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Default Deck Building Business - What should I expect?

I suspect this topic has been covered in the newsgrup before. I did a
quick seach but didn't find exactly what I was after, hence this
post.....

I'm thinking of starting a deck building business in Boulder County,
Colorado. it seems I'd have to buidl a lot of decks to make money!

How much can one make from a single deck? I know size and complexity
matters so just a ball park number or some examples would be good.

Would it be wiser to buy an existing deck building company or start
from scratch?

I'm too old to do a lot of heavy lifting so I will hire some help.
However, I will not hire illegals so will that make me uncompetitive?

Any other words of wisdom?

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wmrah
 
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wrote in message
oups.com...
I suspect this topic has been covered in the newsgrup before. I did a
quick seach but didn't find exactly what I was after, hence this
post.....

[snip]

Any other words of wisdom?


Yes, deliver more value to your customer than you promise.


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Pop
 
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"wmrah" wrote in message
...
wrote in message
oups.com...
I suspect this topic has been covered in the
newsgrup before. I did a
quick seach but didn't find exactly what I was
after, hence this
post.....

[snip]

Any other words of wisdom?


Yes, deliver more value to your customer than you
promise.


That's sage advice, and good. Always try to exceed
your goals and consider only meeting them as almost a
failure. It works and it works VERY well!

Actually rather than comparing dollars to dollars for a
business, you'd be better off comparing manhours and
expertise requirements per project so you can compare
apples and apples. Anything I'd say for instance would
have no bearing on your situation, even if I were in
your business, which I'm not.

Food for thought:
Don't forget the cost and cons of union labor.
Have you contacted the SBA? Lots of info there. They
gave me a GREAT start!
Is this your first time with self employment? IF so,
you might have a lot of surprises in store; do your
homework.

Then you'll know what questions to ask and how to ask
them.



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Sacramento Dave
 
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wrote in message
oups.com...
I suspect this topic has been covered in the newsgrup before. I did a
quick seach but didn't find exactly what I was after, hence this
post.....

I'm thinking of starting a deck building business in Boulder County,
Colorado. it seems I'd have to buidl a lot of decks to make money!

How much can one make from a single deck? I know size and complexity
matters so just a ball park number or some examples would be good.

Would it be wiser to buy an existing deck building company or start
from scratch?

I'm too old to do a lot of heavy lifting so I will hire some help.
However, I will not hire illegals so will that make me uncompetitive?

Any other words of wisdom?


Other considerations . Contractors License, Liability insurance, Workman's
Comp.and there is allot of misalanious overhead not related to every job.
You need to really sit down and think of all the real cost and hidden cost.
You will probably have to charge allot more than you imagine. You will also
have to learn how to sell yourself. In my short try at Contracting I can't
tell how times I was told " oh you showed up" and that was to look at a job,
so there is allot of flakes out there, Are you going to be one? When I got
a job my theory was to get in there get it done as fast as I could less time
for customer to get picking or annoyed. But you should give it a try you
will never know unless you do. I am not familure with CO. contracting laws
but in CA. any job over $500 requires a contractors License ( some people
believe charging by the hour gets around that, that's just not true) There
are people that will have you do a job then ask for your license and you
don't have a leg to stand on in court. If you do it you should do it right.
Like with anything there's a learning curve. The only other thing's I can
think of is you should try not to limit yourself to just to decks and if a
customers says he has nothing but problems with contractors triple your bid.


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Sounds like good advice. I do plan to get a contractor's license and
become bonded. Figuring out how much to charge is a science fair
project in itself.....

Thanks!



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siralfred
 
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As a home improvement contractor who started from scratch just a few
years ago, I'll agree that you need to do your homework. Since you're
narrowing your service down to decks/carpentry it shouldn't be too hard
to find out about supply costs and labor/man hours required for
different jobs. Home Depot sells a contactor's guide to construction.
It has tables for all kinds of work and adjustments for locality.
Whatever you charge, you won't get everything you bid on and some
people will always think you're overpriced, while others find you to be
a bargain Just as there are bad contractors, there are bad clients too
- don't expect to be able to please everyone. "Selling yourself" IS
more important than pricing. I've won jobs where I had the highest bid
(by as much as 25%) simply because I also won the clients trust and
respect. Be honest, know what you're talking about and don't make any
outlandish promises.

