Wayne and Rob discuss the difference between markups and margins and how it effects your bottom line. Follow Bona US Professional online: Website: https://www1.bona.com/en-us/professional/ Subscribe on YouTube: https://www.youtube.com/BonaProfessional Facebook: https://www.facebook.com/bonauspro/ Instagram: https://www.instagram.com/bonapro.us/
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Hello and welcome to another episode
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of On the Floor with Wayne and Rob.
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I'm Wayne Highlander with Bona Adhesives.
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We're doing Rob.
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Oh, I got a text message from you,
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and I'm sorry I didn't respond
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till the next day.
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Especially after you sent me a message
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like that.
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Can I read your.
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What happened?
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Oh, the the the.
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Are you talking about the hockey game?
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Yeah.
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That was pretty awesome.
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You know, I did, and I and, here's how.
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How much of a hockey fan I'm not is.
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I just was watching TV
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and came across him. Oh.
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The hockey game, I suppose.
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It's,
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Oh, that's right, it's a gold medal game.
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So, and, it was 3 minutes
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or 4 minutes into the game
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when I turned it on
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and it was incredible.
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There's a,
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And it says so much
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about the Canadians that, you know,
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it means more going
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through the Canadians than anybody else
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because they're so good.
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They're so talented.
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There's a team.
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And I, man,
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it was both played
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their their hearts out
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and could have went either way,
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but it went, the USA's way.
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And, I thought it was a fantastic game
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and just the spirit of the game, the.
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You know what I mean?
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That's the way sports is.
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There's no money,
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and it's just this love of the sport
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and the competition. It was awesome.
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Yeah.
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Well.
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Of course.
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Yeah.
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Yeah.
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Yeah.
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Yeah.
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I don't think you can say that.
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That was like.
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Okay, that
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that led to the strategy of why we won.
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You know what I mean?
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Because it the game is so close.
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I mean, after
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it was tied after three periods, right.
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Okay.
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Yeah.
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Yeah.
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I mean, it's a hit.
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Yeah.
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Yeah.
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Yeah.
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Yeah.
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Yeah.
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That's a.
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A lot of shots on goal for sure.
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I, when they brought out
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the two kids at the end,
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that was pretty damn special, man.
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And, I don't care what side of the coin
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you're on.
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Yeah.
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That was pretty special.
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The, vaguely guy.
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And I'm going to take this thing off
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my head now, cause
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I don't know where it's too.
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I don't know where.
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Headbands, but
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but no, we go ahead and tell me.
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Man.
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Oh my gosh.
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You kidding?
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Yeah.
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Well, I know he.
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Yeah.
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Yeah.
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100%.
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Yeah.
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Yeah.
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Yeah.
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Yeah. Good deal.
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Hey, you sent me a text message.
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Go ahead.
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Right.
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Yeah.
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Sports illustrated now, that from 1980.
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And you.
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You. I'll be darned.
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Wow, that's pretty cool.
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And you saved that from then?
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From that date, you didn't. Wow.
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Pretty pretty slick.
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Wow.
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Wow.
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Even before it.
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I'll give you 30 bucks for it.
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Wow.
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All right, before you get.
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Yeah.
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Yeah.
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All right,
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before we get on to our show,
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we're going to get down
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real quick and everything.
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Do you mind if I share the.
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The text you sent with me
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sent me over the week?
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All right.
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Yeah, well,
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well, Rob sent me a, text message of him
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and a gymnasium floor being coated,
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and his text is.
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I think I'm
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one of the luckiest guys in the world.
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I get a wake up every day,
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put uncomfortable work boots in a clean
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pressed uniform,
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go to my job and teach guys how to do man
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s*** all day
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and get up and do it again.
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Yes, I know the wife and family too, but
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work wise
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and no one's got it better than me.
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Trained a gym crew today on set.
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You went fantastic.
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So, Pretty.
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I love the guy.
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Loves the job. Man is awesome. Yeah.
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Pretty cool.
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All right.
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You and I never get it.
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We never go
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do a deep dive on stuff like this, and,
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I don't even know how
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we're going to do this.
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I think you just take it
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one step at a time, and it's going to be
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maybe complicated a little bit,
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but we'll try to, go slow here.
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And,
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I think one of the mistakes
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that contractors make sometimes.
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Listen, first of all,
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not giving advice.
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Me and Rob are not accountants, CPAs,
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financial advisors,
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and any stretch of imagination.
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But.
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And I think we've made all these mistakes
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that we're talking about here.
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So we're nothing.
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We're not preaching,
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you know, above anybody.
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But oftentimes contractors
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kind of get it backwards.
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And they, they,
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they want growth for growth sake.
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You know,
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I want to get more business,
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more jobs, more crews, more revenue,
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and then try to figure out
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if it's profitable
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or how to make it profitable.
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So I think we're going to talk today
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about, markup versus margin
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and your markup factor on jobs
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and that type of stuff.
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Okay.
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Okay.
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Yeah.
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Yeah.
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Yeah.
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Yeah.
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And, the book is called Profit First
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for contractors,
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and I'm holding it up now.
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And, profit
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first by by Sean Van Dike D wiki.
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And, that was it.
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International building,
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international Builder show last week
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and, I bought a couple
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books for the ride home.
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One of the other is, is called
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the Service Culture Handbook.
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Yeah. It's okay.
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But,
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this one I thought was really good.
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Then I started more.
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I started thinking about it.
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And what I like
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about what this guy is proposing
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is, really different than most
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anybody ever, that I've ever known.
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As approached
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how to make your company profitable.
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And one thing he says,
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and I'll get into this later, is,
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to open up five different
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checking accounts
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and, set up five different
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chain accounts for your business.
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One is your is for income,
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two is for profit,
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three is for the owner's compensation,
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four is for taxes
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and five is for operating expenses.
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But the one that for profit,
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even if you only start out at 1% profit,
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make sure that you pay that.
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And and you don't,
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you make sure you pay those in order.
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But.
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Well, I don't want to get too far ahead.
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I'll get into that a little bit later
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and stop me
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Rob that from from going
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too fast or whatever.
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So.
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All right.
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So, again.
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Well,
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you know, this is
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this is it's not that it's that exact.
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It actually is not complicated.
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It's really not that complicated.
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But we don't sometimes take the time to.
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Yeah, it's it's.
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And if
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and if none of this works out,
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I do have a separate retirement plan.
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We can talk about.
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So don't let me forget to go over there
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to go over that plan, okay?
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No.
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All right.
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Mark up in and, margins.
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They're not interchangeable words
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for one.
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And I'm just I'm just going to read off
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the bullet points
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of the notes that I took. Okay.
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And actually, somebody,
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if they wanted to email me,
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I can just send them these notes.
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If it if it helps.
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This gentleman says if you could
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teach only one thing
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that would make a difference.
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It would be the difference
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between these two.
