🔴 REPLAY: Why 50% Gross Profit is the Fastest Way to You Getting Out of the Financial Gutter

[@timchipps4087]

It F-ing worked. I literally watched half this video did an estimate and said what the hell and multiplied by 2. Client accepted!!

[@lionheart93]

damn how is going now?

[@DaileyWoodworks]

Thank you for this. I’ve been going through my price book and increasing my markup from 1.5 to 2.0. It’s scary but I’m tired of being busy and broke.

[@lionheart93]

ur broke with 1.5 or 2 times as much?

[@tonytnlvsn6659]

Well said, I started this method about 4 months ago. I agree with what you are saying, with higher prices we are able to deliver a quality project without having to rush and work numerous jobs at once. It’s time we stick together and raise our standers as contractors. Cheers from California.

[@richardrandall35]

Still working?

[@kevinmruel5528]

AMEN Brother STAND TOGETHER from NH

[@chrisspicer2206]

Standing strong in ND. 50% or nothing.

[@jorgecortez7742]

Amen and Oohrah! Semper Fidelis brother. You're speaking to our hearts. I love all your content. Been watching all your videos and they're amazing. Thank you

[@kurda164]

It´s fantastic Greetings from Sweden.

[@drywallkingz8418]

been in business for about 6 months now and i don't start my day without looking at a video. Thanks for the info brother.

[@contractorfighttv]

Glad to help

[@chrisspicer2206]

I've been running my remodeling business and working a job that is 8 on and 6 off schedule. I have a crew that works consistently weather I'm on the site or working my other job. I'm quiting my job and going full-time on my business. 5years in business and the last two years I have been watching these videos. These videos have helped me so much. I Watch and listen to Tom all day. I can't thank you enough for your videos, advise and insight. You rock brother.

[@edwardrutherford5855]

Mr. Ed's Plumbing & Rooter Service here from Stockton California. Love the Channel!!!

[@fee3818]

Greetings

[@PaulBC1981]

Brilliant video, the sales process has a massive part to play when pricing at 50%

[@terrancedavis338]

You don't know how much I needed this talk. I run a mobile welding company and was so hesitant about charging 50%. Thanks for the pep talk!!

[@michaelphillips8155]

I love this guy !!!! Amen bro. People don’t know how it is until there in your shoes.

[@paulp5066]

Sir this is the best video ever 50% is great. I started this last week and it’s helped me breath and fight again.

[@contractorfighttv]

Great to hear that Pablo!

[@kevinmruel5528]

AMEN Brother

[@teambco5097]

I love this guy!!!! AMEN! 50% gp is the way to go!!!! I didn’t think it was possible to run that for roofing jobs. But it is! And it helps me focus more on the job and customer at hand!

[@MarcM143]

So if as a GC my roofer gives me a price of 80k for a roof I should price it out around 160k? Dang I'm about to be making 40k per week

[@caylondavis6450]

good advise,you confirmed everything I was thinking

[@contractorfighttv]

That's great Caylon!

[@gerardoespinoza1205]

Thank you for taking the time to make this videos, I appreciate all your advices and your knowledge, I been working on some of those tips, and every single time it’s been paying off, my company it’s getting better, I feel more confident and I been saving a lots of hours by prequalifying customers, right now I’m working on branding my company, marketing on Facebook and raising my prices. Thanks again

[@livinlarge8728]

You opened my eyes to get into contracting...thanks brotha!

[@juanpantoja6165]

Great videos!!!! I love them. I been doing the 50% and it works,. General Contractors some times they cried about.but my work values. Thank you !!!!!

[@contractorfighttv]

That is awesome Juan! Thanks for being part of The Fight

[@paulcuenca5954]

out of Yuma, Az. painting contractor. I do the 50% gross profit or more. business is great. awesome way of explaining how to attack the industry like a boss!

[@contractorfighttv]

Thanks for watching Paul..

