quoting for work

[Octopus]

I quote for the complete job - I NEVER separate out the parts..... the minute you down that route you will get beaten down on price ALL the time. Beware the client with the Screwfix catalogue on the kitchen table!

If customer supply parts, I make sure I'm involved in the choice, remind the client that I will NOT cover any warranty on such parts and I also increase my hourly rate to cover the hassle.... and if they get it wrong, then I charge for all time lost.

I get about 80% of my business from recommendation or repeat business, so my strategy seems to work.

 

[leep82]

Having recently gone self employed i often wonder whether im to cheap or even to expensive with my price. Generally only do small works for now, and once ive been to look at a job i have a good idea of how long it will take me. I then use an hourly rate to determine my price. I get some customers wanting to supply there own materials others are happy for me to supply. One thing i never do is give a ' rough cost ' over the phone. That extra socket or lighting point might only take you an hour but when you get there and theres no bonding to the gas or water try explaining how your original price has now probably more than doubled

 

[Octopus]

Having recently gone self employed i often wonder whether im to cheap or even to expensive with my price. Generally only do small works for now, and once ive been to look at a job i have a good idea of how long it will take me. I then use an hourly rate to determine my price. I get some customers wanting to supply there own materials others are happy for me to supply. One thing i never do is give a ' rough cost ' over the phone. That extra socket or lighting point might only take you an hour but when you get there and theres no bonding to the gas or water try explaining how your original price has now probably more than doubled

Hit, nail and head spring to mind.

The only cost I will quote over the phone is my minimum charge for PAT testing!

 

[Toneyz]

Think I'd be quoting 100% the cost of parts plus labour & vat on top.

are you VAT registered then

 

[Andy78]

I joined this forum when starting self employment and it was invaluable to me for advice from the experienced. I'll try to pass on what I was told and also what I have learned in the past 5 years.

Don't worry too much about being too cheap or too expensive, you'll always be one or the other sometimes depending on others that quote and the means and expectations of the customer. As long as you are priced so that you are earning what you need then your prices are right for you.
If you are losing most jobs you are too much, if you are winning every job you are too cheap. Simple.

If you are aiming to be in the middle of the local market price wise, just stick to your prices and the customers you want should gravitate to you in the natural order of things.

A first hour charge is essential if doing lots of small domestic jobs as it covers your time and expenses bobbing about between jobs. More than that though, it weeds out the skinflints at the first hurdle. Those more likely to quibble an hours time for a small simple job are not the ones you want to running about after.

For small jobs, callout jobs, or other jobs on an hourly rate, I always quote my prices over the phone before even agreeing to turn up. Amazing how many people don't ask, I often end up saying "would you like to know my rates ?" There is always the odd one who "Will ring me back" after hearing them.

 

[Leader]

This is something I struggle with too, not wanting to undersell myself but not wanting to be greedy. My other half is a painter decorator and I've been telling her for years that she doesn't quote enough. She gets a lot of work purely through recommendations and works long hours. The other thing I really need to do is some proper cost analysis on different wholesalers and set up a spreadsheet as it's hard keeping track mentally of where different materials are cheapest. Has anyone else done something like this?

 

[GMES]

I do feel for the guys who purely do domestic because it must be a pain competing with all the big chains for materials and kev the kitchen fitter for the Labour, but as already said by the guys in the know-don't sell yourselves short, I realise I am very fortunate to only deal with Industrial and commercial work, as an example I have been on a project now that has spanned from october 2015 and won't end until later this year and too be fair most of it has been a case of providing a rough cost per section of the job but I have never been held to a figure, but obviously the downside can be large amounts of money outstanding at any one time and that's not something that suits all Electricians.

 

[SparkyChick]

The other thing I really need to do is some proper cost analysis on different wholesalers and set up a spreadsheet as it's hard keeping track mentally of where different materials are cheapest. Has anyone else done something like this?

Not exactly, but I know that if I want MCBs, RCBOs I go to TLC because I find them cheapest, same with bulk cable, but for nearly everything else I find I can get a better deal at ScrewFix for equivalent parts from the same manufacturer.

I do have a standard price list for commonly used items (like Wagos, cable, socket outlets, backboxes etc.) which I update when I buy say a new reel of cable to reflect the price per m of that reel as it does seem to be quite variable.

I did set out with the intention of getting the best price for the customer on every quote, but if you do that religiously, you'd never do anything else, so if it's something I've not supplied before I go looking, but in most cases I just use my price list and buy from the supplier I used last time.

 

[Andy78]

This is something I struggle with too, not wanting to undersell myself but not wanting to be greedy. My other half is a painter decorator and I've been telling her for years that she doesn't quote enough. She gets a lot of work purely through recommendations and works long hours. The other thing I really need to do is some proper cost analysis on different wholesalers and set up a spreadsheet as it's hard keeping track mentally of where different materials are cheapest. Has anyone else done something like this?

Nope. I use one wholesaler for 95% of my gear. Giving them most of my trade lets me work out deals for the stuff that is not the cheapest with them. The stuff they can't compete on just stays in a mental log.
I don't get everything the cheapest with them but a few percent here and there is worth the convenience of a one stop shop, both for materials collection and for billing.

 

[gazdkw82]

I agree with you on that Andy. I prefer the idea of using one place, building a rapour and benefit from maybe extra customer support

 

[Octopus]

I use 3 suppliers, 2 big ones and 1 local independent ..... These 3 all know where they stand and like Andy if something is a little more than another supplier its not worth the paperwork and wasted time collecting the kit.

With loyalty you get strong relationships and I've never had a warranty return quibbled, nor on the rare occasions slipped up and bought the wrong part, had a return and credit declined.

Chasing around to save a pound or 2 simply isn't worth it...