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If you just teach one thing in business,
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it would be the difference
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between markup and margin.
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Markup is the
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amount of money
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you add to your cost of goods.
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Whenever you see
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cost of goods
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in a business book,
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it's usually, expresses,
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just cogs
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and capital letters, cost of goods.
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So markup is the amount of money
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you add to your cost of goods
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to determine your price.
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Margin is the space between your price
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or income and your cost of goods.
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So on your profit and loss statement,
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it will get into profit and loss.
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00:15:30,162 --> 00:15:31,330
A little bit later,
291
00:15:31,330 --> 00:15:34,633
you'll see a line before your line
292
00:15:34,633 --> 00:15:35,501
below your total
293
00:15:35,501 --> 00:15:38,504
cost of goods, called gross profit.
294
00:15:39,905 --> 00:15:42,908
Gross profit equals income
295
00:15:44,109 --> 00:15:46,745
minus your cost of goods
296
00:15:46,745 --> 00:15:47,813
and even cost of goods.
297
00:15:47,813 --> 00:15:48,347
We'll get into
298
00:15:48,347 --> 00:15:49,982
what is actually cost of goods versus
299
00:15:49,982 --> 00:15:51,216
what is an actual expense
300
00:15:51,216 --> 00:15:51,951
for your business.
301
00:15:51,951 --> 00:15:53,185
Okay,
302
00:15:53,185 --> 00:15:55,220
so the gross profit is all the money
303
00:15:55,220 --> 00:15:57,790
you have left to pay for your expenses
304
00:15:59,325 --> 00:16:02,328
and have a net profit left over.
305
00:16:02,328 --> 00:16:03,429
It's going to get a little bit
306
00:16:03,429 --> 00:16:05,197
more interesting here in a minute.
307
00:16:05,197 --> 00:16:07,466
The.
308
00:16:07,466 --> 00:16:10,469
So.
309
00:16:16,075 --> 00:16:16,608
Yeah.
310
00:16:16,608 --> 00:16:16,976
Yeah.
311
00:16:16,976 --> 00:16:19,979
312
00:16:21,847 --> 00:16:24,850
Yes.
313
00:16:28,120 --> 00:16:28,854
Oh there you go.
314
00:16:28,854 --> 00:16:31,857
315
00:16:35,527 --> 00:16:36,829
That's,
316
00:16:36,829 --> 00:16:38,797
317
00:16:38,797 --> 00:16:39,398
All right,
318
00:16:39,398 --> 00:16:42,067
so the gross profit is all the money
319
00:16:42,067 --> 00:16:44,269
you have left to pay for your expenses
320
00:16:44,269 --> 00:16:46,271
and have a net profit left over
321
00:16:46,271 --> 00:16:49,274
the gross profit is your gross margin.
322
00:16:49,308 --> 00:16:50,142
Whether your gross
323
00:16:50,142 --> 00:16:51,977
margin profit is enough to pay
324
00:16:51,977 --> 00:16:53,579
for all your expenses
325
00:16:53,579 --> 00:16:56,048
and leave you with enough profit.
326
00:16:56,048 --> 00:16:56,648
Excuse me?
327
00:16:56,648 --> 00:16:58,684
Leave you with
328
00:16:58,684 --> 00:17:00,419
enough of a net profit to run
329
00:17:00,419 --> 00:17:00,953
a sustainable
330
00:17:00,953 --> 00:17:02,287
business is yet to be determined.
331
00:17:02,287 --> 00:17:03,956
Okay, so we'll look at that.
332
00:17:03,956 --> 00:17:04,523
So listen to
333
00:17:04,523 --> 00:17:05,657
what your margin needs
334
00:17:05,657 --> 00:17:06,759
to be in the markup that
335
00:17:06,759 --> 00:17:08,093
will yield that margin
336
00:17:09,595 --> 00:17:11,663
if you take a look it's simple math okay.
337
00:17:11,663 --> 00:17:15,467
So let's take $100 for example.
338
00:17:16,035 --> 00:17:19,038
You buy something that costs you $100.
339
00:17:19,438 --> 00:17:22,441
You mark up the cost by 20%.
340
00:17:22,808 --> 00:17:23,042
All right.
341
00:17:23,042 --> 00:17:23,876
So let's say that
342
00:17:23,876 --> 00:17:25,778
that you wood flooring for instance,
343
00:17:25,778 --> 00:17:26,879
it's it's $100.
344
00:17:26,879 --> 00:17:27,913
Now we know that
345
00:17:27,913 --> 00:17:29,214
you know what's more expensive than that
346
00:17:29,214 --> 00:17:29,748
blah blah blah.
347
00:17:29,748 --> 00:17:30,749
But let's take hundred dollars
348
00:17:30,749 --> 00:17:31,984
for example.
349
00:17:31,984 --> 00:17:33,519
You buy something,
350
00:17:33,519 --> 00:17:35,921
your wood flooring costs 100 bucks,
351
00:17:35,921 --> 00:17:38,891
and you mark up the cost by 20%,
352
00:17:38,891 --> 00:17:41,393
and you sell that for $120.
353
00:17:41,393 --> 00:17:42,594
Okay?
354
00:17:42,594 --> 00:17:45,597
So.
355
00:17:50,069 --> 00:17:51,703
Well maybe maybe not.
356
00:17:51,703 --> 00:17:52,704
You don't know what your markup
357
00:17:52,704 --> 00:17:55,707
factor is yet. Okay.
358
00:17:55,808 --> 00:17:56,375
All right.
359
00:17:56,375 --> 00:17:57,743
So all right.
360
00:17:57,743 --> 00:18:00,813
So again you take this example $100.
361
00:18:00,813 --> 00:18:02,047
You buy something for you buy
362
00:18:02,047 --> 00:18:03,515
the wood for $100.
363
00:18:03,515 --> 00:18:06,085
You markup that cost by 20%.
364
00:18:06,085 --> 00:18:09,088
And you sell that for $180 okay.
365
00:18:09,354 --> 00:18:10,189
So price
366
00:18:11,156 --> 00:18:12,224
price that price
367
00:18:12,224 --> 00:18:15,227
equals cost times markup factor.
368
00:18:15,227 --> 00:18:19,098
It's equals $120 as 100 times .12.
369
00:18:19,331 --> 00:18:20,933
Okay.
370
00:18:20,933 --> 00:18:23,936
If the if the cost of your thing was $100
371
00:18:24,203 --> 00:18:26,638
and you sold it for $120,
372
00:18:26,638 --> 00:18:29,308
then your gross profit is $20.
373
00:18:29,308 --> 00:18:29,575
Okay.
374
00:18:29,575 --> 00:18:30,776
So the gross profit equals
375
00:18:30,776 --> 00:18:33,779
a price minus costs okay.
376
00:18:33,879 --> 00:18:36,882
So the price is $100 minus the cost,
377
00:18:37,216 --> 00:18:40,986
equals $120 is $100.
