This guy is ridiculously knowledgeable and presents everything clearly. And then he hits us with the Trailer Park Boys clip. This man is gold, solid gold. Thanks for the video!
im sitting here taking notes: "stop thinking about the value of what you provide in terms of what you would pay to receive it.its an irrelevant perspective. The value of what you provide is what other people are willing to pay. And its a hard thing to discover because your competition is not going to be anxious to share that with you but in general terms, if your not missing at least half your bids because of price. You’re Too low. "
I built up a reputation over three years of doing good work at low prices, woke up one day at how I was short changing myself and doubled my prices. I lost half my customers and was therefore making the same money for half the work. Result!
My dads been charging the same prices since 1999 literally. He is retiring n i am taking over. I pretty much just double what he says now. Esp right now i can triple it No advertising we been living decent for years
man you may just be in a stagnant market.. I use to do a lot of contracting around Dallas.. booming market but man ull run urself ragged.. ive since went back to welding.. residential work is just annoying dealing a majority of the customer. Everyones wanting something free and everything is over priced... I rather just deal with a company lol
An old boss and friend told me one day, "I'd rather do a hundred jobs a year and make good money than do five hundred jobs a year and make decent money."
All 5 of your advises are right on. I was retiring and I sold my practice to my project manager. I spent 2 years with him while he paid me part of our agreed upon price. I told him everything you have mentioned in this video over and over. That all went out the window when he was on his own. He eventually lost his contractors license and his corporation license because he didn't pay return client phone calls or pay his subcontractors in a timely manner. He managed to destroy a $750,000 a year, one man company in less than one year by not paying attention to the tenants you just spoke about. Keep up your informative videos, I enjoy listening to them. Pete Daly San Diego, Ca,
I quit my desk job in January of this year- I was so worn down from working in a corporate environment. I own a rental house so I know how to fix things and remodel, so I jumped right in. I had no idea how much my own self-respect had begun to suffer until I began working for myself and began to gain real confidence. Best career move I have EVER made and I won't be looking back.
'Get out of bed early, work hard, treat people how you would like to be treated and odds are you'll have a good life'..... Amen to that. I could not agree more. God bless from England
@@Adrian2140 what a strange person that sits at home and feels compelled to write stuff like that to a person you'll never meet. I hope life treats you better in future and you learn to grow up a bit. God bless you child.
The best advice I ever got about quoting came from a salty old cabinet maker... He said "If you are not embarrassed to say the number, it's not the correct number." He said you have to plan for the bad job, or the unplanned expenses.. otherwise the first hiccup you encounter, you are losing money...
Exactly! And you have to have that job pay for itself. Or have the capital to be able to float a job until payments are made. So many guys rely on deposits from the next job. That’s a problem, Especially when the economy slows and there isn’t a next job for a bit.
That is definitely where I bombed out. I do everything for myself, so I cannot see why other people would be willing to pay what I would need to charge at minimum. If you cannot ask for what you need to pay you cannot stay in business.
Contractor for 38 years here. My word of advice for anybody starting out. Buy 1,000 pencils, and 100 utility knifes and HIDE them under the seat of your truck. Tell nobody you've done this. You'll thank me later.
I am 52. My father was a GC and I have been building all my life. You remind me of the mentors of my early days that shaped me to be who I am today. Every one of your videos is a walk down memory lane when someone cared to teach the skills to be amazing! Thank you for sharing all that you do. I pray many young men and women find your chanel and apply your teaching!
Great video .I have a couple small points to add after being a custom home builder for 30 years .ALWAYS ALWAYS have a change order form in your possession or make sure you always document anything that varies from your original bid from your approved set of plans. It truly makes everybody process much more enjoyable,Contractor /Customer . And my second bit of advice is take good care of your body .Construction will flat wear a soul out .Good luck and enjoy the craftsmanship of this trade .
I can tell that this is the kind of guy that when having him as a boss, you clearly get 100% of the instructions he's giving you and how to execute them and what the expectation is, he expresses himself in such well structured sentences, and seems pretty calm, the kind of boss you hope to get on the jobsite.
I wish all bosses where like him, patient, kind, ( giving the apprentices therapy 90 percent t of the time) doing everything well as it can be, measurements and what not, not at all your typical slobobian contractor, breaking shit, doing g shitty work. It's really about what CLASS you want to serve. If you want to learn good work, you must not market to the survivors...
I've been a General Contractor for 30 years and All of these things are ABSOLUTELY 100 PERCENT TRUE. I had to figure out every single one of these things the hard way. 25 years to learn the information you just saw in this short video. I did every single one of the things described in this video especially on what not to do and the results are exactly as described! Once you figure all this out it can be a rewarding career. Most people including myself are just abt worn out by the time you figure all this out the hard way. If you disagree and think anything in this video will be different and not happen to you, you are sadly mistaken. 😁 Love all your videos guys. Keep up the good work.
I'm right behind you Mr. Smith. I'm going on 27 years as a GC. A solid 40 years in construction! Throughout these 27 years friends and family have been telling me I don't charge enough for the caliber of work I deliver. I finally started listening a while back and gave myself and my business a raise. I'm busier now than I've ever been!
Been in the construction trades for 10 years, thinking about getting my general contractor's license most likely. If the one thing I've learned in the business management and delivery of a project aspect. The biggest cheat, con artists is the one who delivers a cheap bid and cheap work and gets no satisfaction delivering an end product that will last the test of time. being cheap always costs more because sometimes it is cheaper to tear everything out start from scratch then just try to slap on a coat of paint.
Been in the trades. (mechanical contractor) for over 35 years and learned all the lessons in this video the hard way myself on a similar timeline. You hit all the nails right on the head brother! I was fortunate to be exposed to lesson #1 early from a wily old Air Conditioning man that I got my first job from. He would say, "I'm the most expensive guy in town and proud of it." Unfortunately, it took me quite a few years on my own to actually apply that lesson but it is so true. Strive to be the best in your field and don't be shy about charging a premium for it. It's hard at first but once you've EARNED the reputation, life gets much better.
Yup. Let me tell you ya do one job for cheap and you get 5 others that call and expect it cheap as well. That one was tough to fix. I still get anxious when it’s time to bill customers.
Then those people go out and still get more bids trying to find a mythical lower bid. They eventually find rookies or charlatans who will quote them even lower. Then mess it up. Then they want you to fix it. But still don't want to pay enough to get it done right!
@@Nphen so it's not just me? I priced a job once, set a start date and two days before the client called and said they were going to have to put it off due to some health issues. That night I got a call from a guy asking me all these questions about how I would do this,and how I would do that. Long story short I out two and two together and figured out it was the job I was supposed to start that got put off. This guy had priced it lower, and then called me wanting me to tell him how to do it, then had the balls to ask if he could borrow my tools to do it. I started to call the client and warn him, but I figured they were meant for each other.
One of my first customers told me this line of bull crap. Fortunately, he was setting off all kinds of other alarm bells and I never did a thing for him. Blocked him and told him to never contact me again. I was lucky, because my previous career had already taught me the lesson. I take a harder line with these people than Scott does. These people are thieves in my opinion. Taking advantage of your trust in their words.
Scott, this is one of your best videos. As a father of young carpenter, I find it's easy enough to learn the trade, but it's a lot harder to learn how to run a business. The advice in this video is great. Thank you. I will get my son to watch it.
Hi I learned ALMOST EVERY THING FROM MY FATHER , VINCENT PAYNE , THAT MAN COULD DO ANYTHING USING A SLIDE RULE, A PENCIL,& A SHOPPING BAG , THE REST I LEARNED FROM MY MISTAKES..ALWAYS DO YOUR BEST , ALWAYS SURROUND YOUR SELF WITH T H E BEST SUBCONTRACTORS, & ALWAYS KEEP YOUR WORD EVEN WITH THOSE THAT DON'T IF YOU ARE THE BEST NO THE BIGGEST YOU WILL SUCCEED, THOMAS PAYNE, MASTERBUILDERS.
Scott, I have to be honest. This video nearly brought me to tears of joy and gratefulness. I have been doing handyman work for about 2 years now full time. I have learned tremendously from your past videos, and have taken great pride in my work over the past 2 years. Now, my business is exploding. And I'm facing many of the issues that you mentioned here. I cannot thank you enough for sharing your wisdom, knowledge and experience with me. I know that you have over a million fans. But I don't know them. I can only speak for myself. You are a mentor and a hero to me. My best wishes to you and your loved ones for a very Happy Thanksgiving. Thank you again, sir.
