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Renovations / Additions vs. Service Work

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  • Renovations / Additions vs. Service Work

    Which pays out better in the long run?

  • #2
    Re: Renovations / Additions vs. Service Work

    Originally posted by NJmusic777 View Post
    Which pays out better in the long run?
    That could be a better question for those in Jersey.

    What are you better at.

    You can do both untill you figure it out.

    I in construction would love to have the Clientel that some of the plumbers here have in service.

    How does NJ building departments work with const. How much blood do they need for you to sustain life

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    • #3
      Re: Renovations / Additions vs. Service Work

      it varries: NJ is over packed with people so service can definetly make more $$. A lot of times with new construction / renovations the inspectors are jerks and money gets hung up time and time again.

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      • #4
        Re: Renovations / Additions vs. Service Work

        Originally posted by NJmusic777 View Post
        Which pays out better in the long run?
        I always felt it was important to do a little of each. My passion was for large (12-bath) remodels and new construction but the service work kept the money coming-in in between phases. Especially as a new business, you will need to do the work which will keep the cash-flow moving.

        Mark
        "Somewhere a Village is Missing Twelve Idiots!" - Casey Anthony

        I never lost a cent on the jobs I didn't get!

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        • #5
          Re: Renovations / Additions vs. Service Work

          I think the more important question is what kind of person are you? Do you like to stay in one location for a couple weeks and only deal with the customer once or twice a day? Or, do you like to constantly move from one job to the other always greeting someone new and there is a "hero" factor involved?

          Imo service/repair work requires more tools and gadgets because you have to be ready for anything within reason. I personally like repair work because it suits my personality(I have a bad case of ADD). I can't answer your question on which pays better because I have very little experience on civilian remodels(I do it all the time for the Navy though).

          I think you know which field you would like to work in but haven't found the right questions to your answer. Find what you enjoy doing in life and you'll never work another day. I think that was Confusis.
          Buy cheap, buy twice.

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          • #6
            Re: Renovations / Additions vs. Service Work

            Two days in a row on a job is enough for me . I only do custom new work . The rest is repair / installation / drains / remodels . Be the '' HERO" and get out . My experience with the Plumbing and Gas business as far as profitablity is ........in order of highest profitability .

            1] high priced bid work [ flat rate ]. I am hourly but will bid .
            2] Repair / service is next . Theoretically , you could have 3 or 4 small calls in the same area . Thus , you may be able to complete 5 jobs in three hours . Saving gas , plus min. hour charge .
            3] Ins. work and commercial is next . Guaranteed to pay usually , and generally thier are no hassles with the customer wanting to short-cut , due to the fact these are usually required to be inspected .
            4] New construction for me is the least profit margain . Trac-house work is boring , redundant , and hard . Custom is good work though . I always grab it for friends or associates .
            Hope this gave you a little more insight.

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            • #7
              Re: Renovations / Additions vs. Service Work

              I do both.
              I prefer remodels, more satisfaction, your in one place all day, but the moneys not so good hour per hour.
              GC's like to scrounge for lowballers, homeowners want high end Grohe at home depot prices.

              Service is more money and more headaches.
              You go in to repair what sounded like a leaky drain over the phone, to discover the homeowner needs a copper repipe, the homeowner often seems to think you're making it up to get more money.

              Trick on either seems to be developing a list of regulars who you have a repore with and understand you're charging a reasonable rate for good work.

              Comment


              • #8
                Re: Renovations / Additions vs. Service Work

                If we never did New Construction back in the day..we would of OWNED our area within a 8 mile radius service wise.

                New Construction, if in the right situation...can make LOADS of money. Back in the 80's and early 90's, our Company was averaging $10-18 K a month at Fergusons, while cranking out 12-17 homes a month. This builder also paid 15 days from an invoice..and life was excellent.

                The sacrifice was..we really didn't have a service presence in our area, cause we just couldn't get to those jobs.

                My father back then was one of the first big named Plumber's..in the area he moved too. So, he had to make a choice between New Construction or Service. When my father first moved to our area..there wasn't many homes in this area..like there is today.

                I know of a few service companies in my area, who are really cranking out the work..and life is good for them. Since we left New Construction in the early 90's we have slowly but surely built our service work back up to where it should be..but definitely room for improvement.

                If I had to choose between new work and service..I would take service work today...hands down!

