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

 

[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.