Fuck yeah bud! Have a nice thanksgiving this year and next! Mentors are important, even if you only know them on youtube. I take EC, TOT, AvE, etc very seriously because I know they've made it. Self-actualization is compelling and positive, especially with a cool attitude to boot. Cheers!
I love listening to the gray haired guys. Everything in this video is right on. I can’t emphasize enough how accurate he is here. It is as accurate as any self-help help book I’ve ever read.
Iv been in carpentry/home renovation for about 10 years. Started working for myself this january and its the best decision i could have made. And i owe alot of thanks for my success to this man right here. I subscribed to this channel long ago and i regularly come back to rewatch videos just like this one. hearing your wisdom has made a better contractor out of me and honestly scott i could not thank you enough. God bless.
i love his tolerance to shaky behaviours, sorta like "dont do this or you will hurt yourself really bad. Here is how I do it tho if you want to watch.". This guy understands life and knows its not all rainbows. reminds me of my dad. i should call my dad
60 here, I have gotten 90 percent of what I’ve bid on. Fear of losing help because I didn’t have steady work is hard to overcome. The saying, a construction bid is a wild assed guess carried out to two decimal places is true at least in my case. Doing work for a stipulated sum is the scariest thing about being a general contractor. I have no nest egg, no retirement, and it doesn’t look good for the future, despite the fact we accomplished so much and had so many happy customers and referrals due to that. Good luck to everyone that does that.
Me too brother. 48 years. I finally started doing some work for a big company I knew pretty well, and when I saw what they were charging for the same work I do I realized why I went bankrupt before.
@@stevegiboney4493 I've been there. And something I have learned is that the guy who is getting about 40 or 50% of what he bids will make a great living and have plenty of expendable income, and can help take care of those key workers. Raise the prices. My Dad who was a successful contractor for years told me when I was a kid "Just when you start to think your gouging"
This is gospel to me. I’ve watched/listened to this several times. I really appreciate you taking the time to share your insight to this work, and as it applies to many other trades as well. Thank you!!
Such a nice wholesome approach on the trades It doesn’t apply towards drywall in NH and MASS Does not matter how fast or incredible of a job you do If anyone, and I mean anyone (no teeth no car no insurance ) approaches a builder with a low ball Offer that is now the going rate they all go off of Using this approach They have effectively kept the price the same as when I started in 1996 Yet they all charge the going rate for our work
I come for every video, only minimally for the "work" or "how to" content. Mostly I come for that voice and demeanor, and the simple integrity. and very often, as in this video.....I can't watch without tearing up. Scott.....Nate......keep up the GOOD work (that true underlying purpose of your efforts to share, always) Darrell
BAM!!! ^^^ What he said ^^^ I’m a retired machinist so why am I compelled to soak up the wisdom pouring out of these videos? Because it’s nice to see some still exists and is being shared.
Best thing I every heard was a customer quoted a competing bid price to my boss at the time he looked the gentleman dead in the eye and told him point blank you can take that price but I'll be at your place next year fixing his screw up and you'll have paid twice as much anyway. We started the job the next day.
This information is gold. The trick is getting young, prospective contractors to listen to it and take it to heart. Most contractors DON’T fail bcz they don’t know their craft. Most fail bcz they had no idea what really goes into running a business. Your craft and your business are two completely different things. When the owners or ‘license holders’ of the company I used to work for, would come by the site for a visit, I used to be anxious to take them around to see all the interesting things we were working on. I realized later that as we would do these site walks, it was really just them humoring me. They were most interested in sitting down and discussing schedule and budget and material costs and usage and all the boring stuff that tend to ultimately decide whether a job is a winner or a loser. The difference is, I was essentially a craftsman that loved producing good work. They were businessmen that loved to produce profitable good work. Both essential for success.
So true here. It really takes someone special who can 1, be a craftsman and learn your trade. 2, be a good businessman and run a business/ company. 3, be a good salesman and instill trust. 4, bidding projects , become proficient at quoting jobs. 5, establishing or having credit. 6, ability to collect and understand you have to get tough (lawyer up), if needed. 6, an understanding wife and family, sometimes it’s long committed days and nights, not everyone is understanding of the commitment needed. 7, good employees, these days it’s so hard to find anyone that wants to work a full day 5 days a week. 8, lastly a little luck goes a long way as well. One costly mistake or injury and it’s all gone. It’s not for everyone.
@@cpmiller1965 Very comprehensive list. Well said. I’m afraid, from that list, my biggest shortcoming would have to be salesmanship. What that will cost you is time. It’s going to take longer for people to get to know you and your abilities. And who has an over-abundance of time? It may also prevent you from branching out, beyond your familiar surroundings. Salesmanship can’t be overlooked.
The underbidding is so true. My boss under bids everything any constantly looses money. He also commits himself to a short finish time. This causes the employees to work in a rushed stressful environment because we have to go go go and get it done bc they didn’t charge enough.
So much earned wisdom in this video, thank you, Scott. I've been a GC here in downtown Tokyo for about 10 years now, before that I helped run my wife's family business for 20 years. I have to say I have learned all of those lessons, many the hard way but now I'm committed to do the best work I can, and if a client does not want to pay for the best work then I'm no interested in doing it. I always say to people: Good Fast Cheap... Pick two, you can usually see them thinking about it for a second or two. LOL Thanks for the work you and Nate do, this channel is a true blessing. Cheers from Tokyo. Stu
"Everything that attributes to the accomplishment of the work is part of the cost of the job" is one of your quotes. That is very important to remember.
As a 71 year young carpenter that recently retired my remodeling business that I started at age 23, I wish I would of heard this when I first started. As a 71 year young carpenter I learn something every day watching You Tube. All 5 things you stated are right on point. One thing I'd like to add is don't let your ego take a job that your not set up for or make a reasonable profit. Your #3 point about playing by the rules. I too late in my career accepted the fact to follow all the regulations no matter how ridiculous they seem. I too worked in Oregon but in Portland metro and primarily in Lake Oswego. It is beyond frustrating dealing with the building regulations and bureaucracy in this area. Common sense doesn't exist in this area. Thanks for making a fine informative video . I'm going to pass it on to a young remodeler just starting out.
This advice is golden it’s 100% accurate. I would add, it’s fine to have someone else do your books. However, make sure you understand what they’re doing, pay attention to the numbers and understand the story they’re telling. I started my own business 10 years ago. It’s hard and it’s scary. I made almost all the mistakes Scott talked about. By the way I opened an accounting practice not a construction business.
You know the old saying- "A penny for your thoughts?" Well I feel like we should each send this man a dollar for the wisdom he just sacrifised his own *valuable* time to provide us! It still wouldn't come close to what his words are worth (to me, at least) A simple "Thank you" just doesn't seem like enough! Wish I'd heard this 25yrs ago, or worked under a guy like this. What an example of how to live and be a good human... Oh, and a good contractor! This man is a national treasure and should be supported and protected at all cost! ♥️ Keep it up. Tell us more, sensei!
You are an invaluable resource sir, I cannot begin to thank you enough for leaving your legacy here freely. Even my own sons may hear your voice, see your face, and be better men for it.
I was in construction for over 40 years, now retired, just listening to this brought up so many memories that I started to have flashbacks of the pressure that comes with the responsibility of being in the business as a contractor. So happy I am retired lol. Great job sir!
Been in construction since 17 years old. I'm 46 now and have had two self-run design-build businesses over the last 20+ years, both "successful", one still operating. IMHO, 99% of the construction influencers out there are full of a generous amount of bulls**t and ultimately trying to sell you a product or brand - in fact, they're probably sponsored on the backend by a product or brand. If you're thinking about running your own construction company, this here may be the most important and genuine of any videos you could ever watch. Listen to this man. And, when you start your business, have three people on speed-dial: #1 your bookkeeper, #2 your lawyer, and #3 a yoga instuctor :) it's a marathon, prep yourself for it. Great video.
Every word a true word spoken with experience, especially No5. The last time I was told there was more work coming I boosted my price for the first job and told him I’d discount future work. Never got the first job... lucky escape I guess!
This is golden advice! You've shared a lot of this in your podcasts. So guys go check out the podcasts!! But this is the first time you've had it organized in an entire video. THANK YOU for sharing this priceless advice! It took you many years to figure this out and you've literally saved many years of frustration for every single person who listens and applies this advice. What a generous man!
