How do you guys cost your jobs?

[Octopus]

Even for domestic?

If not more and the first hour should be higher.....

 

[buzzlightyear]

my rate is £30.think about it scams, van, insurance etc...

 

[Mark.W]

So when working on domestic you work over 10 hours per day?

I tend to use the £22.50 for the smaller jobs, but if its a larger job like a re-wire where I'll be there for say 8/9 days then I price it on a day rate. In hind sight I may have been wrong in doing this.

 

[Mark.W]

my rate is £30.think about it scams, van, insurance etc...

I put the scams, van etc in my O/H calculation, that why its slightly higher than everyone else's.

 

[Octopus]

I tend to use the £22.50 for the smaller jobs, but if its a larger job like a re-wire where I'll be there for say 8/9 days then I price it on a day rate. In hind sight I may have been wrong in doing this.

So if you manage 5 x small jobs in 1 day (allowing for travelling and getting parts between jobs, you will gross £112.50 - that's no way enough given you then need to deduct about £31 overheads - which makes your 8 hour day, out and about worth a paltry £10.18 per hour

 

[Octopus]

I put the scams, van etc in my O/H calculation, that why its slightly higher than everyone else's.

Those ARE overheads.

Everything that isn't resold to a client is an overhead ....

 

[buzzlightyear]

half a days rate 4 hours £125.00 . 4/125.00=31.25.

 

[Mark.W]

Those ARE overheads.

Everything that isn't resold to a client is an overhead ....

yeah I know, what I'm saying is I have a separate line in my costing for overheads, I don't include the overheads in my labour rate.

I do my labour rate and then add on my overheads etc.

Does that make sense.

Here's a typical eg of my costing sheet.

Cost of Materials Incl Vat 249.26
+ MU @ 20%. 49.85
= Material Sell 299.12

Labour Rate @ £22.50/hr
16 Hrs 360.00
+ MU @ 20% 70.00
= Labour Sell 432.00

Overheads
Fuel @ 0.69 p/mi
19 Miles 26.22. (Based on 2 days travel return trip)
Other (Insurance etc) 85.71
Total Overheads 111.93

Job Sell 814.05

0% Contingency -

Customer Pays 814.05

 

[Octopus]

why are you putting mark up on labour .......... unless you employ sub contractors?

I think your model is too complicated ........

 

[Mark.W]

why are you putting mark up on labour .......... unless you employ sub contractors?

I think your model is too complicated ........

Not sure that's what I've alway done. Seems to work so far, I win about 70 - 75% of my jobs.

 

[Octopus]

I know my overheads, I aim for 220 days per year ....... My "hourly" rate includes my overheads, so all I have to think about is the number of hours a job will take!

surely simplifying things would make it easier, and quicker to do quotes ?

 

[Mark.W]

I know my overheads, I aim for 220 days per year ....... My "hourly" rate includes my overheads, so all I have to think about is the number of hours a job will take!
surely simplifying things would make it easier, and quicker to do quotes ?

Yeah I agree, it does seem to simplify things , and this exactly the advice I was after. This is why I asked how everyone else costs their jobs. Cheers

 

[telectrix]

£40 a call-out... small jobs @ £30/hour after 1st 30mins. larger jobs, if above 1 day then £25/hour. anything i can't write on a beermat, then a written estimate/quote.

 

[Octopus]

My first hour charge has been £50 since 2011 ..... for small jobs

 

[Mark.W]

I think I am just very "Bullet pointed"

I like to see on paper, what I have earned, what my O/H costs are, what my materials cost are etc.

If I was to add my O/H into my labour costs I wouldn't really know what to pay myself and I think that may come with time.....

 

[Octopus]

If I was to add my O/H into my labour costs I wouldn't really know what to pay myself and I think that may come with time.....

I use Quick Books, so at the end of every month I can see to the penny how much profit I've made, and precisely what my overheads were .....

BUT as we all know overheads vary per month so budgeting and having spare cash in your business account is very important.

 

[telectrix]

say you want wages of £15/hour..... work out the cost of tour overheads per week ( e.g. £200), then divide by 40. thats 200/40 = 5. so you charge 15+5 =20/hour.

 

[buzzlightyear]

when a customer ring up and they say what is your h/r none .
I charge by the job.

 

[buzzlightyear]

we need to adopt what they do in Spain ,charge to see the job ,before they start it .

 

[Mark.W]

I use KashFlow, which is nice for quoting, invoicing etc. Looked at Xero but not really looked at Quick Books. I've only been Self Employed since May last year, before that I was always on the cards, so this is a good learning curve for me, and your advice and knowledge is much appreciated. At the moment my O/H vary from £400 to £900pm because I've had van signage, clothing etc. I think once that all settles down I'll have a better understanding of my monthly O/H's.