                Builders are not paying anything..and waiting 90 days on an invoice just doesn't cut it. Plus..I don't like depending on a builder or carpenter to pay me my money..we strictly deal with the customer these days.

                The quality of the craftsmanship today..has drastically gone down in the Plumbing trade in our area. My biggest Pet Peeve today is..the young kids in this trade, that only care about a pay check..and it shows in their work!

                I agree with others though..you will need service work to help offset things for yourself.

                Comment


                • #9
                  Re: Renovations / Additions vs. Service Work

                  Originally posted by Tieger plumbing


                  When I had the larger company OSHS , MSDS and 2 weeks paid vacation they received sicks days ,holiday day pay personal days and took company vans home and used it for personal use.

                  THINK about it 19 people getting two weeks off with pay THATS money out of your pocket 38 WEEKS then holidays and Christmas bonus for showing up and medical @ $1,000 per person plus your normal over head.
                  I'm sorry but I don't see it that way. How can this be coming out of your pockets? Where did you get your money from? Now isn't this where the actual money is leaving the pockets. To have so much money to play with and you get the feeling that it should all be yours and not wanting to share w/the hard workers, thats just plain old "Greedy". Of course those workers deserved the Vacation and sick days and Holiday's, this is why your charging what you are..
                  I've been here for almost a year now, and not once have I seen someone so self centered. I'm sorry for saying this, I have read other posts that you have done and never responded to any. Have you ever reread any of your own writings? I saw what your all about and I new what you we're trying to start. Sorry buddy, but after this post, I don't have one ounce of respect for you. You really ought to try and work on your personality. I really don't get mad at people or cut them down, my god though, your the icing on the cake...
                  Great Link for a Construction Owner/Tradesmen, and just say Garager sent you....

                  http://www.contractorspub.com

                  A good climbing rope will last you 3 to 5 years, a bad climbing rope will last you a life time !!!

                  Comment


                  • #10
                    Re: Renovations / Additions vs. Service Work

                    My buddy Garager has a point , he is a level headed guy . The numbers your dealing with makes me wonder why you even need our little forum .

                    Comment


                    • #11
                      Re: Renovations / Additions vs. Service Work

                      Tieger,

                      Ever think the trouble you have with your employees is that they don't respect you or your company and it is not a universal problem?

                      I know lots of people with employees that have NEVER stolen from them or refuse to work the jobs given to them by their boss.

                      At some point you need to realize that maybe, just maybe, it is not everyone around you with the problem and the real problem is yourself.
                      I love my plumber

                      "My Hero"

                      Welcome, Phoebe Jacqueline!

                      Comment


                      • #12
                        Re: Renovations / Additions vs. Service Work

                        Originally posted by apf View Post
                        My buddy Garager has a point , he is a level headed guy . The numbers your dealing with makes me wonder why you even need our little forum .
                        With you all the way APF

                        Comment


                        • #13
                          Re: Renovations / Additions vs. Service Work

                          Originally posted by Tieger plumbing
                          Tell that to the United Association as in the want ad they said appliciant must pass a drug test.

                          Believe it or not there is a big problem in the industry with drugs in the work force and it not just inner cities.

                          By the way For a Christmas bonus I gave my supt of the shop a New Ford LTD so it has nothing to do with compensation for the skill its the human factor
                          So what.

                          And I have a personal experience to justify my point.Although it may not apply exactly,but I have a feeling it's still inside the Foul lines.

                          There was a person who I allowed myself to work with while I got away from plumbing for a while.Very unscrupulous,His perceptions were dilusional based on his learned beleifs.If someone allows themselves to be taken by being a trusting,kind or unknowing then be the first one to be there as soon as possible to capatilize on this.

                          The money he made off of me was in the 10's of thousands.He abused the trust I had in him on a regular basis.

                          Yeah,one year after I solely assisted him in profitting $200K on one project he gave me a grand that year and that year only.

                          He wore many hats to benefit himself.

                          I did appreciate it at the time,I could not see the fact that I would make that back to him in a matter of weeks and he new it.

                          That one bonus was used as a vehicle to promote himself in many circles way outside of our relationship.Including the circle of impressing women so he could cheat on his wife,She was a good woman who I cared about

                          I don't like to get so personal,but I felt compelled to give a comment.

                          Sorry to get so far off The posters thread inquiry.Like to get back on track if the forum choses.

                          ADAM

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