Loved the bit in #1 about missing the 1/2 the bids due to price! Yes! Low price, high volume is the WalMart game. Want to play there? Alright, cool - do that. As you also said, your quality has to be worthy of the price. I heard a chef say something years ago, that has stuck with me for a long time: “Where there is no pride, there is no quality.” Such an apt phrasing.
I'm sitting here tearing up because my Dad tried and tried and tried to be a general contractor but messed up almost all of the points you made. He ended up dying from a heart attack while working concrete alone on a job site. He was penniless and alone.
My dad just has severe ADD.. he’s so good at what he does and people love him. He makes every customer happy. But he just had so much trouble pricing things appropriately. He would forget something that doubled the labor spent, or he would miscalculate material costs, or something like that. Honestly it’s been the grace of God that he was able to support a family of 9 and a stay at home mom for so many years. I know for a fact there is good money in contract work like we do, but you just have to be meticulous and like he said be willing to lose the bid because you charged too much. I guess when you’re trying to feed seven kids you just don’t feel like you can afford to be underbid by another contractor.
The advice you're giving in this video is invaluable as a contractor and changing your mentality in order to provide a profit and be fair to yourself. Thankyou. I am going to share this on my channel
I follow your videos too. I’m not a professional framer, but a journeyman carpenter/ contractor in Newfoundland. I dabble in a bit of everything. Every time you call for a helper on your channel, I wish I could answer, if only I was living in Ontario..
Absolutely Excellent advice. I've seen it in my own business, (Architecture). I laughed, when you mentioned the "low bid, and promise of future work", .......... which NEVER comes ! So much rang a "bell" with me. I hope ALL the new Contractors, take heed of your advice. Take care !
I run a small IT company, and I would be happy if someone have told me this 15 years ago. I had to learn literally all these rules by myself. All of these applies. And trust me, such a learning proces will cost you a ton of money.
I'm in IT. Had a boss (director) who was looking for a new job. We were pretty tight so he would confide in me. He went to an interview and these C level exec kept asking him how long a certain project would take. They kept hammering him with this, and he knew that that's all they cared about. Finally, when he knew he wasn't going to take the job he said "That depends, how shitty do you want it?"
To borrow the phrase, doggone it, if there were someone to aspire to apprentice under, it would be you. Always full of incredible knowledge and knows the value of delivering words with humility. If only I could move down from Canada, enjoy some milder weather and work among craftsmen like you guys.
As a software developer I just wanted to pop in, say hi, and mention that this is very much applicable to the software industry as well. Thanks for sharing your hard learned wisdom!
Exactly my reaction too, and though I am an employee most of these lessons are applicable on some level anyway. I do cost/time estimates, I need to be part of handling scaling of work-load, I need to clearly communicate, and I can't afford to cut corners or it will bite me and everyone else in the butt later on, etc. etc. I'm sending this video to an entrepreneurial software developer because I felt it hit so right.
Thank you. I'm in that smaller category. I'm a handyman. I don't do bathroom or kitchen remodeling and I'm not a GC. I know what I like to do. Small, simple projects for homeowners. Plumbing, carpentry, electrical, glass, locks, masonry, repairs, etc. I have a ton of great tools and a ton of knowledge about tools and materials. I love keeping my work small. I don't hire anyone. If the job is too big for me - I give them a referral. Lots of great advice here. Thanks again.
@@jaredwaters4633 I've been a handyman for about 15 years, more full time in the last 10. A lot of my referrals come from Nextdoor, existing customers and I'm lucky that 2 local hardware stores refer me quite a bit. The only thing I could call marketing is making sure the hardware stores have my cards. I like the business small, but I stay busy.
This Video was a picture of me and my business, not a builder but an automobile mechanic. I was good at my trade, people came from miles around to have me fix what they couldn’t get done anywhere else. I worked my but off for 14 years but all I made was wages. I looked at mechanics I knew and they were taking home as much or more than me with less stress and fewer hrs working for some one else. I learned this from a father who worked the same way. If you wanted to make more you worked harder or longer hrs. I came to the conclusion after finding there were just so many hrs in the day and I could only work so hard. I sold my business and went to work for someone else telling people when they asked why that I was successful, just didn’t like the business part of the trade. I retired at 60 but looking back if I had control and knowledge of the 5 things you mentioned could have retired much earlier plus , who knows I might not have wanted to retire. ( lessons learned from an 81 year old man. ). Mikey
I absolutely LOVE this channel. I have gone from being a carpenter of 10 years, botching my own construction business attempts of 2 years to making the best decision I've made in 10 years and now I am a full time residential designer and I specialize in passive house design, something I've always wanted to do, have been studying for years and eventually pulled the trigger. I've really found my passion now and I've been watching your videos going through it all for so many years now. Cheers to you, you are like a fatherly figure for me haha at 30 years old. I'm from Vancouver Island B.C.
Great . I think homes have just not evolved. We just build like sheep 🐑, just follow the same procedure. Passive home design must be very enjoyable to actually build where the home actually saves you money and is comfortable place to live ..
I'm an independent trucker, and I'll say everything you just said goes across the board for anyone who is wanting to go into business for themselves. Great advice!
As a Cybertruck reservation holder and (tiny) Tesla shareholder, I have to ask - have you tried to do the math on what a Tesla Semi would look like for an independent rig? Is max weight a big issue? Or is a lower cost per mile, fewer repairs, and faster speed exchanged for 2-3 tons less max load (due to battery weight) an acceptable tradeoff? This was a question posed by Cybertruck Truck Guy channel.
I feel like i'm listening to my late father giving advice to me after having spent his entire life as a GC. Thank you for doing this channel its really amazing.
I’ve watched this specific video at least 6 times now. Incredible knowledge in this video. I have been in business for myself before and I didn’t know this stuff (young and dumb scenario ). I’m giving it another go to be in business for myself. This knowledge will help me out a lot. Thanks for your sharing of your knowledge
As for 2, i.e. communication - when asked if it's gonna be dusty and dirty, always say YES (but I'll do my best to mitigate it). After you've given your time estimate, be careful not to do it too fast, because a client may suspect you of cutting the corners. As for 5, when offered long term "extremely profitable" contract provided you'd make that first part very cheap, I always respond: "Why don't we make that first part on my terms, and later on I'll give a discount". Whatever the outcome, you'll won't loose, at least nothing that you'd regret loosing. In Poland we say - better feed yourself frequently with a small spoon than once in a while with a ladle.
I'm surprised how many of these principles are transferrable to my industry - I've been an IT contractor for many years and I can tell you that this is great advice.
been running an IT company for 9 years now. started as a contractor and for the first year or two, all I learned was I knew nothing about running a business and if you think it will take 20 hours, it will take 40 hours + lots of coffee
As others have commented, the advice in this video is first class. It does not apply to just tradesmen. It is advice to live by in all business. If you are a trusted provider of products and service the customers will come through referrals. No question 👍
Extremely well thought out and delivered! I’m a carpenter for 20 years and just started my first home improvement business. The information put forth in this video was extremely informative and helpful and reassured me that I’m heading in the right direction. To anyone just starting out, stay focused and I wish you all success in all of your endeavors
Oh. My. God. The best way to show how to be professional is to show the inverse, and that's definitely Ricky in that scene. Can't express enough how much the TPB reference is appreciated!
My lord so much good wisdom in this video! Been doing most of these tips for the 9 years I've been a full-time Smith but still have tons of room to improve :-) Thank you sir for putting this out
This guy is a real treassure. I live in Greece, i am in a different profession and yet all the things he said, apply to each and every work that you do. Thank you for your wisdom!
#6 Take care of your subs. They are your core asset. If you get a reputation for treating them properly you will have better resources at your disposal than your competition. Awesome video for anyone in any trade to watch.
I’ve been under pricing myself for years and years and you are so so correct and thank you for your help. I’ve been to good to people and stupid Szilard. Alberta Canada
Excellent words of advise and wisdom that folks in this line of work need to take to heart. I’d highly recommend David Gerstel’s two books on the subject “Nail Your Numbers” and “Running a Successful Construction Company”. Both of these books serve as excellent references and corner stones for folks looking to form and sustain a successful and healthy building company.