[@CenterStone.financial]

keep it up man! Great content! you are absolutely right

[@contractorfighttv]

Appreciate it Lance!

[@sonjaread7179]

We are way in Texas . Your so right. We are 3 years in and thought 20% was enough. It’s so not. Your spot on. We are GC home build and remodelers

[@contractorfighttv]

Welcome Sonja.

[@brianmorris180]

How can you not love this guy when he tells the home owner to suck it and tells us to charge more. He says I don’t know where that came from lol. Yes you do

[@contractorfighttv]

I sometimes get a little carried away....🤦🏼‍♂️ thanks for watching!

[@kingmiller300]

Real Shit Tom!

[@matthewcanfield6748]

Thank you so much! Your wisdom has shed clarity on some of my shortcomings. I will be putting more effort into marketing and investing.

[@eastcoastmuscle2578]

East coast Canada checking in 💪 I know. Im like 3 years late here lol

[@christybishop9122]

You trip me out! I love your videos! I work for a GC, Love your advice. You keep me tuned in!

[@MrJune1104]

Thank you Tom for a wake up call. I have had 2 painting companies, one in the 90's and I pretty much made what my helpers were making after all the estimates and bullshit. Another company starting in 2004 and lost that business due to the economy slowdown in 2008. I'm tired of the homeowners having the upper hand and determining my prices and not the other way around. My crew and I do really awesome work and I am definitely worth more than I'm charging. Thank you for picking my balls up off the floor and getting my business back on track. You rock Tom!!!

[@Berdecia]

I love your videos I such I had find them 8 years ago

[@contractorfighttv]

Welcome to the Fight Juan

[@Berdecia]

@@contractorfighttv thank you

[@Mrbee3482]

Man I got to tell you, you have open my mind so much, 👍

[@triforceconstruction3705]

Pie yow!!!!! Nailed it brother! Love your tangents on consumers. It’s so true!

[@sonjaread7179]

New on your show. Builders from Sa Antonio. You rock

[@legacyrydeshare3478]

Why has it taken me so long to find this channel?

[@jasongettum4054]

Amen Tom. Great video and great message.

[@jimmyhailwood1819]

"Fuck the tools" Hahaha this guy gets me laughing hard. He's a top top dude

[@brianmorris180]

Best video yet. Way to keep it real my man

[@contractorfighttv]

Gracias!

[@mikeodell5915]

We have exceeded the 50%

[@joshuaalba6178]

My name is Josh Alba out of Salem Oregon you have seriously change the way I've done business thank you go contacts fight

[@benbenavente1032]

ABSOLUTELY OUTSTANDING SIR!!!

[@roylandin8794]

I work on underground utilities but I have no idea how to set proposal and start my own company

[@contractorfighttv]

Join my private FB Group. Plenty of peeps there to help you. Thanks for watching!

[@saadiqshabazz8460]

Thanks a million for the information and motivational responses. I used to charge 0% gross profit. I was only earning the trade wages to pay myself and my helpers. I never considered business profits. Thanks a bill.

[@saadiqshabazz8460]

Billion

[@Coughtry]

I would intentionally over quote a job I didn't want to do, just to have the customer accept my rate. Now I'm stuck doing a job I don't want to do. It's funny how the world goes around.

[@robbrundrett7510]

You gotta tell my man. What that metal shit hanging on your wall. The trees awesome and I’m sure all the other shits awesome as well. Just curious and once I know I’ll be able to concentrate on you message. Which is great by the way. I learned a lot in the last 40 years of business but listening to you I realize there’s a whole lot more learn. I’m sure I should’ve used a comma I punctuated differently. I’ll get better.

