Boiler repair pricing,especially at this time of year.

[A1P]

This is my first full year as Gas Safe registered and find I am getting lots of call outs.I suspect my charges may be on the low side.When you add up getting there,diagnosing,getting to and from merchant ,fixing,it becomes a long job.I have tended to charge for time spent on property,xx for first hour and per 15 mins after that.It would seem you could become a 'busy fool' at this time of year.It might well be that the market would stand e.g. 4 x £70 instead of 7 x £40.I do have the long view that each new customer is gold dust and that every dodgy boiler is a potential boiler swap.I am not one to profiteer but I am beginning to think that busy winters can cover quieter spring/summer.
I would welcome thoughts of experienced guys and possibly some prices, if this is in a secure place for pricing.

 

[Reltub]

You currently charge £40 for first hour?

 

[Leo21]

Isn't 7x40 the same as 4x70?

 

[iain85]

I think A1P is alluding to the fact it's busy to earn the same for
less work with higher prices.
i suppose it,depends on where you work and market forces but I reckon that's too cheap personally.

 

[Leo21]

£40 p/hour us to low. Supplying parts and putting a mark up on them helps.

 

[A1P]

Isn't 7x40 the same as 4x70?

What I was intending to say was 4 jobs at £70 earns the same 7 jobs at £40 and much less work.As someone else pointed out ,it is a matter of what the market will stand.I have been to some call outs this month where people have been charged £100 an hour labour and the repair has failed.I just want to be fair to myself and the customer.As a 1 man band you can only get to so many.I spent virtually all day today at a Gledhill Pulsar 3 .It was in an horrendous state in spite of having 2 previous engineers to it charging eye watering rates.I am trying to decide what to invoice.

 

[julesverne]

you have to make hay while the sun shines or in our case whilst everyone is freezing their Bristol Cities off. your a business not a charity although i do have a soft spot for the older ones.

 

[Reltub]

What is the average call out charge?

 

[Leo21]

Does anybody actually charge call out? I charge for time in site, even for inspection and diagnosis.
I find sometimes when you are on a repair all day unexpectedly, you have to take a bit of a hit. You have to make a living, but you can't upset people to much either. It's a tough balancing act.

 

[Reltub]

I thought most people charged a rate for first hour then cheaper rate for every hour after

 

[A1P]

Does anybody actually charge call out? I charge for time in site, even for inspection and diagnosis.
I find sometimes when you are on a repair all day unexpectedly, you have to take a bit of a hit. You have to make a living, but you can't upset people to much either. It's a tough balancing act.

I agree today looks like £50 first hour then £20 an hour after.I was phoning everywhere for parts then touring 3 merchants.Had to move a job until tomorrow.The bloke had been stuffed financially twice,I know that's not my problem but at least I should have future business and referrals.Left a wad of cards!!!!!

 

[stevetheplumber]

still to cheap id say 60/ 40

 

[diamondgas]

Personally I don't enter a home unless they know it'll cost them £40 ... if that's a call out then so be it? Then I'm happy with that, plus parts etc! My mark-up is to the nearest '0' pounds..! If I'm sourcing parts then next visit starts at £30 ... It does me, if I'm honest, but I'm no longer in this job for the money! I'd have to work all the hours God sends for that!! I get bye

 

[ambrosia]

£40 per hour is mental, you really are unselling yourself

these people own houses, despite their moaning they are not poor, i dont own a property so theyre richer than me, this time of year i charge £70 hr for regular customers and £90 for new customers and I mark-up what ever i think i can get away with, often double, some times triple, i'll tell a customer that a glowworm betacom costs £1600 plus flue copper and labour without a hint of guilt


as for OAPs, we have in our minds struggling old folk who nearly died in the war for us, but thats a myth, most of that generation have moved into homes etc.
Most that we deal with are baby boomers, who benifited from full employment, crazy property boom, final salary pensions, a NHS and pension system which we pay for but will no longer be around by the time we need it. Theyre a privillaged generation exploting the perseption that theyre hard-up created by previous set of OAPs.
If they want me to fix there boilers they can pay just like everyone else

 

[gassafe]