I’m sending this to my son because it has provided me with the most valuable advice that can help guide him through the FOUNDATION he needs at this time in his life. Thank you for YOU SHARING YOUR HEART
My favorite one to practice (because it's actually fun) is under-promise, over-deliver. I practice it every day when installing water treatment equipment. I tell them I'll be such and such hours to get the job done and will make a lot of noise and their water will be very unpleasant for a day or two after I'm done (this is the case with certain equipment in certain scenarios depending on what I'm doing) and in reality all of that is only true in the worst case. So then they are expecting the worst I can give them and I can go to work with no pressure on me. I work very hard to give my best and if everything goes wrong I end up giving just what I promised and the customer is still satisfied. But when everything goes better than promised (most of the time it does) the customer is impressed and VERY satisfied, far more likely to recommend you as well. USE CAUTION THOUGH! When you way under-promise and way over-deliver a less than wholesome customer may demand a discount or at least joke at wanting one to see if you take the bait. So don't let your customers expectations VS the reality you provide EVER be miles apart, this does you no favors. Ease them with the method and take a little pressure off yourself but then work hard and give them what they paid for and charge the money you knew you needed to charge. If someone demands a discount because you finished too quickly and easily use your best judgement how to proceed but do so carefully and with thought before you open your mouth. If someone jokes at a discount then joke back with them in return, like for like, but without demeaning them for saying such a thing. This is what I've learned practicing this principal.
As a jeweler in my younger years, then machinist for the last 20 years, all of the suggestions you mentioned apply. It took years to learn them, but now I use them every day and my life is smooth without the bumps and valleys of my younger years.
THIS. Been in the low voltage networking, access control, gate automation business since 2007. All of these rules apply. I tell my customers and potential customers up front, "I am not the cheapest. But I'm the best. You will never argue over your warranty. If we did it and it was wrong we'll fix it. PERIOD." Regardless of inflation I raise my prices every year. Take fewer jobs and make the same or more money. I used to be so busy I couldn't think. No rest. No life. A year would go by and it would feel like it was March. These are very valuable lessons. Thank you for your channel. Your willingness to pass on your wisdom. Your humor. Thank you for being you.
This is one of the biggest reason why I love your channel! I have actually had to stop take a brake and re work my plan for workimg my own business! I had been with 5 jobs as one person and work all five jobs to think i was doing things right. I stopped that race and found my stress and headaches I loved doing what I was doing but like you side dont bite off more then i could chew.
Thanks for the video ive been a GC for 15 years now I love my job im the guy that takes those smaller jobs and I'm always busy and I enjoy life..thanks for tips I learned a few new tipS
Great, Great video. I have been doing this for 40 yrs, and pardon the expression you hit the nail on the head. I had learned those lessons much like you, Some early and some later on. I found myself nodding my head as you went thru the list. Great job. finally, i must say semi-retirement is ok, but I am trying to find a young man I can tutor to get into the business. For me, some of the greatest joys in my life was a job well done. In my mind being a carpenter was the best of all worlds. Thank your Thank you for giving me the opportunity to express my feeling about one of the greatest profession on the planet. Just sayin RC
Word pictures is wonderful advice in my experience. There is nothing like the atmosphere of a job turning against you right out of the gate. Only had to learn that lesson once!
I started a mechanical engineering company 5 month ago in Germany. What you said can all be applied to my situation. I started to use ERPnext to keep track of all the orders, the warehouse etc. It's free and open source. Thank you for sharing your wisdom.
That last point is a great one. I own a company that specializes not in roof replacements, but in repairs. Roofing companies hate repairs, they just gum up their work flow. I take those jobs, I charge a lot of money and make damn sure the problem is fixed, and I make good money for my services.
Hey Scott, just wanted to say I’ve been going back and forth for a long time about taking this chance. I did collision repair for a while and just took a desk job recently. The work is extremely stable, but I don’t think Im happy. I’ve been praying for a while for guidance, and when I heard you say “it’s the turtles that when the race” I felt that was the answer I’ve been waiting on. I’ve always told myself “I’m not the fastest out there, but I don’t stop working and the tortoise beat the hare.” So thank you for all that you do. One foot in front of the other.
I've said the tortoise and hare thing for years .Looking at my bud for 20 years that took on big work to make me jealous, and ended up borrowing from me every winter...the tortoise wins,,Hes now next to homeless,,not quite.He grossed a millon bux several years ,put help in hotels away from home and was broke at the end of every year with the IRS billing him!
At 82, he gives me hope for the next generations. I tried general contracting 50 years ago with A & B licenses gained from service as a Navy officer. Easy to pass the test but by starting at the top got in way over my head. Moved to technology and was able to move up with computers because so few people wanted to learn. It is gratifying to see technology enable the best to teach large numbers who are willing to learn. Some are cut out for construction work. I wasn’t.
I am just starting out on my own. It has been very fulfilling. I haven't made much money but i am very happy with my life. Thank you for your wise words.
Thank you for your testimony That is true all what you said I was same situation finally I understand be in business been a GC is to make money and create a long relationship with the customer live a better life
![Carpentry 101: Basics of Wood Framing with MattBangsWood [#1]](/img/n.gif)
This guy is ridiculously knowledgeable and presents everything clearly. And then he hits us with the Trailer Park Boys clip. This man is gold, solid gold. Thanks for the video!
...and then he puts his Hand next to a running Chainsawblade. Kind of spoils it for me.
im sitting here taking notes:
"stop thinking about the value of what you provide in terms of what you would pay to receive it.its an irrelevant perspective. The value of what you provide is what other people are willing to pay. And its a hard thing to discover because your competition is not going to be anxious to share that with you but in general terms, if your not missing at least half your bids because of price. You’re Too low. "
@@klot4544 He's been doing it a long time and still has all his fingers...I'd say he knows where his blade is
Good advice sir wish I heard it 12 years ago. But making changes everyday. God bless
You forgot to mention that when you find good help, take care of them. They're the key to running a successful construction business.
Amen to that!
Dude. Thank you! About time someone recognize and knows what's going on
Absolutely!!👍
I've been working in construction full time since I was 17 and was always willing to take a little less for steady work and a good environment
I don't know this man personally, but I think that he is the type to simply assume that.
I built up a reputation over three years of doing good work at low prices, woke up one day at how I was short changing myself and doubled my prices. I lost half my customers and was therefore making the same money for half the work. Result!
My dads been charging the same prices since 1999 literally. He is retiring n i am taking over. I pretty much just double what he says now. Esp right now i can triple it No advertising we been living decent for years
Man, God is good to you guys!
Happy for you, that's a great change.
man you may just be in a stagnant market.. I use to do a lot of contracting around Dallas.. booming market but man ull run urself ragged.. ive since went back to welding.. residential work is just annoying dealing a majority of the customer. Everyones wanting something free and everything is over priced... I rather just deal with a company lol
An old boss and friend told me one day, "I'd rather do a hundred jobs a year and make good money than do five hundred jobs a year and make decent money."
All 5 of your advises are right on. I was retiring and I sold my practice to my project manager. I spent 2 years with him while he paid me part of our agreed upon price. I told him everything you have mentioned in this video over and over. That all went out the window when he was on his own. He eventually lost his contractors license and his corporation license because he didn't pay return client phone calls or pay his subcontractors in a timely manner. He managed to destroy a $750,000 a year, one man company in less than one year by not paying attention to the tenants you just spoke about.
Keep up your informative videos, I enjoy listening to them.
Pete Daly
San Diego, Ca,
Thank you: these are all things I really need to learn & to apply in practice.
I quit my desk job in January of this year- I was so worn down from working in a corporate environment. I own a rental house so I know how to fix things and remodel, so I jumped right in. I had no idea how much my own self-respect had begun to suffer until I began working for myself and began to gain real confidence. Best career move I have EVER made and I won't be looking back.
Update on this? I hope it’s going well!
Update please
Respect!!!
They want an update!!!
'Get out of bed early, work hard, treat people how you would like to be treated and odds are you'll have a good life'..... Amen to that.
I could not agree more.
God bless from England
God doesn't exist
@@Adrian2140 what a strange person that sits at home and feels compelled to write stuff like that to a person you'll never meet. I hope life treats you better in future and you learn to grow up a bit. God bless you child.
@@MrJimtimslim God doesn't exist, get on with the times. Religion is holding us back from developing compassion and naturally evolving.