378
00:18:40,986 --> 00:18:43,155
Okay.
379
00:18:43,155 --> 00:18:44,223
But here's a mistake.
380
00:18:44,223 --> 00:18:45,090
And this is what I'm getting
381
00:18:45,090 --> 00:18:46,558
at right here.
382
00:18:46,558 --> 00:18:48,060
Here's a mistake that most construction
383
00:18:48,060 --> 00:18:49,895
businesses owners make.
384
00:18:49,895 --> 00:18:50,996
They say something like,
385
00:18:50,996 --> 00:18:53,899
I marked up my cost by 20%.
386
00:18:53,899 --> 00:18:56,902
Therefore I made a 20% profit.
387
00:18:57,035 --> 00:18:57,803
All right.
388
00:18:57,803 --> 00:18:59,071
That sounds very reasonable, right?
389
00:18:59,071 --> 00:19:01,707
I've marked up my cost by 20%.
390
00:19:01,707 --> 00:19:03,475
All right. He took the wood. Is $100.
391
00:19:03,475 --> 00:19:04,743
He marked it by 20%.
392
00:19:04,743 --> 00:19:07,112
So he thinks I made a 20% profit.
393
00:19:08,480 --> 00:19:10,916
This is not correct.
394
00:19:10,916 --> 00:19:11,617
This is wrong.
395
00:19:11,617 --> 00:19:13,352
You didn't make 20% profit.
396
00:19:13,352 --> 00:19:16,355
You made a 16.7% gross profit,
397
00:19:17,089 --> 00:19:18,624
okay?
398
00:19:18,624 --> 00:19:20,425
You don't sell your cost.
399
00:19:20,425 --> 00:19:23,395
You sell your price.
400
00:19:24,062 --> 00:19:25,464
Okay.
401
00:19:25,464 --> 00:19:25,898
In order
402
00:19:25,898 --> 00:19:27,499
to determine the margin
403
00:19:27,499 --> 00:19:29,635
in this $100 example,
404
00:19:29,635 --> 00:19:32,604
you take your gross profit of $20
405
00:19:33,005 --> 00:19:35,274
and divide by the price of 120,
406
00:19:35,274 --> 00:19:38,277
not the cost of $100.
407
00:19:38,343 --> 00:19:41,280
See the difference?
408
00:19:41,280 --> 00:19:44,116
Okay.
409
00:19:44,116 --> 00:19:46,885
Okay.
410
00:19:46,885 --> 00:19:49,855
So you're taking the hut?
411
00:19:50,889 --> 00:19:51,924
Yeah.
412
00:19:51,924 --> 00:19:54,593
You're marking up your market up to $100
413
00:19:54,593 --> 00:19:57,563
by 20%, right?
414
00:19:58,230 --> 00:19:59,298
Yeah.
415
00:19:59,298 --> 00:20:02,834
So in this case,
416
00:20:03,068 --> 00:20:04,970
what you do is you take,
417
00:20:04,970 --> 00:20:07,973
you take the $120.
418
00:20:11,043 --> 00:20:11,910
Okay.
419
00:20:11,910 --> 00:20:14,913
And then do your math on that instead.
420
00:20:17,783 --> 00:20:20,786
Makes it.
421
00:20:21,820 --> 00:20:23,889
So.
422
00:20:23,889 --> 00:20:24,323
Okay.
423
00:20:24,323 --> 00:20:27,326
So so.
424
00:20:28,260 --> 00:20:28,660
Okay.
425
00:20:28,660 --> 00:20:31,663
Do 120 divided by divide
426
00:20:31,730 --> 00:20:34,733
by, 100.
427
00:20:54,386 --> 00:20:56,488
No no no no.
428
00:20:56,488 --> 00:20:59,491
So.
429
00:21:00,926 --> 00:21:02,394
You do, you do, you do.
430
00:21:02,394 --> 00:21:05,731
In order to determine it, you take your.
431
00:21:08,100 --> 00:21:10,269
Hold on.
432
00:21:10,269 --> 00:21:11,336
No.
433
00:21:11,336 --> 00:21:12,771
You.
434
00:21:12,771 --> 00:21:14,172
In order to turn the margin
435
00:21:14,172 --> 00:21:14,906
in this hundred dollars
436
00:21:14,906 --> 00:21:15,274
example,
437
00:21:15,274 --> 00:21:18,176
you take your gross profit of $20
438
00:21:18,176 --> 00:21:20,512
and divide by the price of 120,
439
00:21:20,512 --> 00:21:23,515
not the cost of $100.
440
00:21:23,715 --> 00:21:25,651
Okay,
441
00:21:25,651 --> 00:21:29,955
so you do $20.20 by $120.
442
00:21:29,955 --> 00:21:30,922
Do that.
443
00:21:30,922 --> 00:21:33,925
You should be 16.7.
444
00:21:34,159 --> 00:21:35,761
Yeah.
445
00:21:35,761 --> 00:21:38,764
Okay.
446
00:21:38,897 --> 00:21:39,264
Yeah.
447
00:21:39,264 --> 00:21:41,366
Which is 16.7.
448
00:21:41,366 --> 00:21:43,869
So that 20% markup you did yields
449
00:21:43,869 --> 00:21:46,872
at 60.
450
00:21:47,005 --> 00:21:49,975
It's 16.7.
451
00:21:52,244 --> 00:21:55,247
Yes.
452
00:21:57,115 --> 00:21:57,416
Hang on.
453
00:21:57,416 --> 00:22:00,419
Let me get my calculator.
454
00:22:05,524 --> 00:22:09,895
61.8.166667
455
00:22:09,895 --> 00:22:12,898
which is basically 16.7.
456
00:22:15,434 --> 00:22:16,568
Don't get hung up on a
457
00:22:16,568 --> 00:22:19,705
on a on a on a fraction of a percent.
458
00:22:29,114 --> 00:22:32,117
For.
459
00:22:32,250 --> 00:22:35,253
Oh, gosh.
460
00:22:36,855 --> 00:22:39,858
You got second.
461
00:22:41,293 --> 00:22:44,296
So this is telling you that
462
00:22:48,834 --> 00:22:51,203
Yes.
463
00:22:51,203 --> 00:22:52,003
Yeah.
464
00:22:52,003 --> 00:22:52,304
All right.
465
00:22:52,304 --> 00:22:55,273
So so great.
466
00:22:55,273 --> 00:22:56,141
Okay.
467
00:22:56,141 --> 00:22:57,542
But here's the thing.
468
00:22:57,542 --> 00:22:58,844
That might be okay.
469
00:22:58,844 --> 00:22:59,644
That might be all
470
00:22:59,644 --> 00:23:01,713
your business needs to pay
471
00:23:01,713 --> 00:23:03,949
for your cost of goods and your expenses
472
00:23:03,949 --> 00:23:05,517
and all the other thing, your taxes
473
00:23:05,517 --> 00:23:07,619
and everything, all your overhead
474
00:23:07,619 --> 00:23:08,453
and make a profit.
