Pricing

[menace 1984]

Hi All

I'm in the beginning of trying to build a business for myself after 14 years in the trade. I'm struggling a little bit on trying to formally a pricing structure. I want to be competitively priced while making a good profit. Any tips on how to go about this.
I'm currently going in at £200 a day plus materials with 10% or £20 an hour on smaller jobs

Thanks all

 

[Darkwood]

Please be careful when talking about pricing on an open forum for all to see.

 

[Octopus]

Hum... £20 for small jobs? How many of these do you think you can do properly in 1 day, including travelling etc - it won't be 10 and thats for sure.

How do you come to £20 per hour if your day rate is £200? Do you work 10 hours every day?

You should have an higher first hour rate IMHO and a higher "subsequent" hourly rate

 

[Englishman]

£20 an hour is a recipe for bankruptcy.

 

[menace 1984]

I do charge double that for the first hour to cover travel. Wanted to know if fixed pricing on certain items works for anybody rather than a time structure. Just look for a bit of a bench mark. I use certain Web site to bring in work and I seem to be more expensive a lot of the time and I don't seem to be making much profit to reinvest in myself

 

[Andy78]

As above, my hourly rate is more than my day rate divided by hours in a day.
This is to reflect the extra time involved with paperwork, travel, material sourcing etc associated with smaller jobs.
I also have a "first hour" rate to cover the callouts/really small jobs

 

[uksparks]

I'm at £200 per day or £30 per hour, if day take 5 or more hours, it's £200

 

[menace 1984]

Obviously people want to get the price down. Ito nice to know your pricing is right would hate anyone to think I'm trying to rip them off. Although pricing is individual to the company

 

[menace 1984]

If it's a good days work would you allow another half day or keep it at a day to keep the price down

 

[Flanders]

You need to charge more for you first hour to cover getting to the job paper work etc , when working out your day rate you need to account for your holidays that you want get paid for

 

[Hellmooth]

£50 call out/first hour then £30 thereafter, £240 a day average but can be anywhere from £200-£300 depending on circumstance. I used to be to soft and would say 'just call it........xyz'. But now I've got a more structured pricing list and I'm finally starting to see some profit, customers are happy haven't ever had one complain about price.

 

[hightower]

I'm at £200 per day or £30 per hour, if day take 5 or more hours, it's £200

5 hours is 150 quid by your hourly rate. So if you're on site for 5 hours you automatically give yourself a 50 quid bonus?

 

[stevethesparks]

Shouldn't this be in the "Arms" section?

 

[Englishman]

Yes it should

 

[Marvo]

The OP isn't an Arms member and unfortunately requires 100 posts to qualify for access. Pricing structures aren't exactly trade secrets so you're welcome to discuss this in the public facing forums but please be aware what you post here is publicly viewable.

 

[Hellmooth]

Exactly, if a customer asks then they get told the same.

 

[Octopus]

The OP isn't an Arms member and unfortunately requires 100 posts to qualify for access. Pricing structures aren't exactly trade secrets so you're welcome to discuss this in the public facing forums but please be aware what you post here is publicly viewable.

So a keen DIYer with 100 posts can be in the arms?

 

[OldeSparky]

wow i wish i worked where you guys do..

 

[Octopus]

wow i wish i worked where you guys do..

An unhelpful comment....... where do you work?

 

[Welchyboy1]

most plasterers and painters charge £20 per hour

try a week of charging £35 per hour and see how it goes, dont budge, be strong, if your worth it, decent customers wont bat an eyelid

the sparks who have got the balls to charge proper money are the ones who do well(as long as they are worth it)

so many trades undercharge and always complain theres no money in it!!

Heres the five secrets to earning decent money as a tradesmen


1. Build the confidence to charge what your worth

2. Dont ever work on a day rate, always work on a fixed price

3. learn to be fast, efficient and highly organised

4. constantly be pruning your customer base of bad customers, so you have time and room for new good quality customers

5. Rinse and repeat


£££££££££££

 

[Marvo]

So a keen DIYer with 100 posts can be in the arms?

