10 things successful local contractors do

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1 . Know Regional Job and Permit Growth

Phoenix, Washington DC, Orlando, and Texas saw an increase in jobs, while Chicago and Las Vegas have been shedding jobs. You definitely have to worry less in case you are in “Job Growth Areas” because jobs fuel home improvement spending. Following graph shows the states which are expected to perform well in April. This ratio takes care of employment forecasts, permits, and market size. This data is available at Metropolitan level. Since larger markets generally have more permits, we tried to neutralize that effect by dividing EP ratio by Market Size (S). Higher the ratio, the better the market.
Genie Bazaar EPS Ratio

2. Know Investor Activity in their Market

More than one-third of all sales are happening in the former bubble markets such as Phoenix, Orlando, Las Vegas, and Atlanta. This means that distressed properties are being bought and less debt is being put on these properties. This should reduce supply of existing properties and help prices within these regions.

3. Lag between Job Growth and New Construction Spending

Obviously, homeowners (who foreclosed their houses because of unemployment) will not buy a house as soon as they get a job. They will likely stay in a rental property until they save money for down payment, plus additional emergency savings. Based upon average US salary, this should take about 8 – 13 months depending upon whether spouse is working or not. Contractors should expect growth in their business 13 months after job market improves. Recent figures from census indicate 8.3% Unemployment rate in USA

4. Check Material Inflation

Most of the Wall Street is anticipating raw material inflation. On one hand, it is difficult to get any money out of homeowners’ pockets, and on the other hand, inflation has kept its wide mouth open. Higher cost of roofing material or paint material will definitely not let demand reach its potential. A local contractor must know what inflation risk his/her business is facing or he/she should work to find this out, as it could impact bottom line.

5. Check Tool Inflation

Material Inflation will have direct impact on the cost of tools, too. Specifically, according to estimates, power tools will see a price increase in near future. More the number of power tools you use, the more tool inflation risk you face. You will probably notice it at major stores selling tools over next one year.

6. Meet Deadlines

When there is huge supply and everyone has similar skills, the only way you can differentiate yourself is by providing high quality services. Not only this keeps the homeowner you have served loyal to you, but it also increases the chance of being referred to someone else. In addition, a small gift after you finish the job goes a long way in keeping your customers with you. In summary, finish on time, deliver quality, and give a small gift.

7. Provide Free Estimates

Well, let’s face it! Majority of the income is earned by doing actual job and not by providing estimates. Many local contractors reduce their chance of being hired by charging customers for estimates. It is a tricky area because you have to provide something for free and you have to be close to perfect.

8. Network with contractors in other trades

This can go a long way. A survey suggested that contractors got 20-25% of their jobs by networking with other contractors. You can imagine how this works. A plumbing contractor fixes a leaking tap and the homeowner asks for a reference from him for a roofer who can fix leaking roof. This happens all the time in the industry. One must expand his/her network and network with contractors from other trades as well.

9. Advertising

A recent survey showed that a lot more customers are looking for discounts before purchasing anything. Even if you are able to provide a small service discount, it may be a good idea to use mail advertising and put your offer in front of your potential customers. Many homeowners are not throwing those in garbage anymore. You can also add offers on your profile on Genie Bazaar.

10. Payment and Legal Terms

Especially for expensive jobs such as replacing roof of the entire house, it is possible to get delayed payment from the customer. Many contractors are using escrow services and partial advance payment for avoiding this delay. It may not be a bad idea to use escrow services for lengthy projects and get piece of mind and improved cash flow. Each day’s delay reduces cash flow for other functions of the business. E.g. One day’s delay in marketing dollars can cost you customers!

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Genie Bazaar Team
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How to estimate project cost?

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Isn’t that a million dollar question? Many employers on geniebazaar.com ask me how much they should pay for a project or how much would it cost them to get the project done? Let’s try to answer that, today.

Just like there are many methods for estimating stock prices, there are many methods for pricing a project. Let’s have a look at them one by one.

1 – Find the cost of comparable project (Similar to P/E multiples for stocks):

Many projects have been posted and completed on geniebazaar.com. You can browse through project descriptions of these projects and compare the price that was paid for those projects with the price you are planning on paying. This may give you approximate results, however, you will still notice a huge disconnect between prices paid for similar projects. Ironically, the reason behind this disparity is purchasing power parity (also known as PPP). Project completed in India will probably cost less than the project executed in USA because of the difference in hourly wages. Prices can also differ due to contractor’s experience, customer service, community reputation, backlog of projects, and knowledge. In summary, your project should cost as much as another similar project, if it will be executed within the same country and by similar contractors.

2. Estimate the effort (Much like Discounted Cash Flow Analysis for Stocks):

Find out what is the typical hourly salary in a country by visiting various profiles on GenieBazar.com. Most of the freelancers and contractors display the hourly rate they are willing to accept. You will notice that average hourly rate can be very different depending upon the country. In Bangladesh, website developers charge an average of $9/hour, while UK web developers charge close to $24/hour. You must then add a discount or premium to this rate to account for contractor’s experience and other unique attributes.