475
00:23:08,453 --> 00:23:11,089
But you don't know that. Yeah, okay.
476
00:23:11,089 --> 00:23:14,059
But at first you have to determine
477
00:23:14,059 --> 00:23:14,726
how to figure
478
00:23:14,726 --> 00:23:15,961
what the what
479
00:23:15,961 --> 00:23:17,496
the difference between markup and margin
480
00:23:17,496 --> 00:23:19,564
and how to get it. Okay.
481
00:23:19,564 --> 00:23:21,199
So in the first example he goes
482
00:23:21,199 --> 00:23:23,602
oh I'm just going to mark it up by 20%.
483
00:23:23,602 --> 00:23:26,605
And he thinks, oh I've got a 20% profit.
484
00:23:26,805 --> 00:23:28,039
Okay.
485
00:23:28,039 --> 00:23:31,009
So now to
486
00:23:31,276 --> 00:23:31,977
to determine
487
00:23:31,977 --> 00:23:33,178
what the difference
488
00:23:33,178 --> 00:23:33,612
between that
489
00:23:33,612 --> 00:23:37,249
and margin is, it, you take the $100
490
00:23:37,416 --> 00:23:38,016
in this example,
491
00:23:38,016 --> 00:23:39,418
take $200,
492
00:23:39,418 --> 00:23:42,087
you take the gross profit of $20
493
00:23:42,087 --> 00:23:42,621
and divide
494
00:23:42,621 --> 00:23:44,756
that by the price of $120,
495
00:23:44,756 --> 00:23:46,892
not the cost of $100.
496
00:23:46,892 --> 00:23:47,359
Okay.
497
00:23:47,359 --> 00:23:50,061
So now you're sitting with a 16.7 margin.
498
00:23:50,061 --> 00:23:51,329
Okay.
499
00:23:51,329 --> 00:23:52,497
If you make the mistake
500
00:23:52,497 --> 00:23:54,433
dividing by the cost
501
00:23:54,433 --> 00:23:55,634
instead of the price.
502
00:23:55,634 --> 00:23:58,203
So that's what we did. You divide it
503
00:23:59,304 --> 00:24:00,839
when you just do the percentage.
504
00:24:00,839 --> 00:24:01,973
You just did it by the cost
505
00:24:01,973 --> 00:24:03,175
instead of the price.
506
00:24:03,175 --> 00:24:05,944
When you determine your what's required,
507
00:24:05,944 --> 00:24:06,778
markup for your work,
508
00:24:06,778 --> 00:24:09,181
then you'll be losing money.
509
00:24:09,181 --> 00:24:09,381
Okay.
510
00:24:09,381 --> 00:24:11,383
Let me say that again a little bit better
511
00:24:11,383 --> 00:24:12,951
if you make the mistake
512
00:24:12,951 --> 00:24:15,954
dividing the cost instead of the price
513
00:24:16,455 --> 00:24:18,056
when determining the required markup
514
00:24:18,056 --> 00:24:18,824
for your work,
515
00:24:18,824 --> 00:24:20,525
then you will be losing money.
516
00:24:20,525 --> 00:24:21,393
Okay?
517
00:24:21,393 --> 00:24:24,129
A 20% markup does not yield
518
00:24:24,129 --> 00:24:27,132
a 20% margin.
519
00:24:27,699 --> 00:24:30,702
I think that's the biggest takeaway.
520
00:24:30,735 --> 00:24:32,671
Okay.
521
00:24:32,671 --> 00:24:35,607
If you if you need a 20% margin
522
00:24:35,607 --> 00:24:36,908
to pay for your expenses
523
00:24:36,908 --> 00:24:38,877
and leave you with a net profit,
524
00:24:38,877 --> 00:24:40,078
then you will need to markup
525
00:24:40,078 --> 00:24:43,081
the cost of goods by 25%.
526
00:24:44,449 --> 00:24:47,419
Okay, so.
527
00:24:47,819 --> 00:24:50,822
Okay.
528
00:24:50,956 --> 00:24:51,289
Okay.
529
00:24:51,289 --> 00:24:52,724
So
530
00:24:52,724 --> 00:24:55,727
okay.
531
00:24:55,727 --> 00:24:56,862
Yeah.
532
00:24:56,862 --> 00:24:59,865
That's a.
533
00:24:59,865 --> 00:25:00,131
Yeah.
534
00:25:00,131 --> 00:25:02,467
So so so that the markup factored.
535
00:25:21,887 --> 00:25:24,122
There you go.
536
00:25:24,122 --> 00:25:27,125
So.
537
00:25:29,895 --> 00:25:32,063
Yeah.
538
00:25:32,063 --> 00:25:32,864
Okay.
539
00:25:32,864 --> 00:25:35,867
So the cost of goods equals $100.
540
00:25:35,901 --> 00:25:36,501
In this case,
541
00:25:36,501 --> 00:25:39,538
your markup factor equals 1.25.
542
00:25:39,871 --> 00:25:41,506
So price equals
543
00:25:41,506 --> 00:25:44,676
$100 times 1.25 is hundred and $25.
544
00:25:45,176 --> 00:25:46,344
Gross profit
545
00:25:46,344 --> 00:25:49,347
equals price minus cost of goods
546
00:25:49,581 --> 00:25:52,350
equals a 125 -$100.
547
00:25:52,350 --> 00:25:54,219
Equal 25 margin.
548
00:25:54,219 --> 00:25:57,289
Equal gross profit divided by price
549
00:25:57,289 --> 00:26:00,292
equal 20%.
550
00:26:08,900 --> 00:26:10,669
Well, yes.
551
00:26:10,669 --> 00:26:11,870
Yes. You got to know what?
552
00:26:11,870 --> 00:26:14,873
Yes, yes.
553
00:26:18,209 --> 00:26:18,710
Yes.
554
00:26:18,710 --> 00:26:21,313
If you go to
555
00:26:21,313 --> 00:26:24,082
that profit first contract, your.com,
556
00:26:24,082 --> 00:26:27,085
there's, there's a PDF you can download.
557
00:26:27,686 --> 00:26:28,520
You can take it with you,
558
00:26:28,520 --> 00:26:29,421
take a photo of it,
559
00:26:29,421 --> 00:26:30,922
print it out to your computer,
560
00:26:30,922 --> 00:26:32,490
what have you.
561
00:26:32,490 --> 00:26:35,493
So there you go.
562
00:26:36,695 --> 00:26:38,930
Dot profit
563
00:26:38,930 --> 00:26:41,933
first contractor.com.
564
00:26:48,907 --> 00:26:51,910
And no.
565
00:26:52,410 --> 00:26:54,613
That's right.