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JRanieri
 
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wrote in message
oups.com...
I suspect this topic has been covered in the newsgrup before. I did a
quick seach but didn't find exactly what I was after, hence this
post.....

I'm thinking of starting a deck building business in Boulder County,
Colorado. it seems I'd have to buidl a lot of decks to make money!

How much can one make from a single deck? I know size and complexity
matters so just a ball park number or some examples would be good.

Would it be wiser to buy an existing deck building company or start
from scratch?

I'm too old to do a lot of heavy lifting so I will hire some help.
However, I will not hire illegals so will that make me uncompetitive?

Any other words of wisdom?


Ah, Boulder, CO - my old school. Beautiful area, with a lot of rich
*******s. I'm not a deck builder, but I started getting a magazine recently
called "Professional Deck Builder" They apparently have expos, seminars,
etc. I'm not shilling for them, but I would really recommend becoming
affiliated with a professional organization. Besides the credibility it
gives your business - it's nice to learn from others in the trade instead of
learning every lesson the hard way, alone in the wilderness.

Good luck.


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Edwin Pawlowski
 
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wrote in message
I'm thinking of starting a deck building business in Boulder County,
Colorado. it seems I'd have to buidl a lot of decks to make money!

How much can one make from a single deck? I know size and complexity
matters so just a ball park number or some examples would be good.

Would it be wiser to buy an existing deck building company or start
from scratch?

I'm too old to do a lot of heavy lifting so I will hire some help.
However, I will not hire illegals so will that make me uncompetitive?

Any other words of wisdom?


Let's start out with a few questions. Do you know how to build decks? Have
you built decks? Are you familiar with the building codes for railings,
stairs, footings? Do you know the differences and pros and cons of using
pressure treated, ipe, cypress, Trex or redwood?

How do you want to position yourself in business? You can be the guy that
does the down and dirty deck on 50 or 100 tract houses going up, or you can
be the deck specialist doing custom work on the homes of millionaires.
Either way, you need a reputation with the clientele you want to serve.

OK, now a few answers. How much can you earn? Plenty if you have the
market, the reputation, the skills not just to build a deck but to sell them
and have the confidence of the buyer. You also have to know how to estimate
labor, figure a bill of material, manage the workforce, control overhead.

Are there any deck companies for sale? Can be smarter to buy a good
reputation. I have no idea of your business abilities to say what is best
for you.

If you are worried about not hiring illegals and not being competitive, you
are probably not qualified to run a business. If price is going to be your
only selling point, there will always be a whore to underbid you so don't
start and lose your investment.
--
Ed
http://pages.cthome.net/edhome/


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Edwin asked: "Let's start out with a few questions. Do you know how to
build decks? Have you built decks? Are you familiar with the building
codes for railings, stairs, footings? Do you know the differences and
pros and cons of using pressure treated, ipe, cypress, Trex or
redwood?"

I say: Yes, Yes, yes.

Edwin: "How do you want to position yourself in business? You can be
the guy that
does the down and dirty deck on 50 or 100 tract houses going up, or you
can
be the deck specialist doing custom work on the homes of millionaires.
Either way, you need a reputation with the clientele you want to
serve."

I say: I'll do custom decks with unusaul touches like a tree growing
through a hole in it, or hidden stroage underneath. Target customer is
the quarter millionaire.

Edwin says" "OK, now a few answers. How much can you earn? Plenty if
you have the
market, the reputation, the skills not just to build a deck but to sell
them
and have the confidence of the buyer. You also have to know how to
estimate
labor, figure a bill of material, manage the workforce, control
overhead."

I say" How much is plenty. I already make "plenty" at my engineering
job. I'd sacrifice some for the love of buiding decks but I still need
to make my mortgage payment and help 3 kids in college.

[snip]

Edwin said: "If you are worried about not hiring illegals and not being
competitive, you
are probably not qualified to run a business. If price is going to be
your
only selling point, there will always be a whore to underbid you so
don't
start and lose your investment. "

I say: Price s not my only selling point but it is a factor in any and
all sales. My point is that I will not prostitute my principles (e.g.
against hiring illegals) to do this.

