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Modern Craftsman

Midweek with Tyler: Stop Undercharging for Your Time

Modern Craftsman

Modern Craftsman

Reno, Self-improvement, Entrepreneurship, Education, Architect, Business, Projectmanager, Careers, Newconstruction, Homerenovation, Build, Interiordesigner, Carpentry, Construction, Builders

4.91.1K Ratings

🗓️ 9 March 2023

⏱️ 33 minutes

🧾️ Download transcript

Summary

Tyler runs the numbers this week to make sure the extra work you are putting into your business is fully reflected in your overall profit. There are many steps taken outside of what we deem as typical working hours to ensure a job is well done, and this must be included in your rates. Taking into account how your business is uniquely structured, this episode may help you realize the things you are undercharging for, and how to appropriately determine the cost for your time and effort.

The Modern Craftsman:

linktr.ee/moderncraftsmanpodcast

Find Our Host:

Tyler Grace

Podcast Produced By:

Motif Media

Music:

"Dessert" by Nate Gusakov

Transcript

Click on a timestamp to play from that location

0:00.0

I want to have a 40 hour work week, 40 of those hours cannot be on the job, but I need to get paid for 40 hours.

0:10.4

I need to be able to get paid for 40 hours a week, but that doesn't necessarily mean that I'm spending 40 hours on the job, so how do I charge for that?

0:20.0

Hey, what's up guys and girls? Back again with another recording of the midweek modern craftsman. I hope you guys are having a good week.

0:35.0

Yesterday was a Monday. I was tired. I don't know why I woke up tired. Sunday I woke up tired. Monday I woke up tired.

0:43.0

I guess a lot on my plate, a lot going on, feeling a little bit stressed with all of it, but just trying to remain present and understand that I'm going to get done what I can get done and what I can't get done.

0:57.0

That's just going to be the way it's going to be that, you know, there's more important things than stressing about what I can't get done and how much I can accomplish in a day.

1:10.0

So yesterday was a bit of a Monday, tough getting going, busy day, got a lot of stuff done. It was very productive, but mentally, definitely one of those days where I just, I felt like there was a lot ahead of me this week and not necessarily looking forward to the challenge so much, but I feel better today.

1:33.0

Tuesday, I record on Tuesdays. Tomorrow, I'll be Wednesday halfway through the week. I have my first Enduro race this weekend, the first one of this year. Hopefully the weather holds out looks like it's going to be nice.

1:46.0

So I'm racing that with a couple of buddies looking forward to that anxious about that apprehensive about that first race of the year.

1:54.0

But excited about it. So looking to get through this week into the weekend, get a get a ride on the bike quickly Saturday and then Sunday morning all day, I'll be out of the house early the race will be Sunday.

2:07.0

So we'll see how that goes. Feel good riding pretty good. I'm going to race on a different bike this year.

2:14.0

Maybe, well, it wasn't my intent, but I'm having some issues on my two stroke with power delivery and I just, I don't have 100% confidence in that bike right now. I don't feel myself on it.

2:27.0

So I'm riding my four stroke, which I feel good on. I may give up a little bit of time on it and some tight stuff give or take. I don't know. We'll see how it goes. It's hard to gauge. You feel fast. I feel fast on both of them.

2:42.0

So we'll see how that goes. But I'm excited for the week and excited to get racing season going, but on the business.

2:50.0

So this week, my blog post is going to be based around a conversation that I had with a nice guy named Andy, excuse me, down in Baltimore, Maryland.

3:04.0

I think I spoke with him last week. We were having a conversation. He's a small owner operator. He had a previous career and made a made a change and he's working for himself right now.

3:16.0

A lot of owner operator stuff small business is not looking to have a massive business. He likes the hands on aspect of working similar to what I'm doing now.

3:25.0

And I can tell that he is working a lot. And I was trying to determine how he's charging how he's determining his rates. And while having the conversation with him.

3:39.0

I realized that a lot of people, although a lot of people when they're bidding jobs early on or when they determine a rate, they're looking at overhead as far as excuse me.

3:54.0

My truck, your insurance is if you're renting a shop space, your tools, that the normal, obvious overheads that they can account for and they're not necessarily looking at the more nuanced overheads or what I, what I basically classify as inefficiencies within work when you're a small shop.

4:23.0

Even when you're looking to charge or budget for a employee, I think that there's costs within that overhead that people aren't aware of or don't account for and it's something that I did for a long time.

4:36.0

So this is all going to come down for how you want to account for this. If you want to put it on your labor rate, if it's an aspect of a markup on an employee, a markup on yourself, if it's just broken out as an overhead fee, you have to figure that out.

...

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