Material Pricing

[Octopus]

Pricing is confusing?
Don't talk squit man!
Pricing is easy and God knows there's enough posts on this forum about it.
What you need to work out is how much it costs you per hour/day/month/year to keep your business running. This will be different for everyone, even for two sparks living in the same town.
What are your overheads?
What do you need to earn to pay your bills?
Add these two figures together.
How many hours will you work per year REALISTICALLY?
Divide one by the other and you have your break even hourly rate. You CANNOT charge less than this or you will become bankrupt, end of story.
Now look at the job you're quoting. How long will it take? 2, 3, 4 days?
How many hours will you work per day? 6,8, more?
Tally up all the materials needed for said job.
Add the two together and add some profit, that's your quote, easy as pie.

When you quote work you are guestimating, you may get it right, you may get it wrong. The trick is to get more right than wrong.

YOU WILL NOT GET THEM ALL RIGHT!

And don't forget to allow for tax and NI too!

 

[Voltimax]

And don't forget to allow for tax and NI too!

I shouldn't have to be pointing those things out

 

[Octopus]

I shouldn't have to be pointing those things out

With some of the numpty posts on here I nothing would surprise me.

I would hazzard a guess, that at least a 3rd of the newly SE guys on here, haven't got a clude what theit overheads are, nor are saving for their tax bills.

 

[Voltimax]

With some of the numpty posts on here I nothing would surprise me.

I would hazzard a guess, that at least a 3rd of the newly SE guys on here, haven't got a clude what theit overheads are, nor are saving for their tax bills.

Well I haven't been here in a long time, but judging by some of the posts I've seen, I think I'd have to agree with you, lol

 

[mamba]

Pricing is confusing?
Don't talk squit man!
Pricing is easy and God knows there's enough posts on this forum about it.
What you need to work out is how much it costs you per hour/day/month/year to keep your business running. This will be different for everyone, even for two sparks living in the same town.
What are your overheads?
What do you need to earn to pay your bills?
Add these two figures together.
How many hours will you work per year REALISTICALLY?
Divide one by the other and you have your break even hourly rate. You CANNOT charge less than this or you will become bankrupt, end of story.
Now look at the job you're quoting. How long will it take? 2, 3, 4 days?
How many hours will you work per day? 6,8, more?
Tally up all the materials needed for said job.
Add the two together and add some profit, that's your quote, easy as pie.

When you quote work you are guestimating, you may get it right, you may get it wrong. The trick is to get more right than wrong.

YOU WILL NOT GET THEM ALL RIGHT!

How backward of me it is so simple and easy and been in front of us all the time. going forward will apply this model to all my quotes and prices. Thanks much appreciated

 

[mamba]

I shouldn't have to be pointing those things out

Income Tax is the is the PRICE we pay for the privilege of making money

 

[mamba]

Well I haven't been here in a long time, but judging by some of the posts I've seen, I think I'd have to agree with you, lol

You Talking fixed or variable overheads/costs ????? Also curious as how one goes about setting pricing stratagies and policies based on demand and competitive behaviour and criteria. Please let me know as a new SE oviously clueless and a numpty have so much to learn and I really do want to learn so all advise very welcome.

 

[pmf]

I usually work on SOR (schedule of rates) sometimes they can be tight but most of the time it works out just fine.