[smittybros]

Do any of u guys have set polices on working for people you know. right now we don't but I'm thinking of implementing one and when working for friends or family making them aware of the policies. why is it people cant believe someone else is still cheaper than you, "when your there friend"? this eats me up.

what do u guys do?

[Matt Kulp]

Dan,
I have went through this more times then I would like to admit. I have had some good relationships strained over projects that we have done for friends. It does seem that your friends have a hard time understanding that you need a certain margin to stay in business. What I have began to do is sit down with your friend or family member and let them know before you start what you can and can't do. For our company we have a rate per hour that we have to get in order to cover our overhead and operating expenses, along with a minimum net that we must get. I try and explain that if they want it done during the work week and by my employees that this is what I have to get. If they want me and a couple of buddies or family members to come over on a couple of Saturdays and do a project that is a different story. Anything that you are paying employees and operating cost on, you can't make exceptions on the cost. If you do it once, they will ask you again and again and again. Or worse, tell there friends what kind of deal they got and then you have to explain to all of those people when they call and expect the same deal.
Another way you could cut some cost could be to give materials at cost, or move in equipment on your own time, do some design on your own time, or pick up the materials and deliver them on your own time. I would not do any of it while you are on your clock, because then you would have to bill for your time.

I just did a job for a good friend last week. I gave him all of the materials at my cost and just charged him a bare min. hourly rate for our services. I did not cut my neck with the rate though. He of course thought the hourly rate was too high, but he accepted the terms before we did the work. Last, you could always barter for services if your acquaintance has a service or product that you would see as value. Just my $.02

[Dale Wiley]

There are different levels of friendships.

There ae some of my friends I would never do work for, they are friends , butwould be lousy customers. There are friends who we work for who are also business people that understand business, and we refer business to them as well. We have been friends for 40 years and it has alwasy worked out great.

I don't do much for family. My brother in law buys houses, fixes and flips them. We do the landscape, site work excavations etc, at our NORMAL hourly rate, plus 3% of the net profit, all payable at sale. Time on market is about 33 days right now.