Q&A Forums

how does this busines work (HELP) Post New Topic | Post Reply

Author Comments
Eric Sparks
Posted: Apr 25, 2006 06:19 PM
how does this busines work (HELP)
i am considering getting in the business but i dont understand how the bidding is done and i have some basic questions.

what are the average charge and costs?

are the prices determined by the square foot and depth?

how does the math work to figure a bid?

i know that some companys charge by the lbs and how much coverage do get by the pound or 55 gal drum.

basicly teach me how you figure the deal and you determine profit.

thank you so much
Gerry Wagoner
Posted: Apr 27, 2006 08:48 AM
Some people figure their material cost and double it.

Some charge by machine stroke (stroke counter).

Just starting out, a person normally works a bit cheaper to appeal to potential customers. Don't do that very long. You need to make money to make the business worthwhile. We would be fools to work as hard as we do for little or no profit.

Most of us on here had to figure it out ourselves. Thus we are inherently hesitant to give someone all that we had to learn. However, I don't mind setting forth some basics. Where are you located?

gcw
Eric Sparks
Posted: Apr 27, 2006 01:58 PM
i am in kansas, i understand that alot of knowledge is only learned by expeirance and that has alot of value. just a quick question does any one have a opinion on what the best company is to start out with. openions welcome
Posted: Apr 29, 2006 06:54 AM
kansas,,,toto this doesnt look like kansas...

olger hit it on the head,,dont give it away..
dont let the "competition",, if any,, try to force you to work cheap..the costs of operating a business are real,,and are the same whether you low bid or if you are the high bid...
KNOW YOUR OPERATING EXPENSES and know them accurately...this aint a hobby,,and it is easy to end up upside down and you will never catch up...
rent,phone,dues,insurance,fluids,safety gear,equipment payments,parts,advertising,beer,alimony,child support,(threw those in for poops and giggles)work comp,TAXES,salary,profit(yes you better make a profit or your a fool to work this hard)savings for future growth(dont wanna stagnate do we?)labor,,,and on and on...
make a list for yourself,,ponder it,,,set it aside,,look at it later,,ponder again...ask someone in another industry to review your list..
sometimes we are blinded by the obvious..

material twice works..
material, labor, expenses and 15% works (markup can vary,,this is your "fudge factor")

i measure the house perimeter..i multipy by sidewall height,,i deduct for rough openings,,
i multiply by my sq ft price for the following
air seal 3/4-1", r-13,r-19 and so on...i bid box sills band joists top plates and truss heels at r19...any heights over 10 ft gets a little more of a charge,,scaffold time is slow as is the rigging and transport of...
coverage is best answered by your supplier..
as a general rule...
1/2 lb...~15K-18K per set...use 15K and the rest is fudge factor...
1.5 lb....~9K
1.9-2lb...~4K
2.5lb...~3.5K
and so on,,,by the nature of chemistry these figures are all the same by vendor to vendor...there is no magic formula out there,,,
foam is foam
foam good

find a vendor that you get along with,,has good experience in the area of foam application you are heading (dont expect much insulation tech support from a roofing supply company)
call a few of their customers and ask the same questions to them all,,record their answers, (no not tape,,write em down duh)and compare what they say,,

hope this helps,,,
time to go take on the day...
Eric Sparks
Posted: Apr 29, 2006 01:03 PM
foam dude thank you for the reply. i am no stranger to running a business my family own two large companys that i have work with for 15 years, if any of you have ever worked with family it doesnt always go so good. any opinions on what the best machine is graco or glas-tech, or what foam is the best to spray.

thanks sparky
Gerry Wagoner
Posted: Apr 29, 2006 11:20 PM
Hi Sparky.

I like Glascraft. Been using them since 1987. The P2 gun is just excellent.

Nothing wrong with Gusmer/Graco. The Gx-7 gun is a parts monster! AVOID.

Foam? There are many decent foams.
NCFI makes good foam. They also have great technical support.
UCSC is decent.
VFI makes great roofing foam
R Tite makes a good 1-pound waterblown (wall foam).

You might try to find a supplier with a warehouse nearby, it can save on shipping.

gcw
Timothy Sonney
Posted: Apr 30, 2006 01:55 AM
If you want the long and skinny of it, it all comes down to what SPF is worth in your general area.

What are the average charge and costs?
Average charge – what are the competitors charging?
Average cost… you talking just material or total job cost (salary, salary expense, fuel, insurance, rent etc)

Are the prices determined by the square foot and depth?
YES – price is determined by the square foot/board foot.

How does the math work to figure a bid?
This is a very large question, some might say that this is an easy question, but, a lot comes into this factor.
I. New Construction – easy to bid, and with experience, you will know what your over head is for this type of job.
II. Remodel – depending on the extent of the remodel (back to the studs, or just a few open walls) it is best to visit all potential jobs to give a HARD NUMBER quote.
III. Energy Saver – Customer calls and want more insulation in their attic – again, you have to visit the site to get an accurate quote.

If you have more questions, please visit my site (Referenced to the Left) and click on the LIVE CHAT.

BHI
Bay Harbor Insulation
Posted: May 07, 2006 01:56 AM
learn it ur self
Posted: May 14, 2006 06:57 AM
nice,,,very nice...
and helpful too...
Gerry Wagoner
Posted: May 14, 2006 12:42 PM
:)
Eric Sparks
Posted: May 16, 2006 02:19 PM
foam king that is the type of remark i would expect from my kids, thanks for the help.
william cole
Posted: Jul 08, 2006 09:12 AM
BHI my name is bill and i was just on your site. i really like the way your site is set up. i am down here on the ms. gulf coast right in the middle of where katrina went through. everything from the beach front 1 mile back is basically gone. that is the reason we got in the business. we figure once the clean up is done there will be at least 150,000 homes to be rebuilt. no telling how many to remodel. just wanted to tell you about how much i liked your site. thanks
Timothy Sonney
Posted: Jul 08, 2006 10:49 AM
GulfSouth - Thanks for the compliment. We have our own in house design department that does our site, brochures, mailers, business cards, etc. Teresa is the head of the department and she can be reached at Teresa@bayharborinsulation.com if you are looking for any design work.
Aaron Scurlock
Posted: Jul 10, 2006 04:22 PM
Very helpful, Foamking. I am glad there are other industries with willing participants that will help to perptuate a good solid reputation for, and help to keeping the bar high when a new fella askd for professional help.

This industry wont let go of any information...I see it as contributing to your own demise.

You need to login to reply to this topic. Please click here to login.