You don’t get paid for the hour. You get paid for the value you bring to the hour.
Rule #22 – Charge Like a Business
The lady says, “You don’t charge for that do you? You just got here.” Sometimes our job only takes one to five minutes.
The builder standing there watching says, “That did not take long. Are you giving me a discounted price?”
Another lady says, “Wow! That was simple. I’ll bet you don’t charge the builder much do you?”
“It is a trip charge ma’am.”
“I am going to turn you in to the builder!”
A new contractor told me one time that they only charge $15-20/hour.
One thing all these people have in common is that they are thinking in terms of paying a labor charge.
Think about it. There is a great difference between paying a business for coming to your home and paying a day laborer you have hired to work. One is a business – and one is a laborer.
If an electrician comes to your house and all he has to do is change out a light bulb to fix the problem, you still pay his company’s minimum trip charge because he represents and works for a business.
Most businesses should have a minimum trip charge for work, inspections on site, or giving advice on site. For example, in contracting these trip charges may run from $95.00 to $150.00. The business charges the trip charge, and they pay the electrician or plumber by the hour for their labor, $15-25.00 per hour.
The expenses to run a business are much greater than the expenses of showing up to work as a laborer.
I have listed here some of the expenses a business has to pay for overhead.
Expenses for a business:
- Workman’s Comp Insurance
- Contractor’s Liability Insurance
- Local Licenses
- Truck Insurance
- Vehicle Maintenance
- Fax Machine/Printer/Copier
- Land Line for Phone
- Cell Phone
- Bookkeeping Software
- Other Types of Software
- Internet Access
- Office Space
- Office Equipment
- Office Supplies
- Tools and Equipment
- Website Design and Management
- Drive time to the job
Expenses for laborer:
So if you are just beginning the business of contracting and you have been a laborer for years, you have to change how you think. It may be a shock to your mind to now charge like a business instead of being paid for labor, but you can do it. Many other people have made the jump.
Since you are a business and not just a worker or laborer, you may need to dress like you own a business. Think like a business man or woman, and see yourself as one who owns a business.
You cannot charge $15-20 per hour, pay the list of expenses itemized above, then hand your spouse the change and expect them to pay all your personal household expenses. You will go broke.
If you are going to contract business, you have to charge like a business!
Proverbs 13:11 Wealth from get-rich-quick schemes quickly disappears;
wealth from hard work grows over time. New Living Translation
Successful people are simply those with successful habits. Brian Tracy