566
00:26:54,613 --> 00:26:55,180
All right.
567
00:26:55,180 --> 00:26:56,681
So again, your margin
568
00:26:56,681 --> 00:26:58,049
or your gross profit is the
569
00:26:58,049 --> 00:26:59,851
space between your price,
570
00:27:01,052 --> 00:27:02,988
your income and your cost of goods.
571
00:27:02,988 --> 00:27:04,222
This space needs to be larger
572
00:27:04,222 --> 00:27:06,057
than your expenses if it is.
573
00:27:06,057 --> 00:27:07,692
And you what's your net profit?
574
00:27:07,692 --> 00:27:09,861
Okay.
575
00:27:09,861 --> 00:27:11,363
So the most important equation
576
00:27:11,363 --> 00:27:11,930
you need to know
577
00:27:11,930 --> 00:27:14,299
if your business is price
578
00:27:14,299 --> 00:27:17,402
equals cost times the markup factor
579
00:27:18,770 --> 00:27:19,070
okay.
580
00:27:19,070 --> 00:27:20,205
So you got to know what all
581
00:27:20,205 --> 00:27:22,540
what all your all your overhead is.
582
00:27:22,540 --> 00:27:23,541
We'll get into that in a minute.
583
00:27:23,541 --> 00:27:25,910
All your expenses and everything.
584
00:27:25,910 --> 00:27:27,145
And,
585
00:27:27,145 --> 00:27:28,113
then you determine what
586
00:27:28,113 --> 00:27:29,681
your markup factor is,
587
00:27:29,681 --> 00:27:30,015
all right,
588
00:27:30,015 --> 00:27:32,350
the price of any of your projects,
589
00:27:32,350 --> 00:27:33,652
of any of your projects, you know,
590
00:27:33,652 --> 00:27:34,786
and you give a bin out to somebody,
591
00:27:34,786 --> 00:27:35,887
the price of your project
592
00:27:35,887 --> 00:27:37,722
is the sum of your cost
593
00:27:37,722 --> 00:27:38,990
of the project
594
00:27:38,990 --> 00:27:41,993
multiplied by the markup factor.
595
00:27:43,662 --> 00:27:45,096
The markup needs to be high enough
596
00:27:45,096 --> 00:27:46,731
to pay for your expenses
597
00:27:46,731 --> 00:27:48,199
and leave you with a net profit. Okay.
598
00:27:50,802 --> 00:27:51,536
So your cost of
599
00:27:51,536 --> 00:27:52,771
goods for your business
600
00:27:52,771 --> 00:27:54,839
is typically the cost of your labor,
601
00:27:54,839 --> 00:27:56,708
your material, your subcontractors,
602
00:27:56,708 --> 00:27:58,209
if you have them in equipment.
603
00:27:58,209 --> 00:27:59,544
These are things that you
604
00:27:59,544 --> 00:28:00,745
got out to the jobsite
605
00:28:00,745 --> 00:28:02,247
and you left them on the job site.
606
00:28:02,247 --> 00:28:04,449
The flooring, the finishes, the material,
607
00:28:04,449 --> 00:28:06,985
the sandpaper and all that stuff. Right?
608
00:28:06,985 --> 00:28:09,821
So if it's not a cost of goods,
609
00:28:09,821 --> 00:28:12,424
then it's classified as an expense.
610
00:28:12,424 --> 00:28:14,526
Those are two separate items altogether.
611
00:28:14,526 --> 00:28:15,260
Okay.
612
00:28:15,260 --> 00:28:17,362
The difference between cost of goods
613
00:28:17,362 --> 00:28:19,197
and an expense
614
00:28:19,197 --> 00:28:21,766
is a simple way to determine that.
615
00:28:21,766 --> 00:28:24,502
If you buy it, mark it up
616
00:28:24,502 --> 00:28:26,237
and sell it to your customers
617
00:28:26,237 --> 00:28:28,707
and it gets left out in the field
618
00:28:28,707 --> 00:28:29,908
like flooring, the in
619
00:28:29,908 --> 00:28:31,276
this case is always going to be flooring.
620
00:28:31,276 --> 00:28:32,343
What have you.
621
00:28:32,343 --> 00:28:33,478
It's it's it's
622
00:28:33,478 --> 00:28:35,714
most likely a cost of goods. Okay.
623
00:28:38,116 --> 00:28:39,517
Yeah.
624
00:28:39,517 --> 00:28:40,351
Yeah.
625
00:28:40,351 --> 00:28:41,853
For example you buy the material
626
00:28:41,853 --> 00:28:43,421
let's say some flooring for your work.
627
00:28:43,421 --> 00:28:44,089
You mark them up,
628
00:28:44,089 --> 00:28:45,623
you send your customers those materials.
629
00:28:45,623 --> 00:28:47,325
There's they're all cost of goods.
630
00:28:47,325 --> 00:28:49,260
Same things applies to your labor.
631
00:28:49,260 --> 00:28:50,495
It's the cost of goods.
632
00:28:50,495 --> 00:28:53,131
You air quotes by labor
633
00:28:53,131 --> 00:28:54,032
from your employees.
634
00:28:54,032 --> 00:28:54,999
You mark it up and sell
635
00:28:54,999 --> 00:28:56,167
to your customers.
636
00:28:56,167 --> 00:28:58,536
Labor is a cost of good, right?
637
00:28:58,536 --> 00:28:59,904
These things
638
00:28:59,904 --> 00:29:01,206
are the result of these things.
639
00:29:01,206 --> 00:29:02,540
Was subcontractors.
640
00:29:02,540 --> 00:29:03,141
Any equipment,
641
00:29:03,141 --> 00:29:06,144
whatever is considered cost of goods.
642
00:29:06,244 --> 00:29:09,247
Okay, what about cell phones?
643
00:29:09,347 --> 00:29:11,349
You don't sell your cell phones,
644
00:29:11,349 --> 00:29:12,684
but you certainly need a cell phone
645
00:29:12,684 --> 00:29:14,285
to operate your business
646
00:29:14,285 --> 00:29:15,286
since you don't buy it
647
00:29:15,286 --> 00:29:18,022
and mark it up and sell cell phones.
648
00:29:18,022 --> 00:29:18,556
That money
649
00:29:18,556 --> 00:29:19,357
you spend on your cell
650
00:29:19,357 --> 00:29:20,458
phone is an expense.
651
00:29:21,760 --> 00:29:23,261
It's not a cost of good, okay?
652
00:29:23,261 --> 00:29:24,929
It's just an expense.
653
00:29:24,929 --> 00:29:26,231
Another example is food.
654
00:29:26,231 --> 00:29:27,398
For instance,
655
00:29:27,398 --> 00:29:29,167
if you take customers out for lunch
656
00:29:29,167 --> 00:29:30,335
or whatever
657
00:29:30,335 --> 00:29:31,603
those type of things,
658
00:29:31,603 --> 00:29:33,404
you know, you're not marking that up.
