stamps And Pads
Telephone Bill
Telephone Equipment
Training Equipment
Trash And Disposal
Water Bill
Call Taker
Dispatcher
Employee Incentives
Employee Pay
Management
Office Staff
Receptionist
Technician Pay
Federal Taxes
Local School Taxes
Local Taxes
Municipal Property Tax
Other property Taxes
Sales Tax
Social Security Taxes
State Taxes
Unemployment Insurance
Worker's Comp
Gasoline
Ladders
Radios
Tires
Tools
Truck Decals
Truck Depreciation
Truck Insurance
Truck Inventory
Truck Ladder Racks
Truck Maintenance
Truck Shelves
Trucks
Profit
Tool Insurance
Truck Plates
Life Insurance
Equipment Insurance
Warranty Expenses
Code updates
Other trade book updates
Permits
Dental / Vision Insurance
Equipment Consumables
Inventory Tax
Research & Development
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Senior Plumbing Expert
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Mar 25, 2009, 04:09 AM
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Don't forget, Employee "borrowing" or as I call it... STEALING! But we probably don't want to mention that... huh... :D
Tool loss and replacement, too! You can see I am feeling negative this morning... :p
Business cards.
I am sure I will think of others to add.
Good day all...
MARK
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New Member
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Mar 25, 2009, 08:49 AM
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Originally Posted by mygirlsdad77
As to mark up or costs of business, keep in mind a quality contractor that will be there for you when you need him may have some or all of the following business expenses:
Not limited to;
Profit
I knew I'd find it in there (line 13 from the bottom). Plumbers are outrageous. They always want to make a profit.
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Senior Plumbing Expert
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Mar 25, 2009, 01:38 PM
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You jealous Johnxlogue... a little plumber's envy going on over there... hmmm..?
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Plumbing Expert
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Mar 25, 2009, 03:34 PM
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Ohh yes the profit. The reason we do it day after day. The profit is what feeds our children, pays our home heating bills etc etc. The profit is the what's left over after paying all the other stuff. And it isn't as much af a profit as people would be lead to believe. This is my whole point with this, the profit is minimal. The rest of our hard earned cash goes to others.
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Eternal Plumber
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Mar 25, 2009, 04:03 PM
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Profit John! That's the name of the game. Can you really believe thatwe climb up on a roof and snake a sewer for the fun of it. Dad came up with a list of the expenses that a shop owner incurs. Let me give you one from a working plumber.
THE PLUMBERS CREED
COLD WATER'S ON THE RIGHT
SH-T WON'T RUN UP HILL
THE BOSS'S A SOMABIT-CH
PAYDAY'S ON FRIDAY
AND , NEVER,NEVER BITE YOUR NAILS AFTER YOU SNAKE A SEWER.
And now you know the rest of the story. Tom
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Plumbing Expert
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Mar 25, 2009, 04:35 PM
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Exactly right Tom. I'm still a working plumber, not quite sure if I still want to try the ownership thing after hearing the horror storys about it. That hourly paycheck is pretty nice when you look at all things involved.
PS, I kind of like the taste of my nails, kind of reminds me of how hard of a day I had.lol.
Being a plumber brings a whole new meaning to... smell my fingers.
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Home Repair & Remodeling Expert
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Mar 25, 2009, 06:12 PM
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Name a trade who does expect to make a profit?
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Plumbing Expert
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Mar 26, 2009, 04:00 PM
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Exactly. (im sure you meant doesnt).
I had a gas guy tell me that we should only charge from the time we get to a house till the time we leave. No travel time, to time getting parts, etc. He thought this was a great idea because that's what his gas company does.
I told him that his company was making money 24/7, 365 days a year from their gas sales. ( I guarnatee that there is a gas meter running somewhere at some point, most likely hundreds or thousands of them, year round, our meter stops running when we close the doors for the day, and stops frequently for call backs and such) We don't have the pleasure of making money when we are sleeping. He just couldn't grasp the concept of small business charges. He couldn't understand that his company is charging all the time, which covers his hourly rate, and then some. None of us have a twenty four hour guaranteed income(except for utility companys) So we have to charge travel time etc etc,(because the employees are still getting paid an hourly rate, so the money to pay them has to come from somewhere. Otherwise we would be out of business.
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Junior Member
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Mar 26, 2009, 06:53 PM
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Great post thanks for sharing.
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New Member
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Mar 26, 2009, 08:53 PM
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Originally Posted by massplumber2008
You jealous Johnxlogue....a little plumber's envy going on over there...hmmm...??
Of course my remark about profit was a joking way of reminding the reader that tradespeople are entitled to a profit on top of the cost of doing business. I'm sure all plumbers find that some customers try to negotiate the profit out of the estimate or bill.
I don't begrudge plumbers one penny.
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Ultra Member
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Mar 27, 2009, 06:40 AM
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Originally Posted by johnxlogue
Of course my remark about profit was a joking way of reminding the reader that tradespeople are entitled to a profit on top of the cost of doing business. I'm sure all plumbers find that some customers try to negotiate the profit out of the estimate or bill.
I don't begrudge plumbers one penny.
At the moment, I can point to a number of my peers who are forgoing profit altogether for the sake of keeping their employees employed and paid.
Personally, I think this sets a bad precedent; When things do finally pick up, these customers are going to expect the trend to continue.
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