Markup & Profit: A Contractor's Guide (Paperback)

~ (Author) "For years I've looked for a good book on how to establish markup for a construction company, or on how to deal with problems I've..." (more)
Key Phrases: projected job costs, new overhead expense, sliding scale markup, Stone Construction Services, Operating Capital Reserve Account, Field Yes Cost of Sales (more...)

Editorial Reviews

From the Author

I wrote this book after spending almost twenty years watching friends and acquaintances in the construction business work daylight to dusk, seven days a week and still go broke. Good, hardworking, honest to a fault, men and women who are the salt of the earth, that could not make a business work. As they went broke, their lives, their families came apart. It is a hard thing to do, watching your friends fail. I asked myself over and over, why? What are these people doing wrong? Why is it so difficult to survive in this business?

I set out to find the answer. My book thoroughly outlines the main reason that "contractors" go broke, and gives specific reasons. I then developed simple, easy to use principles and mathematical formulas to teach those in the construction business how to make a profit.

Lack of profit in almost all cases comes from not charging enough for the work that is done. In short, the Markup for the given company is too low. We turn that around by showing a time tested formula on how to develop the correct markup, and we have included a number of problems for the reader to assure their thorough understanding of the math and the principles involved.

We discuss other reasons for construction company business failures. This includes improper use of additional work orders, no Operating Capitol Reserve Account, and failure to make adjustments for unbudgeted expenses.

We also talk about related items. We cover contracts, proper number of employees, sales and a smattering of similar issues that are seldom addressed by other books in the industry.

This book took nearly three years to write. Prior to that, I did approximately 15 years of research. My book is easy to understand by non-accountants, and I know it will exceed your expectations.

Product Details

• Paperback: 316 pages
• Publisher: Craftsman Book Company (January 1999)
• Language: English
• ISBN-10: 1572180714
• ISBN-13: 978-1572180710
• Product Dimensions: 10.8 x 8.3 x 0.9 inches
• Shipping Weight: 2 pounds (View shipping rates and policies)
• Average Customer Review: 4.4 out of 5 stars  See all reviews (16 customer reviews)
• Amazon.com Sales Rank: #37,286 in Books (See Bestsellers in Books)

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Customer Reviews

Most Helpful Customer Reviews

31 of 31 people found the following review helpful:

5.0 out of 5 stars Five Stars! Really good profitability advise., January 1, 2003

By	cabby (Jacksonville, FL United States) - See all my reviews

Written by a contractor for contractors, this book provides very sound business advise for many who are considering starting various types of small businesses. Contractors must charge appropriately for their services. This book will tell current and future contractors how-to establish job costs and an appropriate markup rate to increase the opportunity for long-term success. In addition, the author provides very sound advise on business/customer service best practices. The advise on properly communicating the value of services provided is very good. Lot's of other great information and the CD-ROM has some good forms to get you started. I highly recommend this book to all small general and specialty contractors, and especially to all contractors who are having problems making ends meet.

40 of 43 people found the following review helpful:

5.0 out of 5 stars Very enlightening, March 31, 2000

By	A Contractor (CT) - See all my reviews

I found this book to be informative in the field of contracting. I changed my pricing method and found it to be fair to both customer and contractor. Everyone needs to make money to survive in this day and age and this book definitley helps. Thank you for Mr. Stone.

22 of 22 people found the following review helpful:

5.0 out of 5 stars Construction kevlar, June 15, 2006

By	R. Carkeek "riley" (las vegas) - See all my reviews (REAL NAME)

I have been a builder for over thirty years. During that time we learned how to master the quality aspects, scheduling, accounting, different volume levels and all the other things that can be thrown at a home builder. I have been able to provide a decent living for myself and a number of employees, however if I had known what I learned from this book and his newsletters I would be retired in Tahiti by now. Learning how to build is the easy part, learning how to make money is the hard part.
What Michael Stone does that is so different is he teaches you how to make a proper amount of money for your work. You learn how to do a great job for your clients and take great care of yourself at the same time, actually providing a better outcome for both of you. Although you will learn how to make money and make your business successful, he is never "slick" or "wall streetish". Just work hard, do a better job than the competition and run your company like a business rather than as a carpenter with a license.
I give this book to every young person I see starting up in the field. Over the years I have read most of the books out there and this is top of the list.