659
00:29:33,404 --> 00:29:35,173
You're not selling it to them, but,
660
00:29:35,173 --> 00:29:35,840
you know, it
661
00:29:35,840 --> 00:29:37,342
maybe generates
662
00:29:37,342 --> 00:29:39,177
business or income for your business
663
00:29:39,177 --> 00:29:39,644
or whatever.
664
00:29:39,644 --> 00:29:41,713
So, it's an expense.
665
00:29:41,713 --> 00:29:43,181
It's not, cost of goods.
666
00:29:43,181 --> 00:29:44,949
Okay.
667
00:29:44,949 --> 00:29:47,952
Got it.
668
00:29:53,591 --> 00:29:56,594
Yeah.
669
00:29:59,130 --> 00:29:59,397
That's.
670
00:29:59,397 --> 00:30:00,331
Yeah.
671
00:30:00,331 --> 00:30:00,765
That's an it.
672
00:30:00,765 --> 00:30:02,200
Oh it's an expense
673
00:30:02,200 --> 00:30:03,935
because you're not selling your,
674
00:30:03,935 --> 00:30:05,503
your your gas. Right.
675
00:30:05,503 --> 00:30:08,506
You're not marking it up and selling it.
676
00:30:08,540 --> 00:30:11,543
So at.
677
00:30:17,248 --> 00:30:20,251
Yes.
678
00:30:20,351 --> 00:30:23,354
Correct.
679
00:30:26,691 --> 00:30:29,694
Yeah.
680
00:30:29,794 --> 00:30:31,262
Yeah.
681
00:30:31,262 --> 00:30:34,265
Yeah.
682
00:30:35,300 --> 00:30:36,501
Okay.
683
00:30:36,501 --> 00:30:38,102
Now let's, let's define the markup.
684
00:30:38,102 --> 00:30:41,105
Now.
685
00:30:41,439 --> 00:30:42,941
The markup is the amount of money
686
00:30:42,941 --> 00:30:44,909
that you add to your cost of goods
687
00:30:44,909 --> 00:30:46,778
to determine your price.
688
00:30:46,778 --> 00:30:49,214
The markup is often expressed as an IT
689
00:30:49,214 --> 00:30:50,248
as a percentage.
690
00:30:50,248 --> 00:30:50,815
For example,
691
00:30:50,815 --> 00:30:51,783
let's say that your estimated
692
00:30:51,783 --> 00:30:53,484
your cost of goods to be $100.
693
00:30:54,752 --> 00:30:56,054
And you and you want to
694
00:30:56,054 --> 00:30:59,057
add a 50% markup to calculate your price,
695
00:30:59,524 --> 00:31:02,527
you would multiply $100 by 50%.
696
00:31:02,560 --> 00:31:03,828
And then the product
697
00:31:03,828 --> 00:31:04,429
of that form
698
00:31:04,429 --> 00:31:05,363
into your cost of goods
699
00:31:05,363 --> 00:31:07,665
and your price of $150.
700
00:31:07,665 --> 00:31:09,901
So basically you go to step one is $100
701
00:31:09,901 --> 00:31:12,904
times 0.50 equals $50.
702
00:31:12,904 --> 00:31:14,439
Step two is just do
703
00:31:14,439 --> 00:31:17,442
$50 plus 100 equals $150.
704
00:31:18,309 --> 00:31:19,777
That would determine your markup,
705
00:31:19,777 --> 00:31:21,446
but you don't have to do it
706
00:31:21,446 --> 00:31:23,047
in two steps like that.
707
00:31:23,047 --> 00:31:24,415
Maybe I've made it more complicated.
708
00:31:24,415 --> 00:31:26,184
It had to be,
709
00:31:26,184 --> 00:31:30,121
you could eliminate a step, and,
710
00:31:30,121 --> 00:31:32,390
see, instead of multiplying
711
00:31:32,390 --> 00:31:33,858
the cost of goods by the markup
712
00:31:33,858 --> 00:31:34,859
and then adding that number
713
00:31:34,859 --> 00:31:36,027
back to the cost of goods,
714
00:31:36,027 --> 00:31:37,762
which is a two step process,
715
00:31:37,762 --> 00:31:39,530
we can simply multiply
716
00:31:39,530 --> 00:31:41,532
the cost of goods by the markup factor.
717
00:31:42,834 --> 00:31:44,535
We haven't determined what that is yet.
718
00:31:44,535 --> 00:31:45,837
Okay.
719
00:31:45,837 --> 00:31:47,605
And get the same result in one step.
720
00:31:47,605 --> 00:31:49,240
For example, using the same numbers
721
00:31:49,240 --> 00:31:50,174
as we
722
00:31:50,174 --> 00:31:50,742
use earlier
723
00:31:50,742 --> 00:31:52,977
and the cost of goods is $100,
724
00:31:52,977 --> 00:31:55,813
our markup factor is 50%.
725
00:31:55,813 --> 00:31:59,384
All we have to do is do $100 times 1.5.
726
00:32:00,351 --> 00:32:01,653
Okay.
727
00:32:01,653 --> 00:32:04,289
This
728
00:32:04,289 --> 00:32:06,190
to get to the, the 150.
729
00:32:06,190 --> 00:32:08,359
That makes sense.
730
00:32:08,359 --> 00:32:09,794
Okay.
731
00:32:09,794 --> 00:32:10,595
So again, net
732
00:32:10,595 --> 00:32:11,930
profit is the money that remains
733
00:32:11,930 --> 00:32:12,997
after the cost of goods
734
00:32:12,997 --> 00:32:14,265
and expenses are deducted.
735
00:32:14,265 --> 00:32:15,600
So that formula is net
736
00:32:15,600 --> 00:32:17,368
profit equals income minus
737
00:32:17,368 --> 00:32:20,371
cost of goods minus expenses.
738
00:32:21,172 --> 00:32:22,473
Now there's something very interesting
739
00:32:22,473 --> 00:32:23,641
when you talk to an accountants
740
00:32:23,641 --> 00:32:25,643
that I got out of this book
741
00:32:25,643 --> 00:32:27,845
and that most construction companies
742
00:32:27,845 --> 00:32:30,548
get wrong when it comes to CPAs.
743
00:32:30,548 --> 00:32:31,649
Worse.
744
00:32:31,649 --> 00:32:33,318
And, get to this a little bit later on.
745
00:32:33,318 --> 00:32:34,218
But it was, it was
746
00:32:34,218 --> 00:32:35,853
I found it to be very interesting
747
00:32:36,888 --> 00:32:39,891
where, you know,
748
00:32:39,891 --> 00:32:42,060
most owners take a draw from the company,
749
00:32:42,060 --> 00:32:43,828
not a salary,
750
00:32:43,828 --> 00:32:45,697
but at the end of the day,
751
00:32:45,697 --> 00:32:46,998
it does on the balance sheet.
