Financial Management

Ep.31: How to Successfully Use Cost-Plus Pricing with Josh Baker

August 29, 2018 Business Management, Financial Management, Sales 00:24:45

The Cost-Plus Pricing model seems to go completely against common sense, but it’s a concept that we’re getting more questions about from our membership. One contributing factor is that consumers increasingly demand transparency when purchasing products and services — and homeowners are coming to expect it when undertaking a remodeling project. But so many remodelers don’t understand it. Can Cost Plus be your new pricing model?

Josh Baker, co-founder of BOWA Builders, has been using Cost-Plus Pricing for more than 20 years. In this episode, he talks to Victoria and Mark about its pros and cons, and why it’s a cornerstone of his company’s success.

Josh founded BOWA Builders in McLean, VA, with college friend Larry Weinberg in 1988, serving the Washington, DC, metro market. As the leader of BOWA’s sales and marketing team, Josh helped to quickly grow the company’s revenues from $250,000 to nearly $40 million in just 20 years. As chief revenue officer, Josh’s focus is on growth and managing an energetic, productive sales team. Recognized nationally as an expert in the industry, Josh is quoted regularly in publications, including The Washington Post, Better Homes & Gardens, and Remodeling, and is a frequent speaker at local and national industry meetings.

Cost-Plus Pricing can be a differentiator, but it can also frighten some remodeling business owners — as well as some clients. Josh explains how to present the concept to clients, and what it will take to implement it profitably, as well as:

  • What jobs are suited to the Cost-Plus Model
  • Weighing the risks and rewards
  • The necessity of pinpoint accuracy in estimating
  • Why not to apologize for your costs
  • The time it takes to do well
  • Why you need a sophisticated, expert sales staff to make it work
  • And a whole lot more…

Josh stresses that Cost-Plus Pricing isn’t for everyone, or for every job. Listening to this episode may help you decide if it’s the pricing model for you, or for some of your projects. Check out BOWA’s website for more about the company, and if you have questions about Cost-Plus Pricing, send Josh an email at josh@bowa.com.

 

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Ep.30: How to Create a Financial Plan with Sacha Millstone

August 22, 2018 Financial Management 00:30:24

Business plans, marketing plans, any plan serves as a map to a goal. Your financial plan is no different.

You need to set your goal, write it down, and commit to it. Our Roundtables members do this regularly for their businesses. But too many people get anxious when it comes to looking at their personal financial plans, says guest Sacha Millstone, a financial planner and wealth manager.

Sacha discusses how to get past the anxiety about your personal financial planning with Victoria and Mark in this episode.

Sacha started the The Millstone Evans Group in the Washington, DC, area in the late 1990s, and now has a team of 10, with offices in Washington, DC, Denver, CO, and Boulder, CO. She has helped hundreds of clients achieve their financial goals by creating a written plan and helping them put it into place.

When you’re running a small business, you can get so absorbed in your work financials that you avoid looking at your personal situation. But you have to, says Sacha. And while you can do a financial plan to get you to retirement, it’s difficult. There’s so much emotion around money that you may need someone to advise, coach, and hold you responsible.

There’s so much good advice in this episode! You’ll learn:

  • The magic of compound interest
  • Why not to use the word “budget”
  • Where your investments are — and what to add
  • Why insurance — especially for yourself — is so important
  • How to mitigate risk in your investments
  • What the Monte Carlo analysis is
  • And a whole lot more…

You’ll also hear why Victoria’s idea of summer fun for kids includes financial quizzes. This episode breaks down the importance of financial planning for remodeling business owners in ways that will make you think differently about the whole subject. It’s never too late to plan.

For more information about Sacha, her business, and how she can help, go to the Millstone Evans Group’s website. If you have questions, drop her an email at sacha.millstone@raymondjames.com or give her a call at (800) 201-4554.

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MASTER NAVIGATION

This website is part of the Remodelers Advantage Network.

Visit our other properties: