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Question and Answer About ROI
ROI is not profit, ROI is based on cash to cash cycle and profit dollars
Read my book and buy the templates, They will calculate your numbers
Good luck
Matt Stevens
Sent from my Verizon Wireless BlackBerry
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Date: Wed, 23 Jan 2008 02:06:37
To:mstevens@stevensci.com
Subject: RE: Question
Matt,
Thanks for the reply. So the job with all the subs, permits, etc. looks to be over 12 million dollars. 30% is 3.6 million. Doesn't that seem extremely high?? I would love to do the job and were going up against three other contractors.
Thank you in advance.
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>Date: Wed, 23 Jan 2008 02:02:37
To:mstevens@stevensci.com
Subject: RE: Question
Look at the ROI to set price and profit
Somewhere around 30% ROI is appropriate. It is up to you whether you want to go higher or lower. There is no right or wrong. It is a business decision. My book has the complete calculation.
Best of luck
Matt Stevens
Sent from my Verizon Wireless BlackBerry
____________________________________________________________________________________
Date: Wed, 23 Jan 2008 01:40:53
To :
Subject: Question
Matt
Thanks for taking the time to read this e-mail. I have a quick question for you. My friend (who is a carpenter) and I (an electrical contractor) have started a general contracting business. So far we have done some houses and some smaller commercial buildings. We have recently been offered to submit a bid on a 114 unit town home project that looks to be 12 million plus. Does the standard 10% apply on that scale?? If so it would be over 1.2 million dollars... or does the markup change based upon the price associated with a big job??
Thanks for any info,
Posted by Matt Stevens at February 1, 2008 3:13 AM