752
00:32:46,998 --> 00:32:49,634
It doesn't give you a really accurate
753
00:32:49,634 --> 00:32:51,703
look at at your,
754
00:32:51,703 --> 00:32:54,005
but they do that for tax reasons.
755
00:32:54,005 --> 00:32:54,739
But at the end of the day,
756
00:32:54,739 --> 00:32:55,373
it doesn't give you
757
00:32:55,373 --> 00:32:57,308
a really accurate account of, of,
758
00:32:57,308 --> 00:32:59,610
what your costs are.
759
00:32:59,610 --> 00:33:00,545
And so we'll get into that
760
00:33:00,545 --> 00:33:01,279
a little bit later on.
761
00:33:01,279 --> 00:33:02,613
But I thought it was very interesting.
762
00:33:02,613 --> 00:33:04,615
Okay.
763
00:33:04,615 --> 00:33:07,618
So you with me so far.
764
00:33:07,785 --> 00:33:09,253
Okay.
765
00:33:09,253 --> 00:33:11,689
Okay. So
766
00:33:11,689 --> 00:33:12,991
and I think you have to let this
767
00:33:12,991 --> 00:33:14,192
go through this whole thing
768
00:33:14,192 --> 00:33:16,094
and it all kind of comes together.
769
00:33:16,094 --> 00:33:17,695
Okay.
770
00:33:17,695 --> 00:33:17,962
All right.
771
00:33:17,962 --> 00:33:19,664
So net profit is the money that okay.
772
00:33:19,664 --> 00:33:20,531
So I talked about this.
773
00:33:20,531 --> 00:33:21,833
So then for main areas
774
00:33:21,833 --> 00:33:23,501
that give us information to determine
775
00:33:23,501 --> 00:33:25,636
how the business performs
776
00:33:25,636 --> 00:33:26,971
are also known as a profit
777
00:33:26,971 --> 00:33:28,639
and loss statement okay.
778
00:33:28,639 --> 00:33:29,774
Number one it's income
779
00:33:29,774 --> 00:33:31,609
which is the total revenue.
780
00:33:31,609 --> 00:33:32,810
Two is the cost of goods.
781
00:33:32,810 --> 00:33:33,578
We talked about that
782
00:33:33,578 --> 00:33:35,146
being a laborer material, equipment,
783
00:33:35,146 --> 00:33:38,683
subcontractors, whatever three expenses,
784
00:33:38,983 --> 00:33:40,485
general expenses, office equipment,
785
00:33:40,485 --> 00:33:42,720
cell phone, shop expenses
786
00:33:42,720 --> 00:33:43,855
for your net profit.
787
00:33:44,822 --> 00:33:46,290
As income minus cost
788
00:33:46,290 --> 00:33:47,492
of goods, business expenses.
789
00:33:47,492 --> 00:33:49,394
Okay,
790
00:33:49,394 --> 00:33:50,895
so if you think about it, every proposal
791
00:33:50,895 --> 00:33:53,064
that you present in the form of a bid to,
792
00:33:53,064 --> 00:33:55,033
to one of your clients
793
00:33:55,033 --> 00:33:57,168
is a mini profit and loss statement
794
00:33:57,168 --> 00:33:58,102
for that project.
795
00:33:58,102 --> 00:34:00,271
In order to prepare a proposal,
796
00:34:00,271 --> 00:34:01,072
you estimated
797
00:34:01,072 --> 00:34:03,174
your cost of goods on the job.
798
00:34:03,174 --> 00:34:04,742
You play a markup factor
799
00:34:04,742 --> 00:34:06,210
to those cost of goods that pay
800
00:34:06,210 --> 00:34:07,412
for the portion of expenses
801
00:34:07,412 --> 00:34:08,679
that your project incurs
802
00:34:08,679 --> 00:34:11,215
and leaves you with a net profit.
803
00:34:11,215 --> 00:34:13,051
Okay, the only difference is hopefully
804
00:34:13,051 --> 00:34:14,385
you're not showing the customer
805
00:34:14,385 --> 00:34:16,154
your cost of goods.
806
00:34:16,154 --> 00:34:17,355
So,
807
00:34:17,355 --> 00:34:21,125
construction is a cost based business.
808
00:34:21,492 --> 00:34:22,560
In order to make a profit,
809
00:34:22,560 --> 00:34:23,327
you is calculate
810
00:34:23,327 --> 00:34:24,362
your cost of goods
811
00:34:24,362 --> 00:34:26,864
and apply the appropriate markup factor
812
00:34:26,864 --> 00:34:28,533
so you can pay for your expenses
813
00:34:28,533 --> 00:34:30,768
and have a net profit left over.
814
00:34:32,003 --> 00:34:33,237
I think
815
00:34:33,237 --> 00:34:34,672
one of the biggest mistakes,
816
00:34:34,672 --> 00:34:37,375
and I knew very early on
817
00:34:37,375 --> 00:34:40,378
that I, I estimated my costs
818
00:34:40,711 --> 00:34:42,613
rather than I really dialed down.
819
00:34:42,613 --> 00:34:45,583
And we had Chris is on the show one time
820
00:34:45,583 --> 00:34:46,784
and this is where he did.
821
00:34:46,784 --> 00:34:49,454
He did that exercise
822
00:34:49,454 --> 00:34:51,022
where he puts everything in a bag
823
00:34:51,022 --> 00:34:52,490
on a job. Well, he had your dish.
824
00:34:52,490 --> 00:34:53,091
You delivered.
825
00:34:53,091 --> 00:34:54,959
If you change a scraper blade out,
826
00:34:54,959 --> 00:34:55,893
throw that in the bag.
827
00:34:55,893 --> 00:34:58,262
If you use a file,
828
00:34:58,262 --> 00:35:00,631
everything, everything goes in the bag.
829
00:35:00,631 --> 00:35:03,501
Because I think we all.
830
00:35:03,501 --> 00:35:05,470
We want to
831
00:35:05,470 --> 00:35:06,370
we want to think that
832
00:35:06,370 --> 00:35:07,972
we made a lot of money on the job.
833
00:35:07,972 --> 00:35:09,974
So, you know, maybe
834
00:35:09,974 --> 00:35:11,909
don't put some of the stuff in there.
835
00:35:11,909 --> 00:35:13,411
You know, maybe,
836
00:35:13,411 --> 00:35:15,113
maybe you didn't put this,
837
00:35:15,113 --> 00:35:15,580
you know,
838
00:35:15,580 --> 00:35:16,380
that bundle of wood
839
00:35:16,380 --> 00:35:17,181
in there in the storage
840
00:35:17,181 --> 00:35:17,748
because it was left
841
00:35:17,748 --> 00:35:19,383
over on another job or whatever,
842
00:35:19,383 --> 00:35:20,485
you know what I mean?