Cheers

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Edwin Pawlowski
 
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wrote in message

I say: I'll do custom decks with unusaul touches like a tree growing
through a hole in it, or hidden stroage underneath. Target customer is
the quarter millionaire.


That, IMO, is where the money is.



I say" How much is plenty. I already make "plenty" at my engineering
job. I'd sacrifice some for the love of buiding decks but I still need
to make my mortgage payment and help 3 kids in college.


I don't know lthe market in your area. You can top $75k I'd say, but it can
take a few eyars to get tot hat point. Starting a business can be a long
process, now matter how good you8 are. Plan on not making anything for a
year.


I say: Price s not my only selling point but it is a factor in any and
all sales. My point is that I will not prostitute my principles (e.g.
against hiring illegals) to do this.


Good to stick with your principles. As for selling, if you have the right
market and people with money, they will pay to get just what they want.
Putting 10 x 12 decks on the back of track houses in not going to get you
the big bucks unless you can refine the process with speed, not quality.




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wrote:

Edwin asked: "Let's start out with a few questions. Do you know how to
build decks? Have you built decks? Are you familiar with the building
codes for railings, stairs, footings? Do you know the differences and
pros and cons of using pressure treated, ipe, cypress, Trex or
redwood?"

I say: Yes, Yes, yes.

Edwin: "How do you want to position yourself in business? You can be
the guy that
does the down and dirty deck on 50 or 100 tract houses going up, or you
can
be the deck specialist doing custom work on the homes of millionaires.
Either way, you need a reputation with the clientele you want to
serve."

I say: I'll do custom decks with unusaul touches like a tree growing
through a hole in it, or hidden stroage underneath. Target customer is
the quarter millionaire.

Edwin says" "OK, now a few answers. How much can you earn? Plenty if
you have the
market, the reputation, the skills not just to build a deck but to sell
them
and have the confidence of the buyer. You also have to know how to
estimate
labor, figure a bill of material, manage the workforce, control
overhead."

I say" How much is plenty. I already make "plenty" at my engineering
job. I'd sacrifice some for the love of buiding decks but I still need
to make my mortgage payment and help 3 kids in college.

[snip]

Edwin said: "If you are worried about not hiring illegals and not being
competitive, you
are probably not qualified to run a business. If price is going to be
your
only selling point, there will always be a whore to underbid you so
don't
start and lose your investment. "

I say: Price s not my only selling point but it is a factor in any and
all sales. My point is that I will not prostitute my principles (e.g.
against hiring illegals) to do this.

Cheers


One of the problems you have as a new business is that you have no track
record or reference sites you can show prospects. You may have to build
the first few at break-even or worse. But do NOT sell on price.

Do you have a nice deck on your house to use as show piece?

Do you have any biz experience? Do the checkbook?

LB


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I have two decks and two pergolas I can show.

Biz experience -- not much. Although I manage projects for my company
that are about 20 million per year. But then I have an accountant to
help me....

Checkbook. Yes.

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Hmmm. According to Wbster:

per=B7go=B7la
1 : ARBOR, TRELLIS
2 : a structure usually consisting of parallel colonnades supporting an
open roof of girders and cross rafters

It's an overhead structure that blocks most of the sun. In my case, I
basically buily a deco 10 feet over a deck. You walk on the botton
deck. The upper deck has planking only there are gaps in it to let in
some light. From the deck you walk on, you see the joist of the upper
"deck" -- i.e. the pergola. I paint the pergolas white and they look
very nice.

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Edwin Pawlowski
 
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wrote in message

I have two decks and two pergolas I can show.


That's a start. Get them photographed. Hire a pro if need be as you want
them to be magazine quality. Show some of the fine detail in your
construction and how it will differ from the cheapo guys.

Use the decks as a basis for quoting. You know the materials, now cost them
out in different materials so you have some idea when talking to a potential
client. I'm sure you will be asked for a quote in cedar and then the client
will ask how much more for mahogany. You then take that as a clue that they
have more money to spend and you want to take it. If the material cost
increase is $500, you tell them $1000 or more if you think you can get it.
..


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