[@willmart6397]

Stop insulting us dude, we love you 😆

[@paulp5066]

Lol loved calling home owners out

[@cliffordwise-el8704]

Clifford Wise National remodelers specialist can I get training

[@ricardodavalos9039]

Awesome TN hat 👋 Great advice thanks for the info!!👍

[@matthewcanfield6748]

Its crazy how I'm listening to your videos while working on a customers house. Someone you were interviewing mentioned pool removal. Next thing I know, they ask me for an estimate to remove this pool. I'm going to apply what I've been learning from you Tom. Let you know how it works out. BTW, can't wait for my damn cap to get hear! Thanks Tom, oh, and that "baby boy" shit I a really weird. Who says that?

[@richardrandall35]

So how did it go

[@brucekern7083]

It's true too because if you think about it, who has the greater incentive to be honest, the customer, who's just having maybe one project done, or the contractor, whose reputation for excellence is on the line? Obviously the contractor's need to build a reputation is likely to be most honest and acquiescent in this transaction.

[@brucekern7083]

Hey I have a question too. I'm pretty math savvy, but I defer to your experience of applied math here. Anyway, I always thought that 50% of 5 grand is 2500. For example, in order to add 50% to 5 grand, what I would do mathematically is multiply 5 grand by .5 and add that amount to the 5 grand. So 5000 × .5 = 2500 and 5000 + 2500 is 7500. Of course, the short cut way of doing that is to multiply 5000 by 1.5 and get the same number. I mean, I know you're saying that you should be able to walk away with 50% of the money after material and labor costs, but I guess I'm just asking for a little clarity on what profit actually is. Maybe this is just a little subjective quibble about the definition of profit, but the route to the math could use some clarity here, since if I was looking to add 50% profit onto material costs, if you hadn't said elsewhere to add 100%, I would have done the short cut that I said earlier, i.e., I would have multiplied the 5000 by 1.5 and only came up with 7500. From what you said there, however, I would be short changing myself. Idk, I think you should just take the time to really clarify that man. I know now what you mean but it would help for those who don't. The ultimate coefficient here is 2 instead of 1.5. The basic algorithm for estimates is then to take your overhead costs for the job, double that, and then divided by estimated hours to get your hourly charging rate, is that correct?

[@geertslandwaterscapes7930]

Great content Tom!!

[@contractorfighttv]

Thank you Geert. I appreciate it.

[@slapppp815]

I subscribed so goddamn fast after you said "fuck you" to the homeowner's watching.

[@gabrielerazo9283]

Amen!! 👏

[@llaferriere1010]

Amen. Brother

[@berkshirecarpenters8063]

You can charge any amount you want. Dont limit yourself to 50% gross. If you target the right customers who can pay that amount and see your confidence and your brand value.

[@allison447]

that's some funny stuff. That's a very good reverse psychology sales pitch for a trainer. I like that idea.

[@jamesrounds9234]

What if contracts at $56k or $60k on average?

[@JamesBrown-li3io]

Amazing info thanks.

[@contractorfighttv]

Thank you James.

[@michaelbacile8439]

I understand what your saying but for some reason I can’t make sense of it for my business. (Preface- most guys in my area like to get payed by the day not the hour). I’m a floor guy, demo and install services. I do not sell material, customers purchase material. 90% of my work is sold on a sqft basis unless it’s custom and takes loads of time. Say I do a 4 day job, 1000 sqft of hardwood at $3.00/ft and I had to demo tile first at $2.00/ft. I get payed 240/day helper gets 175/day. My cost to do the job is $1,660 labor and a 60$ dump fee. I’m at $1,720. The job brings in $5,000. There’s a $3,280 spread. Where do I tack on the 50%? Do I add the 50 to my 4 days of labor and dump fee and keep my sqft rate the same? Or am I selling the job at 50% across the board and just telling the customer I’m charging for my margin too when they ask.. because we all know they will lol

[@michaelbacile8439]

I forgot to add that, I know for a fact most guys who do square foot work will just bid the job on the sqft and that’s it. So we are paying ourselves and everything else to run the business out of that. I know that’s wrong. Where do we add any margin when the customer knows what you’re charging per/sqft?

