Painting Businesses think time and material is great. Time and Material-In a nutshell, don't do it. On first glance this seems like a win-win situation. Usually when there is a job that's difficult to estimate due to unknown factors contractors will fall back once again to T&M; because, they believe they are safe. They reason to themselves and the customer when they estimate they may be higher so it really is. And they tell the client that they may save, etc, etc.
Often enough you will find jobs like wallpaper removal, where it is impossible to learn how the paper was hung. Did the paperhanger size or prime the wall, or did the put the paper entirely on the cheap builder paint. Painting contractors who have been around in business good enough may have experienced this. The nicely sized wall with strippable paper might take only 2 hours; where in actuality the unprimed wall with extra paste might take 8 hours. And I don't like working for free, so all of us at one time or another think we struck gold once we "show up" with this specific idea.
As you work this plan of action you are able to and usually do make money. Sometimes you earn more income even charging the exact same rate, as you do when you estimate a job. This is a real eye opener, if you are charging the exact same rate each hour T&M, as you do to prepare your estimate. At the conclusion of the afternoon you wonder, could it be my estimate that's wrong, or are the painters slacking off?
A straight bigger eye opener is as soon as your customer agrees to T&M together with your hourly rate, and you go merrily along working. The end of the task occurs and you present the bill, and the client faints. After she wakes up she says no way did she envision that the small wall paper removal in her powder room would cost her $400. She's semi hysterical, and you say, "Mrs. Smith you were here, and you saw that individuals only took a tiny break at lunchtime and we didn't goof off, blah, blah. You're beginning to whine, and she's unmovable. She pops up with some figure that she'll settle on. By so you are going crazy yourself because her number means that you or among your employees will be making no money.
How achieved it make a mistake? You say. T&M is supposed to protect you. Instead you benefit alongside nothing.
The concept is fine and soon you perform a job that really takes far more time than expected, that will be exactly the cause of T&M. The client is all too pleased to take the T&M when it works in their favor; but, will protest until you give in. Saying, the wallpaper removal cost 2 times as much as painting the master bedroom.
What went wrong? You did. For whatever reason, be it deficiencies in historic job costs or laziness, or not enough faith in your estimating abilities, or that you wanted the work so bad that you knew you'd get it, if you didn't disclose what the T&M might soon add up to be. So often it is way better to walk away than lose.
The very best solution for the issue is to take a seat and complete a genuine estimate. And if it means going only a little greater than it could cost just to safeguard yourself, then do it. At this point the customer can either say yes or no. They know in advance, and won't be unpleasantly surprised by some really high number. Should they say no, then you can feel well about yourself knowing you are not giving your projects away. Ultimately the pressure is on the contractor, and the way in which around that is for you yourself to keep records on some of these jobs that were nightmares. Giving the client a company price is really is the only method, get yourself an offer you will stick to your estimate. And make that promise to the customer. Saying that, you'll never come for them and require more cash, and that the price is the word. Their eyebrows should go up once they discover a company that won't come whining for more money.
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