Understanding Market Pricing

move on to estimating the value of this object. This is really what you are here for. I'm actually going to walk you through the actual bill that I'll be submitting to this client. And, um, there are a few things I want to point out. The numbers I'm going to give you for estimating a paver patio, uh, how much to charge, are only applicable to Minneapolis, Minnesota. In this part of the country, our prices are so high compared to other parts of the country. I want you to understand where the prices come from and how you can adapt them for your region. Because it all comes down to competitiveness . And a good example is that in these parts there is such a shortage of labor right now that to get at least one decent employee, I have to pay $20 an hour and promise to bake them cookies every day . So, it's probably not the same thing you're facing where you are. Now, regarding the paving stones themselves, I want to break it down in detail. This was a residential area, not a commercial property. The prices I will give you will not work for a commercial property. If you bid the way I'm going to tell you to for a commercial property, you'll probably never get the job. Commercial properties have a very specific way of calculating rates, and I'll talk about that in the next video. But for today—only residential buildings. You've seen this project. It wasn't a very big project. It came out to be about 344.5 square feet or something like that. The first thing I'll tell you: market price is the most important thing. Of course? Remember this. In the Twin Cities metropolis, the average price is between $18 and $23 per square foot. This is the market price. Of course? If you charge less, you are simply giving away your work for free. If you charge more than $23 per foot, you will have fewer orders because your competitors will charge between $ 18 and $23. It is important