@@Adrian2140 God bless you
Thanks but I'd rather have a nice day instead. Cthulhu bless you.
The best advice I ever got about quoting came from a salty old cabinet maker... He said "If you are not embarrassed to say the number, it's not the correct number." He said you have to plan for the bad job, or the unplanned expenses.. otherwise the first hiccup you encounter, you are losing money...
This is great, and I can relate!
That's a GREAT quote about quotes! Seriously, pun and all!
Exactly! And you have to have that job pay for itself. Or have the capital to be able to float a job until payments are made. So many guys rely on deposits from the next job. That’s a problem, Especially when the economy slows and there isn’t a next job for a bit.
That is definitely where I bombed out. I do everything for myself, so I cannot see why other people would be willing to pay what I would need to charge at minimum. If you cannot ask for what you need to pay you cannot stay in business.
Unfortunately, you’re correct
Contractor for 38 years here. My word of advice for anybody starting out. Buy 1,000 pencils, and 100 utility knifes and HIDE them under the seat of your truck. Tell nobody you've done this. You'll thank me later.
You are absolutely right! I do the same!
? i never been more confused in my life
Hahahahahahahaha!!
I second this notion..
And 10 tapes!
I’d forget they were there and buy more 😂
I am 52. My father was a GC and I have been building all my life. You remind me of the mentors of my early days that shaped me to be who I am today. Every one of your videos is a walk down memory lane when someone cared to teach the skills to be amazing! Thank you for sharing all that you do. I pray many young men and women find your chanel and apply your teaching!
Great video .I have a couple small points to add after being a custom home builder for 30 years .ALWAYS ALWAYS have a change order form in your possession or make sure you always document anything that varies from your original bid from your approved set of plans. It truly makes everybody process much more enjoyable,Contractor /Customer . And my second bit of advice is take good care of your body .Construction will flat wear a soul out .Good luck and enjoy the craftsmanship of this trade .
I can tell that this is the kind of guy that when having him as a boss, you clearly get 100% of the instructions he's giving you and how to execute them and what the expectation is, he expresses himself in such well structured sentences, and seems pretty calm, the kind of boss you hope to get on the jobsite.
Man! Most definitely, my pops used to work side by side with me. What great memories. May God grant me that same grace some day.
I wish all bosses where like him, patient, kind, ( giving the apprentices therapy 90 percent t of the time) doing everything well as it can be, measurements and what not, not at all your typical slobobian contractor, breaking shit, doing g shitty work. It's really about what CLASS you want to serve. If you want to learn good work, you must not market to the survivors...
You hit the nail right on the head. I’m sad to say that there are guys in this line of work that would take advantage of his somber ways.
Oh ya you should watch his video on how to be a better hand! He builds a handy cap ramp for his mom on a house 🏡 ! Fricon bad ass!
Fax
All excellent points. As a GC for 20+ years, I realized that I was really someone with a gambling problem but didn’t know it. 🙋♂️
This comment is legendary!
I've been a General Contractor for 30 years and All of these things are ABSOLUTELY 100 PERCENT TRUE. I had to figure out every single one of these things the hard way. 25 years to learn the information you just saw in this short video. I did every single one of the things described in this video especially on what not to do and the results are exactly as described! Once you figure all this out it can be a rewarding career. Most people including myself are just abt worn out by the time you figure all this out the hard way. If you disagree and think anything in this video will be different and not happen to you, you are sadly mistaken. 😁
Love all your videos guys. Keep up the good work.
I'm right behind you Mr. Smith. I'm going on 27 years as a GC. A solid 40 years in construction! Throughout these 27 years friends and family have been telling me I don't charge enough for the caliber of work I deliver. I finally started listening a while back and gave myself and my business a raise. I'm busier now than I've ever been!
Been in the construction trades for 10 years, thinking about getting my general contractor's license most likely.
If the one thing I've learned in the business management and delivery of a project aspect.
The biggest cheat, con artists is the one who delivers a cheap bid and cheap work and gets no satisfaction delivering an end product that will last the test of time. being cheap always costs more because sometimes it is cheaper to tear everything out start from scratch then just try to slap on a coat of paint.
@@klmbuilders5385 same here
2:28 Money
5:33 Communication
8:34 Regulations
10:12 Bookkeeping
13:48 Growth
Been in the trades. (mechanical contractor) for over 35 years and learned all the lessons in this video the hard way myself on a similar timeline. You hit all the nails right on the head brother! I was fortunate to be exposed to lesson #1 early from a wily old Air Conditioning man that I got my first job from. He would say, "I'm the most expensive guy in town and proud of it." Unfortunately, it took me quite a few years on my own to actually apply that lesson but it is so true. Strive to be the best in your field and don't be shy about charging a premium for it. It's hard at first but once you've EARNED the reputation, life gets much better.
Yup. Let me tell you ya do one job for cheap and you get 5 others that call and expect it cheap as well. That one was tough to fix. I still get anxious when it’s time to bill customers.
"Do this for cheap and I'll have a lot of work for you in the future!" How many times have I heard that one?! Countless.
Then those people go out and still get more bids trying to find a mythical lower bid. They eventually find rookies or charlatans who will quote them even lower. Then mess it up. Then they want you to fix it. But still don't want to pay enough to get it done right!
@@Nphen so it's not just me? I priced a job once, set a start date and two days before the client called and said they were going to have to put it off due to some health issues. That night I got a call from a guy asking me all these questions about how I would do this,and how I would do that. Long story short I out two and two together and figured out it was the job I was supposed to start that got put off. This guy had priced it lower, and then called me wanting me to tell him how to do it, then had the balls to ask if he could borrow my tools to do it. I started to call the client and warn him, but I figured they were meant for each other.
Good decision.
One of my first customers told me this line of bull crap. Fortunately, he was setting off all kinds of other alarm bells and I never did a thing for him. Blocked him and told him to never contact me again. I was lucky, because my previous career had already taught me the lesson. I take a harder line with these people than Scott does. These people are thieves in my opinion. Taking advantage of your trust in their words.
Run away from those con men.
Scott, this is one of your best videos. As a father of young carpenter, I find it's easy enough to learn the trade, but it's a lot harder to learn how to run a business. The advice in this video is great. Thank you. I will get my son to watch it.
I thought his name was sam
Different skills. I saw it working as a public defender. Some people are great lawyers, but horrible managers.
Learning a skill, any skill, is different than learning a business. A whole different skill set.
Hi I learned ALMOST EVERY THING FROM MY FATHER , VINCENT PAYNE , THAT MAN COULD DO ANYTHING USING A SLIDE RULE, A PENCIL,& A SHOPPING BAG , THE REST I LEARNED FROM MY MISTAKES..ALWAYS DO YOUR BEST , ALWAYS SURROUND YOUR SELF WITH T H E
BEST SUBCONTRACTORS, & ALWAYS KEEP YOUR WORD EVEN WITH THOSE THAT DON'T IF YOU ARE THE BEST NO THE BIGGEST YOU WILL SUCCEED, THOMAS PAYNE,
MASTERBUILDERS.
Scott, I have to be honest. This video nearly brought me to tears of joy and gratefulness. I have been doing handyman work for about 2 years now full time. I have learned tremendously from your past videos, and have taken great pride in my work over the past 2 years. Now, my business is exploding. And I'm facing many of the issues that you mentioned here. I cannot thank you enough for sharing your wisdom, knowledge and experience with me. I know that you have over a million fans. But I don't know them. I can only speak for myself. You are a mentor and a hero to me. My best wishes to you and your loved ones for a very Happy Thanksgiving. Thank you again, sir.
Fuck yeah bud! Have a nice thanksgiving this year and next! Mentors are important, even if you only know them on youtube. I take EC, TOT, AvE, etc very seriously because I know they've made it. Self-actualization is compelling and positive, especially with a cool attitude to boot. Cheers!
I love listening to the gray haired guys. Everything in this video is right on. I can’t emphasize enough how accurate he is here. It is as accurate as any self-help help book I’ve ever read.
Iv been in carpentry/home renovation for about 10 years. Started working for myself this january and its the best decision i could have made. And i owe alot of thanks for my success to this man right here. I subscribed to this channel long ago and i regularly come back to rewatch videos just like this one. hearing your wisdom has made a better contractor out of me and honestly scott i could not thank you enough. God bless.
He really is everything that he appears to er isn't he!
If you chose him as a mentor/motivator your town/city is one of the lucky ones.