[@lucianogutierrez7676]

Ripping yourself off. Stop charging by sq ft unless u wanna stay broke. Charge what you would pay yourself per hour. DOUBLE THAT. As well as employees hourly wages and dump fee. Now you got your price.

[@stonemanasw]

Great stuff!!!

[@contractorfighttv]

Thanks for watching

[@brandonwhite6337]

That stupid bitch that started that Angie's list bullshit,, should be hung in the times square...on national television...big fan of your channel...... Brandon from northwest Ga ....tired of getting fucked on my labor

[@emmanuelzermeno5618]

What's the name of his construction business

[@katmandoo7279]

Jason from Aberdeen Washington. I just started a construction company, ALCO CONSTRUCTION LLC. It is just my 21 yr old son and I. My first job is 75k for labor only... After watching your content, I realized how and where I fucked up on my first bid. Thank you for pumping out so much informative video and audio content.! Most people I meet keep their business model a close kept secret. You have given me a lot of knowledge, most importantly, your attitude and approach help me to find the motivation and energy needed to succeed. Thank you!!!

[@hermanboing8489]

I started my carpentry business about 7 months ago. I was busy at first and since the holidays work has fallen off. Lots of leads (tire kickers it seems). I'm sticking to my guns (your advice), but I won't lie, it's difficult not to work for cheaper. I do very good work (see my website if you want). I'm a bit frustrated right now; I'll admit.

[@PaulBC1981]

How are you getting on now mate? Keep to know.

[@hermanboing8489]

@@PaulBC1981 Hey Paul. Thanks for asking. I have found that most people do not want thing repaired/built properly. Rather they want things cheap. My opinion is that for this advice to work, one needs to concentrate on high-end work for "high-end" customers. This takes much more time to break into. In short, there are no short-cuts and expectations are prone to disappointment.

[@jayrobinson124]

My girlfriend owns her own HR consulting business and she had no employees and she charges $150.00 - $175.00 per and she's booked for at least a year at a time.

[@MrHendrix999]

I agree 100%

[@elizabethcanright9012]

is this just a comment of parr of live chat?

[@contractorfighttv]

Elizabeth, this is a live stream replay.

[@stanpladson3858]

Amen!

[@vallst6614]

What if I have a new construction to build which is over $500,000 cost to build, they way your saying I have to charge 1mil. That's huge difference compared to other contractors I know I will do good if i charge them 700k or most 800k but if I charge 1mil I will loose the job for sure!!! Does our suggestion still applies for big jobs like these?

[@saadiqshabazz8460]

I think 50% gross is your starting point. It can fluctuate or change to say 40% or 36%. I've been listening to this channel for a few months. I'm at about 30% now with future jobs closer to 50%

[@saadiqshabazz8460]

The best system I've seen and use so far as improving my business profits

[@brianmorris180]

No man. You have to charge per sq ft. Me as a remodel guy is a different story

[@tulasihanna]

Right on man!

[@albarths.r2817]

Another thing is accepting credit as payments? I usually accept checks or cash was never fan of taken credit as payments they do take 1 percent

[@TonysTopPicks]

We are GCs. How can we get that special sales training?

[@contractorfighttv]

Hi Anthony. Head to www.contractorsalesacademy.com

[@timchipps4087]

hell yeah!!

[@Dr4gonWarrior]

Does the 50% rule work for building a whole custom home? We live Hr west of Nashville Tennessee building custom homes and remodels for 40 yrs where the rates are lower so I'm wondering if the 50% rule would work even for our smaller remodel jobs. Ive watched alot of your great videos including not considering by the going rate which made sense as to why we can't get ahead (We actually are higher than many people here. Going rate here is to take 20% mark up on what the job cost versus your hundred percent mark up on what the job costs (a.k.a. same as the 50% rule). I'm just concerned that even though we have Plenty of people lining up for our work that huge of a jump to doubling the cost may keep us from getting work. I will gladly do what you said but I wasn't sure if the difference between the hills of Tennessee and Colorado Springs was too much. You crack me up dude lol. thanks for understanding so well exactly what its been like to get screwed by selfish homeowners its been a real tough several yrs cause of that. Can't figure out how to get them to even pay what they agreed on cause of too much angies list or hgtv ha!!. I think we may need to get 50% upfront or at least always stay money ahead. I guess times have changed. We've had over $50,000 in the last couple years not paid to us because we didn't get the money first or didn't wan't to take people to court.