Nope, the Arms entry requirements are, broadly speaking, a 'professional electrician' with over 100 posts. We have made exceptions on particular occasions for some people in the past with less than 100 posts and the definition of 'professional electrician' is open to staff discussion in some cases, there are members who are electrical engineers, lighting designers, course tutors, electrical museum owners, meter installers and panel builders to name a few that have qualified for access in the past.

 

[gnselectricals]

most plasterers and painters charge £20 per hour

try a week of charging £35 per hour and see how it goes, dont budge, be strong, if your worth it, decent customers wont bat an eyelid

the sparks who have got the balls to charge proper money are the ones who do well(as long as they are worth it)

so many trades undercharge and always complain theres no money in it!!

Heres the five secrets to earning decent money as a tradesmen


1. Build the confidence to charge what your worth

2. Dont ever work on a day rate, always work on a fixed price

3. learn to be fast, efficient and highly organised

4. constantly be pruning your customer base of bad customers, so you have time and room for new good quality customers

5. Rinse and repeat


£££££££££££

Like no.4 just really got in a position where I can say no chance to a few people who I would have done work to in the past and feel quite good about it

 

[Welchyboy1]

Like no.4 just really got in a position where I can say no chance to a few people who I would have done work to in the past and feel quite good about it

Well keep your self ticking over, obviously, but as soon as your starting to get too busy, start SERIOUSLY looking at your customers

you need too get rid of bad payers first and foremost, even if its that than actually having any work, their not worth it

then it works on a sliding scale from there, builders being next, i actually mentally rate them in stars

what youll end up with in years to come is a solid gold star client base, who pay you well, in time, dont argue with prices, dont want to give you a hand, dont want to supply the materials, dont keep changing their mind halfway through a job, make plenty of tea lol. You get the idea!

once your at this stage you will only be taking on gold star customers to replace the gold star customers that live further away etc

 

[uksparks]

5 hours is 150 quid by your hourly rate. So if you're on site for 5 hours you automatically give yourself a 50 quid bonus?

Yes because any job that takes 5 hours will knacker the day so I charge a day as it leaves a useless length of time.

 

[OldeSparky]

An unhelpful comment....... where do you work?

meaning the rates are higher than where i live and work.. why be so rude?

 

[Octopus]

meaning the rates are higher than where i live and work.. why be so rude?

er no. I have no idea where you work so how could you possibly come to that conclusion?

unless you state where you live this is completely meaningless.

 

[hightower]

Yes because any job that takes 5 hours will knacker the day so I charge a day as it leaves a useless length of time.

Didn't think like that. Very valid point, thanks for clarifying

 

[DuaneMHunt1976]

London and i guess Essex and around London area will be high.
Im from the outskirts of Nottinghamshire/Lincolnshire

TALK
That a guy from S****horpe worked in London for 700% what he could get in S****horpe.
Cost of living down south is so much higher.
Why personally i would LOVE to be able to NIP IN AND NIP OUT Jobs in the London Area, id sleep in a car for that much so im there for them.

 

[Piratepete]

Hi
1. I'm up front with my rates which are £100 per half day and £30/hour otherwise. For small jobs, the first hour or part is always £30. I might pro rata subsequent hours. Depends on job. You need a higher hourly rate for reasons others have stated. Materials markup is 10%.

2. For small jobs, up to a day, or complicated jobs I never give a fixed quote, always an estimate. There are too many hidden pitfalls which will extend the job and turn a profit into a loss. The only jobs I give fixed prices for are rewires and kitchens. My customers have always accepted that it takes what it takes provided that I can demonstrate that problems couldn't have been foreseen. Travelling time is not chargeable unless it's more than half an hour.

3. I only do private work - no subcontracting.

All the best!

Pete

 

[davesparks]

It depends on the type of work really, I charge less on domestic than I do for commercial, less for commercial than I do for theatres. And then for the west end theatres my day rate approaches the four figure mark

 

[TJ Anderson]

Yes because any job that takes 5 hours will knacker the day so I charge a day as it leaves a useless length of time.