This guy makes me feel wholesome and well prepared to take on anything on life.
i love his tolerance to shaky behaviours, sorta like "dont do this or you will hurt yourself really bad. Here is how I do it tho if you want to watch.". This guy understands life and knows its not all rainbows. reminds me of my dad. i should call my dad
It's comforting as a 55-year-old contractor to know that I'm not the only one who started figuring this stuff out late in my career
Me too.I am 55 and still learning.
60 here, I have gotten 90 percent of what I’ve bid on. Fear of losing help because I didn’t have steady work is hard to overcome. The saying, a construction bid is a wild assed guess carried out to two decimal places is true at least in my case. Doing work for a stipulated sum is the scariest thing about being a general contractor. I have no nest egg, no retirement, and it doesn’t look good for the future, despite the fact we accomplished so much and had so many happy customers and referrals due to that. Good luck to everyone that does that.
Me too brother. 48 years. I finally started doing some work for a big company I knew pretty well, and when I saw what they were charging for the same work I do I realized why I went bankrupt before.
@@stevegiboney4493 I've been there. And something I have learned is that the guy who is getting about 40 or 50% of what he bids will make a great living and have plenty of expendable income, and can help take care of those key workers. Raise the prices. My Dad who was a successful contractor for years told me when I was a kid "Just when you start to think your gouging"
Too true, bro, same here. Never too late, though, as the rest of your life starts today.
And just like that I've watched the best class on economics I've ever known.
This is gospel to me.
I’ve watched/listened to this several times.
I really appreciate you taking the time to share your insight to this work, and as it applies to many other trades as well.
Thank you!!
Such a nice wholesome approach on the trades
It doesn’t apply towards drywall in NH and MASS
Does not matter how fast or incredible of a job you do
If anyone, and I mean anyone
(no teeth no car no insurance )
approaches a builder with a low ball Offer
that is now the going rate they all go off of
Using this approach They have effectively kept the price the same as when I started in 1996
Yet they all charge the going rate for our work
I come for every video, only minimally for the "work" or "how to" content. Mostly I come for that voice and demeanor, and the simple integrity. and very often, as in this video.....I can't watch without tearing up.
Scott.....Nate......keep up the GOOD work (that true underlying purpose of your efforts to share, always) Darrell
BAM!!! ^^^ What he said ^^^
I’m a retired machinist so why am I compelled to soak up the wisdom pouring out of these videos?
Because it’s nice to see some still exists and is being shared.
Best thing I every heard was a customer quoted a competing bid price to my boss at the time he looked the gentleman dead in the eye and told him point blank you can take that price but I'll be at your place next year fixing his screw up and you'll have paid twice as much anyway.
We started the job the next day.
This information is gold. The trick is getting young, prospective contractors to listen to it and take it to heart.
Most contractors DON’T fail bcz they don’t know their craft. Most fail bcz they had no idea what really goes into running a business. Your craft and your business are two completely different things.
When the owners or ‘license holders’ of the company I used to work for, would come by the site for a visit, I used to be anxious to take them around to see all the interesting things we were working on. I realized later that as we would do these site walks, it was really just them humoring me. They were most interested in sitting down and discussing schedule and budget and material costs and usage and all the boring stuff that tend to ultimately decide whether a job is a winner or a loser. The difference is, I was essentially a craftsman that loved producing good work. They were businessmen that loved to produce profitable good work. Both essential for success.
So true here. It really takes someone special who can 1, be a craftsman and learn your trade. 2, be a good businessman and run a business/ company. 3, be a good salesman and instill trust. 4, bidding projects , become proficient at quoting jobs. 5, establishing or having credit. 6, ability to collect and understand you have to get tough (lawyer up), if needed. 6, an understanding wife and family, sometimes it’s long committed days and nights, not everyone is understanding of the commitment needed. 7, good employees, these days it’s so hard to find anyone that wants to work a full day 5 days a week. 8, lastly a little luck goes a long way as well. One costly mistake or injury and it’s all gone. It’s not for everyone.
@@cpmiller1965 Very comprehensive list. Well said.
I’m afraid, from that list, my biggest shortcoming would have to be salesmanship. What that will cost you is time. It’s going to take longer for people to get to know you and your abilities. And who has an over-abundance of time? It may also prevent you from branching out, beyond your familiar surroundings. Salesmanship can’t be overlooked.
Man, there is so much wisdom here. Thanks much for making it a permanent fixture on the internet.
I work in manufacturing, not even close to construction, and yet I can’t stop watching this guy and genuinely taking his advice to heart.
The underbidding is so true. My boss under bids everything any constantly looses money. He also commits himself to a short finish time. This causes the employees to work in a rushed stressful environment because we have to go go go and get it done bc they didn’t charge enough.
Under promise and over deliver.
Go on you own man, get licensed and insured and find your own work. Learn from your bosses mistakes and you'll make probably 50% more money.
Vicious cycle
Sounds like every machine shop I've been in. Lol
If u underbid but are honest hopefully client will work with you, but that’s a gamble. Go high can always come down.
This guy should be everybody's dad.
Except mine, I’m older?
Couldn't have said it better myself Uncle Tyler.
He’s like my father in law. Smart as hell!
Not a lot like him left . Unfortunately
Can confirm.
btw, he's actually my father.
So much earned wisdom in this video, thank you, Scott.
I've been a GC here in downtown Tokyo for about 10 years now, before that I helped run my wife's family business for 20 years.
I have to say I have learned all of those lessons, many the hard way but now I'm committed to do the best work I can, and if a client does not want to pay for the best work then I'm no interested in doing it.
I always say to people:
Good
Fast
Cheap... Pick two, you can usually see them thinking about it for a second or two. LOL
Thanks for the work you and Nate do, this channel is a true blessing.
Cheers from Tokyo.
Stu
Thanks Stu!!!
When I was in Japan I was impressed to see the attention to detail... Thanks for reminding me that customers are the same the world around!
I’m a software contractor, and nearly every word of this video was relevant. Top notch content - for any walk of life!
Sir when I see a Pro out there like you , we all benefit at are end. ( I am not in the construction business) thank you for all your video
"Everything that attributes to the accomplishment of the work is part of the cost of the job" is one of your quotes. That is very important to remember.
As a 71 year young carpenter that recently retired my remodeling business that I started at age 23, I wish I would of heard this when I first started. As a 71 year young carpenter I learn something every day watching You Tube.
All 5 things you stated are right on point. One thing I'd like to add is don't let your ego take a job that your not set up for or make a reasonable profit. Your #3 point about playing by the rules. I too late in my career accepted the fact to follow all the regulations no matter how ridiculous they seem. I too worked in Oregon but in Portland metro and primarily in Lake Oswego. It is beyond frustrating dealing with the building regulations and bureaucracy in this area. Common sense doesn't exist in this area.
Thanks for making a fine informative video . I'm going to pass it on to a young remodeler just starting out.
the politicians in Portland missed it by a long shot also.Best to you.
This advice is golden it’s 100% accurate. I would add, it’s fine to have someone else do your books. However, make sure you understand what they’re doing, pay attention to the numbers and understand the story they’re telling. I started my own business 10 years ago. It’s hard and it’s scary. I made almost all the mistakes Scott talked about. By the way I opened an accounting practice not a construction business.
You know the old saying-
"A penny for your thoughts?"
Well I feel like we should each send this man a dollar for the wisdom he just sacrifised his own *valuable* time to provide us! It still wouldn't come close to what his words are worth (to me, at least) A simple "Thank you" just doesn't seem like enough! Wish I'd heard this 25yrs ago, or worked under a guy like this. What an example of how to live and be a good human... Oh, and a good contractor! This man is a national treasure and should be supported and protected at all cost! ♥️ Keep it up. Tell us more, sensei!
You are an invaluable resource sir, I cannot begin to thank you enough for leaving your legacy here freely. Even my own sons may hear your voice, see your face, and be better men for it.
I've made a living in construction most of my life. This is some of the best advice I've ever heard. Thank you.
I was in construction for over 40 years, now retired, just listening to this brought up so many memories that I started to have flashbacks of the pressure that comes with the responsibility of being in the business as a contractor. So happy I am retired lol. Great job sir!
Great content! Thank you!! I've been a contractor for 30 years and everything you said was so true. It's not for the faint of heart.