[@Dr4gonWarrior]

Sorry I watched it again and realized you mentioned that the 50% rule is more for specialty contractors not as much when building a whole custom home. There's a 35% that you're referring to apply In non-metropolitan areas?

[@vallst6614]

I should come over from California, how does this process work?

[@adamhofstetter9312]

Fucking amen. Passing this on

[@contractorfighttv]

Thanks Adam!

[@wansfordpaul]

Thank you! had to pause where you said the truth about the consumers ripping us off Thank you! I needed to hear that said because it's happened to me over and over! I don't know what you're going on to talk about but I had to stop the video and just say thank you for saying that! I am so ready to listen to you now so I gotta un- pause it let's go!

[@contractorfighttv]

Good to hear Wansford. I hope you enjoyed the rest of the video?

[@aaronw9036]

Lol! I love the rant Tom! well said, home owners have screwed the industry

[@brucekern7083]

It might also be the excess of subpar, lowballing supply too, ya know, since the actual market rates necessarily include both the demand and supply varibles. Homeowners also have way too many contractors to choose from.

[@Schlumbucketreturns]

If you just focus on offering better value to clients, you will then have more potential clients than you have time for, and you can then raise your price without ripping people off. If you want to be paid like a professional, then you need to act like a professional and delivery real value for what you charge.

[@tilebyroman]

🔥🔥🔥🔥

[@TabuEntertainment]

Your the fucking best!!!

[@707c80]

if you're a contractor and you're not making the money you need to feed your family, then its 100% your fault. not the home owner, not the gc, its your fucking fault. take responsibility of your own fuckin company and command results and respect or move on to the next bid. be professional and charge a professional prices.

[@joewindiana2150]

I understand 50% gross. But in early part you say to double your cost and you suggest to double labor cost to attain 50% gross. Then later in video you give an example of a painting job. And in that example you suggest to doubling the cost of the paint and the labor. I try to get 50% gross on labor and usually do. But there is no way in the roofing business that I can buy $5000 in shingles and charge a customer $10,000.

[@modyceech]

I only do roofing at 50% profit it's an extremely fat industry... insurance companys even pay out 50% profit at going rate

[@modyceech]

If you can't make it at that make you're labour more efficient

[@modyceech]

One of my guys does 1.5 squares an hour tear off and lay down

[@mikeodell5915]

Ive pulled 1000 an hour

[@carllupica7148]

Handyman expectations here

[@jasongettum4054]

Tom, do you ever speak about not only the cost per man hour, but the burdened cost? I feel like most of us have no idea what that is, what that means and how much that burden costs. That can mean a huge difference between a lot of people depending on their insurance costs, etc. Its' apples and oranges in most cases when I see the cost folks are charging per hour in the comments.

[@jasongettum4054]

My bad, you did mention this. Do you explain it in further detail elsewhere though?

[@cruzcreation20]

16:28 ,just got real

[@contractorfighttv]

Is that when I lost my shit?

[@cruzcreation20]

@@contractorfighttv haha, not really, basically saying we forgot how to do simple math while 18yr olds are piloting submarines

[@navarich1]

haha, crappy lighting nice hint

[@mikeodell5915]

I don't ever justify my price.

[@707c80]

don't buy/rent a tool until you need it for a job. factor that cost into your job cost.

[@edwardrutherford5855]

Sound quality sucks!

[@carllupica7148]

From Ohio

[@markbunker8465]

A MEN!

[@paulp5066]

40.00 per hour wow cheap man