Work costs

[Bernie2]

I suppose if you work for yourself you can virtually dictate your own job price.

But building up a private rate paying clientèle can take years. Many small to medium firms have to rely on the likes of Housing Associations or sub contracting to get enough work to keep going.

The thing is in this type of work, unlike private work, the customer will usually tell you how much they want to pay, take it or leave it. So its in the small to medium companies interest to keep their running costs down as low as possible, as I have said before that has to include training costs.

Other than that of course its got to include speed and efficiency. If they offer you a job, say a gas service at £20 a time, don't forget these companies who give the work out, may know the cost of work better than the firms who do the work.

The only way you can make that pay is by doing loads of them a day, so the higher your overheads the more you have to do just to cover costs.

If you don't want to go at break neck speed all the time you have got to be efficient and have low running costs.

 

[Hugh]

I totally understand this, this is my first year in business and at the end of the month when the bills come in i know if i have lost money or made money, Im finding it very hard to get £20 an hour on private jobs when you tell the customer the cost of material + your labour charge they look at you like you have 2 heads, joe blogs can never see the cost of runnin a van and office, times are tuff but im sure ill come out on tops in years to come.

 

[helpsy]

I have recently started out on my own, and it's quite daunting at times.I have decided to give the customer a price all inclusive time,materials etc and as I'm new into it there is less pressure to rush the job as it's fixed,and I know with experience my speed will pick up.I'm just concentrating on trying to do the job right and keep people happy, and not have to rush, and as the customer has a fixed price it seems a bit more relaxed all around.I try to think what an experienced plumber would charge for the job and work the time into my bill.If I go over the time in my head(which I end up doing a lot) then I've got a better idea next time.

 

[Flanners]

Good approach 'helpsey' this way everyone knows where they stand. And you will also be more likley to get a cup of coffee as customer wont be worried about an hourly rate.

'HUGH' at £20ph you may aswell work for someone else and have less the hastle!!! However if your only consentrating on plumbing and not (servicing, faultfinding, heating systems, gas work, renewables etc) you may struggle to get that rate.

 

[justlead1]

Hi. A simple way to calculate a break even rate is to add up all expense. Like £2000 a year for van,plus insurance, replacement tools, etc. Then think how many hours a week you want to work. (say 42 hour for 45 weeks) Then how much of a wage you want (say £600 a week)
EG.
Expenses plus wage, say = £34200

Time you wish to work, say = 42 x 45 = 1890 hours

divide £3420 by 1890 =£18.09 per hour

However giving customers a price based on what you intend to do, in my experience is by far the best way, as all parties know where they are. But you must sell yourself, giving the potential client the confidence to spend with you. Good Luck

 

[HTB]

Hugh, I'm originally from Co Antrim and I know what you mean about NI rates.

When I go home and chat about charges they look at me like I'm from Mars, people in NI do not pay big money to tradesmen, every one knows someone (usually a dolite) who will do a cheap job for a packet of **** and few beers. Its the way it is.