I painted houses for 15 years. You 100% correct in EVERYTHING you said. I like how up front you are too. Thanks
Been in construction since 17 years old. I'm 46 now and have had two self-run design-build businesses over the last 20+ years, both "successful", one still operating. IMHO, 99% of the construction influencers out there are full of a generous amount of bulls**t and ultimately trying to sell you a product or brand - in fact, they're probably sponsored on the backend by a product or brand. If you're thinking about running your own construction company, this here may be the most important and genuine of any videos you could ever watch. Listen to this man. And, when you start your business, have three people on speed-dial: #1 your bookkeeper, #2 your lawyer, and #3 a yoga instuctor :) it's a marathon, prep yourself for it. Great video.
Every word a true word spoken with experience, especially No5. The last time I was told there was more work coming I boosted my price for the first job and told him I’d discount future work. Never got the first job... lucky escape I guess!
genius 👌
This is golden advice! You've shared a lot of this in your podcasts. So guys go check out the podcasts!! But this is the first time you've had it organized in an entire video. THANK YOU for sharing this priceless advice! It took you many years to figure this out and you've literally saved many years of frustration for every single person who listens and applies this advice. What a generous man!
Loved the bit in #1 about missing the 1/2 the bids due to price! Yes! Low price, high volume is the WalMart game. Want to play there? Alright, cool - do that. As you also said, your quality has to be worthy of the price.
I heard a chef say something years ago, that has stuck with me for a long time:
“Where there is no pride, there is no quality.”
Such an apt phrasing.
The quote nails it!
I'm sitting here tearing up because my Dad tried and tried and tried to be a general contractor but messed up almost all of the points you made. He ended up dying from a heart attack while working concrete alone on a job site. He was penniless and alone.
So sorry. I love you man! Keep going
Bro you just read my mind
Sorry to hear that brother
My only comment ever on this channel and it's to say sorry for what happened to your father
My dad just has severe ADD.. he’s so good at what he does and people love him. He makes every customer happy. But he just had so much trouble pricing things appropriately. He would forget something that doubled the labor spent, or he would miscalculate material costs, or something like that. Honestly it’s been the grace of God that he was able to support a family of 9 and a stay at home mom for so many years. I know for a fact there is good money in contract work like we do, but you just have to be meticulous and like he said be willing to lose the bid because you charged too much. I guess when you’re trying to feed seven kids you just don’t feel like you can afford to be underbid by another contractor.
The advice you're giving in this video is invaluable as a contractor and changing your mentality in order to provide a profit and be fair to yourself. Thankyou. I am going to share this on my channel
I follow your videos too. I’m not a professional framer, but a journeyman carpenter/ contractor in Newfoundland. I dabble in a bit of everything. Every time you call for a helper on your channel, I wish I could answer, if only I was living in Ontario..
I’ll be able to quote this video word for word in a couple weeks
Absolutely Excellent advice.
I've seen it in my own business, (Architecture).
I laughed, when you mentioned the "low bid, and promise of future work", .......... which NEVER comes !
So much rang a "bell" with me.
I hope ALL the new Contractors, take heed of your advice.
Take care !
you can answer also, i make an high bid but i promise low bid for great future work
I run a small IT company, and I would be happy if someone have told me this 15 years ago. I had to learn literally all these rules by myself. All of these applies. And trust me, such a learning proces will cost you a ton of money.
I'm in IT. Had a boss (director) who was looking for a new job. We were pretty tight so he would confide in me. He went to an interview and these C level exec kept asking him how long a certain project would take. They kept hammering him with this, and he knew that that's all they cared about. Finally, when he knew he wasn't going to take the job he said "That depends, how shitty do you want it?"
You are a well seasoned contractor, took me 22 years to understand , I now run my business the same way as this man. I thank you for validating
I’ve been an HVAC contractor for 30 plus years . This is the BEST BUSINESS video i have seen . Worth every minute of your time !
To borrow the phrase, doggone it, if there were someone to aspire to apprentice under, it would be you. Always full of incredible knowledge and knows the value of delivering words with humility. If only I could move down from Canada, enjoy some milder weather and work among craftsmen like you guys.
As a software developer I just wanted to pop in, say hi, and mention that this is very much applicable to the software industry as well. Thanks for sharing your hard learned wisdom!
I own a small 25y sw co and thought the same thing! SW = building, no?
Exactly my reaction too, and though I am an employee most of these lessons are applicable on some level anyway. I do cost/time estimates, I need to be part of handling scaling of work-load, I need to clearly communicate, and I can't afford to cut corners or it will bite me and everyone else in the butt later on, etc. etc.
I'm sending this video to an entrepreneurial software developer because I felt it hit so right.
Thank you.
I'm in that smaller category. I'm a handyman. I don't do bathroom or kitchen remodeling and I'm not a GC. I know what I like to do. Small, simple projects for homeowners. Plumbing, carpentry, electrical, glass, locks, masonry, repairs, etc. I have a ton of great tools and a ton of knowledge about tools and materials. I love keeping my work small. I don't hire anyone. If the job is too big for me - I give them a referral.
Lots of great advice here. Thanks again.
How do you market your handyman business?
@@jaredwaters4633 I've been a handyman for about 15 years, more full time in the last 10. A lot of my referrals come from Nextdoor, existing customers and I'm lucky that 2 local hardware stores refer me quite a bit. The only thing I could call marketing is making sure the hardware stores have my cards. I like the business small, but I stay busy.
Wish I could find someone like you in my town!
This Video was a picture of me and my business, not a builder but an automobile mechanic. I was good at my trade, people came from miles around to have me fix what they couldn’t get done anywhere else. I worked my but off for 14 years but all I made was wages. I looked at mechanics I knew and they were taking home as much or more than me with less stress and fewer hrs working for some one else.
I learned this from a father who worked the same way. If you wanted to make more you worked harder or longer hrs. I came to the conclusion after finding there were just so many hrs in the day and I could only work so hard. I sold my business and went to work for someone else telling people when they asked why that I was successful, just didn’t like the business part of the trade.
I retired at 60 but looking back if I had control and knowledge of the 5 things you mentioned could have retired much earlier plus , who knows I might not have wanted to retire. ( lessons learned from an 81 year old man. ). Mikey
Your humility is admirable
I absolutely LOVE this channel. I have gone from being a carpenter of 10 years, botching my own construction business attempts of 2 years to making the best decision I've made in 10 years and now I am a full time residential designer and I specialize in passive house design, something I've always wanted to do, have been studying for years and eventually pulled the trigger. I've really found my passion now and I've been watching your videos going through it all for so many years now. Cheers to you, you are like a fatherly figure for me haha at 30 years old. I'm from Vancouver Island B.C.
Great . I think homes have just not evolved. We just build like sheep 🐑, just follow the same procedure. Passive home design must be very enjoyable to actually build where the home actually saves you money and is comfortable place to live ..
I'm an independent trucker, and I'll say everything you just said goes across the board for anyone who is wanting to go into business for themselves. Great advice!
As a Cybertruck reservation holder and (tiny) Tesla shareholder, I have to ask - have you tried to do the math on what a Tesla Semi would look like for an independent rig? Is max weight a big issue? Or is a lower cost per mile, fewer repairs, and faster speed exchanged for 2-3 tons less max load (due to battery weight) an acceptable tradeoff? This was a question posed by Cybertruck Truck Guy channel.
The trailer park boys clip was perfect
I love this channel, it was brilliant!
It made my day to see that
“Let the liquor do the thinkin’, bud.” -Lahey
I bloody love the Trailer Park Boys!
That is one of the funniest skits ever when you come from a construction background. Hilarious!!!
I feel like i'm listening to my late father giving advice to me after having spent his entire life as a GC. Thank you for doing this channel its really amazing.
not just construction, anyone running a business or functioning as a contractor needs this advice.
I’ve watched this specific video at least 6 times now. Incredible knowledge in this video. I have been in business for myself before and I didn’t know this stuff (young and dumb scenario ). I’m giving it another go to be in business for myself. This knowledge will help me out a lot. Thanks for your sharing of your knowledge
As for 2, i.e. communication - when asked if it's gonna be dusty and dirty, always say YES (but I'll do my best to mitigate it). After you've given your time estimate, be careful not to do it too fast, because a client may suspect you of cutting the corners.
As for 5, when offered long term "extremely profitable" contract provided you'd make that first part very cheap, I always respond: "Why don't we make that first part on my terms, and later on I'll give a discount". Whatever the outcome, you'll won't loose, at least nothing that you'd regret loosing.