Now, try to estimate the number of hours your contractor will need for developing this project. This can be tricky for people with less or no knowledge about what’s involved in completing the project, however, you can get some ideas from friends or neighbors working in the same field. You can also search on Google or Bing for finding out various steps involved in completing your project. Leverage forums and chat rooms related to your project for getting more ideas on latest technologies and trends.

If you end up estimating the project by yourself, then try to break the project down in modules. Estimating the number of hours required for developing each module will likely bring you closer to required “project-hours” or “people-hours”.

Once you have people hours or project hours, you just need to multiply it with the hourly wages you had calculated.

Happy Freelancing!

Genie Bazaar Team
Talk Freelance, Talk Genie

5 things to look for in a freelancer

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For making sure that your project turns out to be as you envisioned, it is essential to make sure that you are hiring the right freelancer for you. There are five things which you should look for while hiring a freelancer:

1. Work Samples:

Ask your freelance contractor about similar work samples. Precisely, projects developed on similar technology, of similar size, having similar functionality, and/or developed for same industry. This will ensure that the end result of your freelance job is exactly as you expected.

2. Education and Experience:

Ask your freelancer about his freelance experience and education. Freelancers with more experience and higher education are more expensive, however, they can finish your project in the most efficient manner. Make sure that they have relevant experience and education.

3. Time availability for project:

Ask your freelancer about the number of projects they are working on and about their ability to deliver the project on time. This will help you evaluate whether your freelancer is capable of delivering the project on time. Try to break down the project into pieces (or modules) and ask your freelancer how much time they would take to finish each of those pieces or modules.

4. References:

Check for reviews on Genie Bazaar. Also, ask your freelancer whether he can provide you with some references. This is one of the most important steps which allows you to learn more about your independent contractor.

5. Offers:

Check your freelancer’s Genie Bazaar profile. Often, freelancers post offers and discounts on Genie Bazaar which can reduce your overall cost of the project.

In addition, we always try to make sure that our customers have the most positive experience on Genie Bazaar. You can e-mail us at support@geniebazaar.com with any questions/concerns.

Genie Bazaar
Talk Freelance, Talk Genie!

How to hire a Freelancer?

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Often, we hire freelancers for doing some critical and sensitive tasks. Hence, it is essential to be able to trust a freelancer. So, the question boils down to “How do I hire a trustworthy and skilled freelancer?”

1. Posting freelance job or contract job

You can choose from over 120 freelance job categories in the above section. SEO, Web Development, Article Writing, Graphic Designing, Lead Generation, New Business Incorporation Lawyer, to name a few

Make sure that you describe the project, which you are planning on outsourcing, in as much detail as possible. Try our SECS approach. Simple, Elaborate, Complete, Sizable. This should help freelance contractors in giving you an accurate quote.

2. Comparing Quotes and Awarding Project

It is important to check whether a freelancer is up to the task. Check their profile, work samples, and offers on Genie Bazaar. Schedule an interview with freelancer using Skype, Yahoo, Gtalk, etc. and learn more about their experiences, background, and ask for similar work samples.

3. Making Payments to Freelancers

There are many payment options available on Genie Bazaar. You can choose our VaultPay Escrow Payments or Direct Payment options like Paypal, Credit Cards, Checks, ACH Bank Transfers (within USA), etc. All Escrow Payments come with our 100% satisfaction guarantee.

Since we record all transaction made through our website, you are protected against scams/frauds. By using payment options via Genie Bazaar, you are also eligible for any dispute resolution between freelancer and employer.

4. Help other Employers/Entrepreneurs by giving reviews

After you have paid the freelancer, you will be asked to rate the freelancer and provide comments on his/her expertise and your experience with him/her. This is an essential step for making sure that best freelancers are recognized and employers have instant access to our top freelance experts.

What is Genie Bazaar?

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Genie Bazaar connects entrepreneurs and small business owners with global and local contractors. We understand that a new business owner needs to worry about a variety of things for bringing their idea from conceptualization stage to implementation stage. Few of these things are industry research, business plan development, admin support, sales support, website development, content creation, business model research, accounting for business expenses, filing taxes, raising funds, and at times figuring out the perfect astrological date for starting your business.

To simplify things for you, we have formed a network of freelance contractors who can be hired ONLY when you need them. Many small businesses don’t want to add fixed costs (Full-time employee salaries) to their income statement and are often searching for the most affordable way for getting their work done. Genie Bazaar solves this exact problem. You just need to describe your project and post it on Genie Bazaar. Our trusted and verified freelancers will send quotes on your project and you can review those quotes, compare those quotes, award the project, get your work done, and pay to the freelancer on Genie Bazaar!!! You know what is the best part? You don’t have to pay for these services.

So, what are you waiting for? Post your wish and hire a genie!

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Genie Bazaar
Talk Freelance, Talk Genie!

Spring is here! Do you have anything planned for your house?

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After a long winter, spring is finally here. It is that time of the year when we enjoy the sun and the warm temperatures after several months. Unfortunately, it is also the time of the year when most of the expenses related to our house hit us. E.g. Dirt accumulated on carpets, damage caused to the roof because of heavy snow, landscaping, and other miscellaneous appliance repairs.