I don't like that really. That will bite you one day as a customer will see they are being charged for you not filling your day. They would save £20 by sending you back home and then re booking you for an hour if it was a 6hr job.

 

[Octopus]

I don't like that really. That will bite you one day as a customer will see they are being charged for you not filling your day. They would save £20 by sending you back home and then re booking you for an hour if it was a 6hr job.

I disagree with you. If the customer accepts the price then that's between them and the contractor.

Try and get a plasterer to charge for 5 or 6 hours rather than a day....

 

[joehat]

Yes because any job that takes 5 hours will knacker the day so I charge a day as it leaves a useless length of time.

I fit paperwork In on those days.

 

[Welchyboy1]

I fit paperwork In on those days.

I would fit in a call out on the way to the job and another one in on the way home and still charge a days money for the five hours in the middle, i would however give them a days worth of work whilst i was there for that five hours

then i do my paperwork on sunday mornings

 

[Piratepete]

Try and get a plasterer to charge for 5 or 6 hours rather than a day....

Some good plasterers round here only charge £100 a day. How they run a van, keep a family and pay off a mortgage on that, I can't imagine! I wouldn't have the gall to pay them less for a part day! Also plasterers don't tend to have an hourly rate - they quote the job, the price depending on who the customer is.

Pete:43:

 

[Hellmooth]

£100 a day is just farcical

 

[Deleted account]

£45 first hour £35 per hour thereafter £225 day rate. If quoting for a cu change or full or part rewire more.

 

[Welchyboy1]

I try to avoid working on a day rate at all costs, i use a cost per day to work out pricing for larger jobs but would never quote a day rate to a customer, NEVER!

quote what the job is worth for decent profit for YOU!

quickest way to cap your earnings is to work on a day rate!

the customer expects you there all day(and a discount if not)which also ruins your chances of fitting in other work to boost your profit, plus all extras are expected for free if you fit it into the same day, ive even had a customer asking me to hang pictures up to make up the rest of the day, cause i finished his list of jobs early!!

its really bad for business, working on a day rate!!! Only work on a fixed price, and a callout/ hourly rate for faults etc

get in, get out, get paid, next job, no time constraints, or expectations from the client!

 

[davesparks]

I try to avoid working on a day rate at all costs, i use a cost per day to work out pricing for larger jobs but would never quote a day rate to a customer, NEVER!

quote what the job is worth for decent profit for YOU!

quickest way to cap your earnings is to work on a day rate!

the customer expects you there all day(and a discount if not)which also ruins your chances of fitting in other work to boost your profit, plus all extras are expected for free if you fit it into the same day, ive even had a customer asking me to hang pictures up to make up the rest of the day, cause i finished his list of jobs early!!

its really bad for business, working on a day rate!!! Only work on a fixed price, and a callout/ hourly rate for faults etc

get in, get out, get paid, next job, no time constraints, or expectations from the client!

So how do you do fault finding or labour only jobs?

 

[Welchyboy1]

So how do you do fault finding or labour only jobs?

Says in post how i charge when fault finding, wouldnt touch a labour only job

 

[Andy78]

I try to avoid working on a day rate at all costs, i use a cost per day to work out pricing for larger jobs but would never quote a day rate to a customer, NEVER!

quote what the job is worth for decent profit for YOU!

quickest way to cap your earnings is to work on a day rate!

the customer expects you there all day(and a discount if not)which also ruins your chances of fitting in other work to boost your profit, plus all extras are expected for free if you fit it into the same day, ive even had a customer asking me to hang pictures up to make up the rest of the day, cause i finished his list of jobs early!!

its really bad for business, working on a day rate!!! Only work on a fixed price, and a callout/ hourly rate for faults etc

get in, get out, get paid, next job, no time constraints, or expectations from the client!

That completely depends on what your day rate is and who you are working for.