In Poland we say - better feed yourself frequently with a small spoon than once in a while with a ladle.
I'm surprised how many of these principles are transferrable to my industry - I've been an IT contractor for many years and I can tell you that this is great advice.
been running an IT company for 9 years now. started as a contractor and for the first year or two, all I learned was I knew nothing about running a business and if you think it will take 20 hours, it will take 40 hours + lots of coffee
As others have commented, the advice in this video is first class. It does not apply to just tradesmen. It is advice to live by in all business. If you are a trusted provider of products and service the customers will come through referrals. No question 👍
Extremely well thought out and delivered! I’m a carpenter for 20 years and just started my first home improvement business. The information put forth in this video was extremely informative and helpful and reassured me that I’m heading in the right direction. To anyone just starting out, stay focused and I wish you all success in all of your endeavors
LMAO, did not expect to see Ricky's bathroom reno in this video.
More like demo. ;-)
Just when I thought I couldn’t love this channel any more, they go in and throw a TPB reference in there!
TPB is the best!
I wish I could give an extra like for including Trailer Park Boys
Oh. My. God. The best way to show how to be professional is to show the inverse, and that's definitely Ricky in that scene. Can't express enough how much the TPB reference is appreciated!
the voice of reason I have needed to hear for years....Ive got to stop selling myself short
My lord so much good wisdom in this video! Been doing most of these tips for the 9 years I've been a full-time Smith but still have tons of room to improve :-) Thank you sir for putting this out
This guy is a real treassure. I live in Greece, i am in a different profession and yet all the things he said, apply to each and every work that you do. Thank you for your wisdom!
#6 Take care of your subs. They are your core asset. If you get a reputation for treating them properly you will have better resources at your disposal than your competition.
Awesome video for anyone in any trade to watch.
Wow, not a truer word spoken, I wish this advice was available to me 20 years ago! Greatest advice you could possibly do for a beginner!
@Hello Kerry how are you doing?
I’ve been under pricing myself for years and years and you are so so correct and thank you for your help. I’ve been to good to people and stupid Szilard. Alberta Canada
Excellent words of advise and wisdom that folks in this line of work need to take to heart. I’d highly recommend David Gerstel’s two books on the subject “Nail Your Numbers” and “Running a Successful Construction Company”. Both of these books serve as excellent references and corner stones for folks looking to form and sustain a successful and healthy building company.
Best advice Ive ever heard
I’m sending this to my son because it has provided me with the most valuable advice that can help guide him through the FOUNDATION he needs at this time in his life.
Thank you for YOU SHARING YOUR HEART
My favorite one to practice (because it's actually fun) is under-promise, over-deliver. I practice it every day when installing water treatment equipment. I tell them I'll be such and such hours to get the job done and will make a lot of noise and their water will be very unpleasant for a day or two after I'm done (this is the case with certain equipment in certain scenarios depending on what I'm doing) and in reality all of that is only true in the worst case. So then they are expecting the worst I can give them and I can go to work with no pressure on me. I work very hard to give my best and if everything goes wrong I end up giving just what I promised and the customer is still satisfied. But when everything goes better than promised (most of the time it does) the customer is impressed and VERY satisfied, far more likely to recommend you as well. USE CAUTION THOUGH! When you way under-promise and way over-deliver a less than wholesome customer may demand a discount or at least joke at wanting one to see if you take the bait. So don't let your customers expectations VS the reality you provide EVER be miles apart, this does you no favors. Ease them with the method and take a little pressure off yourself but then work hard and give them what they paid for and charge the money you knew you needed to charge. If someone demands a discount because you finished too quickly and easily use your best judgement how to proceed but do so carefully and with thought before you open your mouth. If someone jokes at a discount then joke back with them in return, like for like, but without demeaning them for saying such a thing. This is what I've learned practicing this principal.
A discount.. laughing out loud
Do you get a discount at the doctors, or what about at the mechanic shop
@@vanderumd11 and yet people have the guts to ask...
As a jeweler in my younger years, then machinist for the last 20 years, all of the suggestions you mentioned apply. It took years to learn them, but now I use them every day and my life is smooth without the bumps and valleys of my younger years.
I need to watch this once per month... this is incredibly motivating.
THIS. Been in the low voltage networking, access control, gate automation business since 2007. All of these rules apply. I tell my customers and potential customers up front, "I am not the cheapest. But I'm the best. You will never argue over your warranty. If we did it and it was wrong we'll fix it. PERIOD."
Regardless of inflation I raise my prices every year. Take fewer jobs and make the same or more money.
I used to be so busy I couldn't think. No rest. No life. A year would go by and it would feel like it was March.
These are very valuable lessons. Thank you for your channel. Your willingness to pass on your wisdom. Your humor. Thank you for being you.
This is one of the biggest reason why I love your channel!
I have actually had to stop take a brake and re work my plan for workimg my own business!
I had been with 5 jobs as one person and work all five jobs to think i was doing things right.
I stopped that race and found my stress and headaches
I loved doing what I was doing but like you side dont bite off more then i could chew.
Thanks for the video ive been a GC for 15 years now I love my job im the guy that takes those smaller jobs and I'm always busy and I enjoy life..thanks for tips I learned a few new tipS
Great, Great video. I have been doing this for 40 yrs, and pardon the expression you hit the nail on the head. I had learned those lessons much like you, Some early and some later on. I found myself nodding my head as you went thru the list. Great job. finally, i must say semi-retirement is ok, but I am trying to find a young man I can tutor to get into the business. For me, some of the greatest joys in my life was a job well done. In my mind being a carpenter was the best of all worlds. Thank your Thank you for giving me the opportunity to express my feeling about one of the greatest profession on the planet. Just sayin RC
What state do you live in may I ask sir.
Word pictures is wonderful advice in my experience. There is nothing like the atmosphere of a job turning against you right out of the gate. Only had to learn that lesson once!
Wow. Am watching this video but I need to repeat it few times and make sure I take notes. Very informative.
Your advice is golden. Contractors would be wise to LISTEN.
I started a mechanical engineering company 5 month ago in Germany. What you said can all be applied to my situation. I started to use ERPnext to keep track of all the orders, the warehouse etc. It's free and open source. Thank you for sharing your wisdom.
Great video. I'm looking into side work as a union carpenter, and this video offers some great points
That last point is a great one. I own a company that specializes not in roof replacements, but in repairs. Roofing companies hate repairs, they just gum up their work flow. I take those jobs, I charge a lot of money and make damn sure the problem is fixed, and I make good money for my services.
I have a roofing company in NE FL. I love repair work! Fast profit. Easy $!
Bless this mans heart !
This is such a wholesome video. We just opened up our GC business two months ago and experiencing rapid growth so this was great to watch! Thank you
Hey Scott, just wanted to say I’ve been going back and forth for a long time about taking this chance. I did collision repair for a while and just took a desk job recently. The work is extremely stable, but I don’t think Im happy. I’ve been praying for a while for guidance, and when I heard you say “it’s the turtles that when the race” I felt that was the answer I’ve been waiting on. I’ve always told myself “I’m not the fastest out there, but I don’t stop working and the tortoise beat the hare.” So thank you for all that you do. One foot in front of the other.
I've said the tortoise and hare thing for years .Looking at my bud for 20 years that took on big work to make me jealous, and ended up borrowing from me every winter...the tortoise wins,,Hes now next to homeless,,not quite.He grossed a millon bux several years ,put help in hotels away from home and was broke at the end of every year with the IRS billing him!
This guy makes videos on how to live life-background just happens to be construction.
Concur.
Good observation.
exactly what i was thinking
At 82, he gives me hope for the next generations. I tried general contracting 50 years ago with A & B licenses gained from service as a Navy officer. Easy to pass the test but by starting at the top got in way over my head. Moved to technology and was able to move up with computers because so few people wanted to learn. It is gratifying to see technology enable the best to teach large numbers who are willing to learn. Some are cut out for construction work. I wasn’t.
Life leader with cool b roll lol
I am just starting out on my own. It has been very fulfilling. I haven't made much money but i am very happy with my life. Thank you for your wise words.
Thank you for your testimony
That is true all what you said
I was same situation finally I understand be in business been a GC is to make money and create a long relationship with the customer live a better life
Excellent information and very well presented. Thank you