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Discuss Doubting myself , raised prices and am I now over charging in the Plumbing Jobs | The Job-board area at PlumbersForums.net

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rjm84

Hi, i either need a confidence boost or to be put straight on what I'm charging .
I raised my prices last year, as overheads were increasing and I wanted to take a bigger profit to re invest in myself,and was doing ok through the winter, but since xmas
I'm losing more jobs than winning , and some of the prices I'm up against are making me look like I'm a rip off
Just want to check if my labour seems ok

Full heating I look to take £2k labour, supply fit boiler and 7 £4.5k

Open vented Conversion £1500 labour ,
£2800 supply and fit ( 3k if back boiler

Combi combi £700 labour
£1900 supply and fit

Birmingham area
Seems a lot seem to be fitting full installs for a grand at the moment , am I really that far out ?
I've a couple of full installs I'm quoting up , would I be better dropping prices back to £1500 like I was doing them at
 
I can give you one customer's perspective.

I am very suspicious of installers, etc. who compete on lowest price because I know that they need to earn a living so they'll probably be cutting corners somewhere. So, it boils down to me trying to decide am I going to get what I want based on (a) a conversation followed up with (b) the written quote.

For (a), first impressions count. Turn up on time or let me know if you will be late due to to an emergency. Arrive in a tidy van. Listen to what I say and allow enough time to explain some basic options. If you do this part right you greatly increase the chance of winning the job.

For (b), make your quotes really professional. They should be itemised and specific. Include manufacturers and model numbers, materials and methods. If you do work to comply with specific codes say so because if you say, 'Pipework installed to comply with British Standard xyz...' and your competitors don't that explains why you are, and should be, charging a bit more and makes the customer doubt the skill level of your competitors.

It's (b) where a lot of otherwise good traders fall down. If I am spending thousands of pounds with someone I've not used before and get a quote that is vague, or badly spelled, or doesn't add up, it's a deal-breaker for me.

It will increase your chance of getting the work if you provide two quotes, one about 20% more expensive than the the other, e.g. more sophisticated controls. Include a brief covering note explaining the differences and your recommendations. As well as offering the customer 'choice', it also conveys the impression that you are trying to find the best solution for them, which builds confidence.

C.
 
I can give you one customer's perspective.

I am very suspicious of installers, etc. who compete on lowest price because I know that they need to earn a living so they'll probably be cutting corners somewhere. So, it boils down to me trying to decide am I going to get what I want based on (a) a conversation followed up with (b) the written quote.

For (a), first impressions count. Turn up on time or let me know if you will be late due to to an emergency. Arrive in a tidy van. Listen to what I say and allow enough time to explain some basic options. If you do this part right you greatly increase the chance of winning the job.

For (b), make your quotes really professional. They should be itemised and specific. Include manufacturers and model numbers, materials and methods. If you do work to comply with specific codes say so because if you say, 'Pipework installed to comply with British Standard xyz...' and your competitors don't that explains why you are, and should be, charging a bit more and makes the customer doubt the skill level of your competitors.

It's (b) where a lot of otherwise good traders fall down. If I am spending thousands of pounds with someone I've not used before and get a quote that is vague, or badly spelled, or doesn't add up, it's a deal-breaker for me.

It will increase your chance of getting the work if you provide two quotes, one about 20% more expensive than the the other, e.g. more sophisticated controls. Include a brief covering note explaining the differences and your recommendations. As well as offering the customer 'choice', it also conveys the impression that you are trying to find the best solution for them, which builds confidence.

C.
Hi
My quotes are professional, really nicely laid out
First page will include a description of work , materials price , labour price and grand total
Second page is like an excel chart , itemising materials so they can see a breakdown for what they're paying for , I tend not to just give one price for supply and fit
I normally give a couple of options for a job , usually what the customer has asked for , and what I think is best, or different controls ,
Customers don't really see hidden costs either , tax , advertising , insurance , van , it all adds up , I need to be able to make a wage , pay overheads and turn a profit .
Charging £200 a day like a lot seem to is pointless, as I could make that working for someone
 
You can never keep up with the "going" rate so most either have a rate that will undercut everyone every time and others (like you) have a rate that will be higher than others most of the time.
This is why you see shocking price difference because you are comparing yourself to someone who has been undercutting all the time.
When I started out I was undercutting, every single quote was accepted but I needed it because I had one quote to do a month. This is an exception though, I've changed my pricing but I know for a fact that many poor sods go on with this practice untill they run themselves into the ground.
The problem is the opportunistic customer. They only see the ££ savings they can make. They never realise the bloke who quoted £400 combi swap aims to do that in a day and the £700 quote allows two days and is therefore effectively cheaper per hour. They never realise the £700 quote allows for a return visit to explain how thermostat works or to bleed /balance radiators. They dont realise that the £400 bloke bodged it up so much he will never answer their single call.
No one benefits from doing work for peanuts, so stick to your prices and see how long others last till they drop or get smart
 
I'm with the above post. I think in the beginning everyone needs the work so everyone is really competitive. Now however, I put my price together, email the customer the estimate/quote depending on if I think I may hit a problem or not hence estimate or quote and if I get the work I get the work. I got so tired spending my evenings quoting and not winning work or customers asking me to lower my price that now I stick to my guns. You get what you pay for in this game!
 
I think that except for businesses that have been established for years and years, the construction industry has definitely slowed since the start of the year. Signs of this include (paradoxically) many new businesses around the area (employees being laid off), stupidly low competitor quotes (desperation to buy work), no jobs on the Jobcentre website locally for plumbers and a marked decrease in quote requests for luxury items such as new bathrooms and kitchens.

Don't take it personally! We will be back in recession before the end of the year imo. It will last 12-18 months as they all do then business will pick up!
 
I usually give my customers an estimate, and if no other problems arise or the don't decide they want extra work done while I am there. It generally is dead on. Why under estimate. If you are good at your job recommendations always add extra credibility.
 
All works out in the end bud you may quote more and not win em , but the ones you do win you earn good money so dont have to work so hard we can all work for free bud stick with it for now maybe dont break it down so much on your quote . cheers kop
 
All works out in the end bud you may quote more and not win em , but the ones you do win you earn good money so dont have to work so hard we can all work for free bud stick with it for now maybe dont break it down so much on your quote . cheers kop
I thought that, but did not post it. I believe even though a good engineer is happy to try to give the customer what they want. Sometimes it is easy to give out to much information and you could end up shooting yourself in the foot. I did this in the beginning.:( But you tend to learn very fast.
 
Its all about how you come across to the customer i just keep it simple if you come on to strong it can come across as being a bit desperate , reputation,reputation reputation is the key never ever had to advertise but it takes years and years of graft to build up a strong clientele if people dont like you then they wont employ you be happy, friendly, trustworthy and good communication has served me well regards kop .
 
Its all about how you come across to the customer i just keep it simple if you come on to strong it can come across as being a bit desperate , reputation,reputation reputation is the key never ever had to advertise but it takes years and years of graft to build up a strong clientele if people dont like you then they wont employ you be happy, friendly, trustworthy and good communication has served me well regards kop .
True, you cannot be everyone's cup of Tea:p:p
 
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