£40 per hour is mental, you really are unselling yourself

these people own houses, despite their moaning they are not poor, i dont own a property so theyre richer than me, this time of year i charge £70 hr for regular customers and £90 for new customers and I mark-up what ever i think i can get away with, often double, some times triple, i'll tell a customer that a glowworm betacom costs £1600 plus flue copper and labour without a hint of guilt


as for OAPs, we have in our minds struggling old folk who nearly died in the war for us, but thats a myth, most of that generation have moved into homes etc.
Most that we deal with are baby boomers, who benifited from full employment, crazy property boom, final salary pensions, a NHS and pension system which we pay for but will no longer be around by the time we need it. Theyre a privillaged generation exploting the perseption that theyre hard-up created by previous set of OAPs.
If they want me to fix there boilers they can pay just like everyone else

With those prices I'm surprised your not a property owner lol!!

 

[Deleted member 32524]

I have a sheet with 3 separate log spaces for visits Head it with company name and address. Their details and the like. So I get paid for the first visit if i need to go back as it is on the time sheet. Personally I add a little to parts and do not charge for the time to get it, only time on site.

I also cap my labour rate if it is a long and painful repair taking more than 4 hours. Then if it is a real bit'h and it is longer than a day then offer a discounted hourly rate for the next day. Always do a deal for them if it is a biggie you still make good money and it keeps the bill from getting crazy.

 

[AMGasServices]

We usually charge £49 call out to new customers. And charge some on mark up on parts. Regular customer just get charged as the job and mark up on parts. In winter work is busy a lot numpties call and waste our time.

 

[ambrosia]

With those prices I'm surprised your not a property owner lol!!

okay my rant was probably a little strong, I just get really anoyed by people whinging about being poor when its quite clear theyre just trying to manipulate you, landlords are the worst, its their 2nd or third property but they cant afford to pay for essential maintenance

£40 per hr is taking the pi$$. You shouldnt think about it as what the customer is willing to pay, its what youre willing to except

I know a carpenter who charges £60 per day and at london prices thats just ridiculous, people think you get what you pay for and at that price they just think he's just going to be a doughnut

 

[Leo21]

£40 per hours not to bad iff your doing it as a full day rate. Eight hours, good for days when you've got no materials to speak of.

 

[LPC]

Don't charge for callout. £45 for first hour.

I'm not complaining. Earn more than enough to lead a nice life

And then how much do we earn an hour when we do their boiler a few years later and they don't get any other quotes

 

[A1P]

Don't charge for callout. £45 for first hour.

I'm not complaining. Earn more than enough to lead a nice life

And then how much do we earn an hour when we do their boiler a few years later and they don't get any other quotes

I am enjoying the wide range of comments so far.I chose to respond to this one first because it picks up on the long term view when dealing with customers especially new ones when you are growing your business.

I have been to new customers recently who have not only coughed up £75- £100 for first and next hours but have had poor service.I know they will use me again and provide referrals.I am going to adjust my prices but I came across a saying the other day which said 'you can only kill a sheep once but you can keep it and shear it for many years.' Fair price on repair and good job.Service it until boiler eventually packs up.Replace boiler.Service it.Good for customer,good for business.

 

[Leo21]

Just out of interest, how long have you been trading and charging those prices?

 

[A1P]

[UOTE=Leo21;591512]Just out of interest, how long have you been trading and charging those prices?[/QUOTE]

7 years and I grew the business slowly solely through referrals while putting myself through college 1 day a week over about 4 years.Where I live ,just in my area of Bradford ,there are 30 plumbers/heating engineers within 3 miles.I shudder to think how many in Bradford.I have tried to charge competitively but not tried to buy business.I am aware what competitors charge and I have been close to/same as them.Regional factors are important.Even in West Yorks,Leeds,Ilkley/Harrogate are very different to Bradford.

I worked with another plumber who remains a friend.He was lucky enough to get to a stage where he had such a strong customer base he could afford to be selective about jobs.He would throw a silly price at a bathroom he didn't want and if he got it at least it paid a very good rate.

I feel I am just getting to a point where I can think carefully about charges which would keep customers but also ensure I am not a 'busy fool'.This is my first full year of being Gas Safe and I wanted to make sure I made the best use of this busy period so posted this thread.

 

[Leo21]

So you've been charging those rates for seven years?

 

[Leo21]

To much info on here for open forum. Can a mod move it please.