843
00:35:20,485 --> 00:35:21,819
And I think I though
844
00:35:21,819 --> 00:35:23,154
I was probably guilty of that.
845
00:35:23,154 --> 00:35:25,256
I know I was guilty of that. If not.
846
00:35:30,161 --> 00:35:30,528
Yeah.
847
00:35:30,528 --> 00:35:33,531
No.
848
00:35:33,698 --> 00:35:36,434
Yeah.
849
00:35:36,434 --> 00:35:38,503
Yeah,
850
00:35:38,503 --> 00:35:39,003
yeah.
851
00:35:39,003 --> 00:35:40,004
And sometimes your employees
852
00:35:40,004 --> 00:35:41,639
think you made 12 grand, but,
853
00:35:41,639 --> 00:35:43,307
the fact that off that often would,
854
00:35:43,307 --> 00:35:44,041
let's say your employee
855
00:35:44,041 --> 00:35:45,776
picks up a check for me, you go, wow,
856
00:35:45,776 --> 00:35:46,844
we worked on this job,
857
00:35:46,844 --> 00:35:48,179
and, And Bob gets.
858
00:35:48,179 --> 00:35:49,881
It's $8,000.
859
00:35:49,881 --> 00:35:51,449
Well, and it's
860
00:35:51,449 --> 00:35:52,383
usually, like you
861
00:35:52,383 --> 00:35:54,252
said, it's a would was $5 is usually.
862
00:35:54,252 --> 00:35:55,987
That's not what gets you, though.
863
00:35:55,987 --> 00:35:57,989
It's all the small things.
864
00:35:57,989 --> 00:35:58,890
It's the gas bag.
865
00:35:58,890 --> 00:36:02,093
And for it to the jobs, it's all the,
866
00:36:02,093 --> 00:36:04,529
the smaller things that add up over time
867
00:36:04,529 --> 00:36:06,130
and all the trips to Home Depot
868
00:36:06,130 --> 00:36:07,365
that kill you.
869
00:36:07,365 --> 00:36:10,368
And actually, by doing this,
870
00:36:10,535 --> 00:36:11,536
it really tells you
871
00:36:11,536 --> 00:36:12,770
where you have to streamline,
872
00:36:12,770 --> 00:36:15,206
because when I told you,
873
00:36:15,206 --> 00:36:16,774
he, he tells you to open up
874
00:36:16,774 --> 00:36:18,643
five checking accounts.
875
00:36:18,643 --> 00:36:19,977
And when you get paid,
876
00:36:19,977 --> 00:36:22,480
you pay them sequentially.
877
00:36:22,480 --> 00:36:22,813
All right?
878
00:36:22,813 --> 00:36:24,148
The the money goes in the
879
00:36:24,148 --> 00:36:26,017
to you first it goes into the profit
880
00:36:26,017 --> 00:36:27,351
and it goes into the whatever.
881
00:36:27,351 --> 00:36:30,354
And at the very last thing is expenses.
882
00:36:30,755 --> 00:36:33,124
And when you find out you can't
883
00:36:34,625 --> 00:36:35,927
pay the expenses,
884
00:36:35,927 --> 00:36:37,094
you're not supposed to profit
885
00:36:37,094 --> 00:36:37,895
from the other things.
886
00:36:37,895 --> 00:36:39,130
It tells you that,
887
00:36:39,130 --> 00:36:40,097
okay, you need to
888
00:36:40,097 --> 00:36:41,432
you need to raise your prices
889
00:36:41,432 --> 00:36:44,368
or you need to cut cost of goods. Okay.
890
00:36:44,368 --> 00:36:45,469
So we'll get into that
891
00:36:45,469 --> 00:36:48,472
a little bit later.
892
00:36:51,375 --> 00:36:54,345
Confuse your forgot.
893
00:37:21,272 --> 00:37:24,275
That's I mean.
894
00:37:45,496 --> 00:37:45,930
Yeah.
895
00:37:45,930 --> 00:37:48,933
Nope.
896
00:37:50,935 --> 00:37:53,938
Yeah.
897
00:38:01,112 --> 00:38:02,880
Well,
898
00:38:02,880 --> 00:38:05,883
so.
899
00:38:19,230 --> 00:38:19,664
All right.
900
00:38:19,664 --> 00:38:21,198
Now I'm going to stop here
901
00:38:21,198 --> 00:38:22,933
for freaking commercial,
902
00:38:22,933 --> 00:38:25,836
because this is where,
903
00:38:25,836 --> 00:38:28,706
I swear to God, when I got me off oil
904
00:38:28,706 --> 00:38:30,441
based finish,
905
00:38:30,441 --> 00:38:32,443
they got me off oil based finish
906
00:38:32,443 --> 00:38:33,411
because I.
907
00:38:33,411 --> 00:38:34,812
You start looking at the amount of trips
908
00:38:34,812 --> 00:38:36,414
to a job
909
00:38:36,414 --> 00:38:37,415
and and you.
910
00:38:37,415 --> 00:38:38,716
Now you look at chroma stain.
911
00:38:38,716 --> 00:38:39,650
I don't care
912
00:38:39,650 --> 00:38:41,886
if anybody has any doubts or concerns.
913
00:38:41,886 --> 00:38:43,587
Talk to Jeremiah Strong and Boehner,
914
00:38:44,588 --> 00:38:46,957
about the experiences he's had on jobs.
915
00:38:46,957 --> 00:38:49,460
Words saved the guy's a ton of time.
916
00:38:49,460 --> 00:38:49,860
Yeah,
917
00:38:49,860 --> 00:38:51,062
they're a little bit of a learning curve.
918
00:38:51,062 --> 00:38:51,929
But,
919
00:38:51,929 --> 00:38:53,164
I mean, you know,
920
00:38:53,164 --> 00:38:55,333
if you can cut these expenses
921
00:38:55,333 --> 00:38:57,134
and, you know, one thing, Rob
922
00:38:57,134 --> 00:38:57,601
and I always
923
00:38:57,601 --> 00:38:59,203
we're not the smartest guys on the block,
924
00:38:59,203 --> 00:39:03,140
but if we can get you to that zone
925
00:39:03,140 --> 00:39:04,975
where you're making the most money,
926
00:39:04,975 --> 00:39:06,377
and and you're,
927
00:39:06,377 --> 00:39:07,378
you're as productive
928
00:39:07,378 --> 00:39:08,946
as you can possibly be,
929
00:39:08,946 --> 00:39:10,214
they use the marketing stuff
930
00:39:10,214 --> 00:39:11,615
and everything, man,
931
00:39:11,615 --> 00:39:14,618
and just streamline your business.
932
00:39:16,020 --> 00:39:18,022
Hopefully it helps somebody,
933
00:39:18,022 --> 00:39:20,591
not go through some of the hardships
934
00:39:20,591 --> 00:39:22,793
as we've all gone through. So. Okay.