Prices?

[macka09]

Hi guys I know there's a lot of variables when pricing jobs but is there a general rule of thumb for appliances?

I keep being asked for prices by friends and family and I know I'm cutting myself short. Any advice and guidance would be appreciated.

 

[rocketmanbkk]

I'd say depends what it is.

How long to do it, have you got to run around & buy stuff

Don't do for nothing, depends who it is. Mum = free

 

[rpm]

All depends on what your happy with at the end of the day, biggest problem I see is when the price varies because of work involved but family members don`t appreciate that aspect of it.

 

[macka09]

I don't mind doing anything for family but I struggle to price most jobs really. I've got no structure at all. Where as friends of mine charge per item or appliance. Like £120 for fitting a bath or £80 for outside tap.

 

[JCSPLUMBING]

£120 for a bath. No chance. I want at least £180-£200. You've also got to dump the old one. Take battens/ fittings and sealant out of that.

 

[mfgs]

The way I work things out is to find how many working days there are in a year. Take off how much time off you want, for example 20 days on top of the bank holidays. Then work out all your over heads, van repairs, any repayments, diesel, insurances etc etc and a little allowance on top for anything unforeseen. Then pick what wage you want to be earning, add on the overheads and divide by the number of working days. That gives you your target of what you need to be earning each day to achieve that. Now from experience if a bath takes x amount of time you know roughly what you need to be making from it. This will give you a ball park area anyway, its not an exact science.

 

[WaterTight]

The way I work things out is to find how many working days there are in a year. Take off how much time off you want, for example 20 days on top of the bank holidays. Then work out all your over heads, van repairs, any repayments, diesel, insurances etc etc and a little allowance on top for anything unforeseen. Then pick what wage you want to be earning, add on the overheads and divide by the number of working days. That gives you your target of what you need to be earning each day to achieve that. Now from experience if a bath takes x amount of time you know roughly what you need to be making from it. This will give you a ball park area anyway, its not an exact science.

That formula presumes you have full days every day. One of the biggest things to factor in is wasted days, cancelled jobs, over-long jobs for fixed prices and weeks where the phone doesn't ring.

 

[mfgs]

That formula presumes you have full days every day. One of the biggest things to factor in is wasted days, cancelled jobs, over-long jobs for fixed prices and weeks where the phone doesn't ring.

That is where profit on materials helps. Also just because you don't have a big client base or enough advertising etc doesn't mean you can charge a massive premium because you cant get the phone to ring. It is only a ball park figure as to roughly what you need to aiming towards.

 

[SimonG]

That formula presumes you have full days every day. One of the biggest things to factor in is wasted days, cancelled jobs, over-long jobs for fixed prices and weeks where the phone doesn't ring.

Oh to have the phone not ring. Turning it off doesn't work, I just get blitzed with voicemails and messages when I turn it back on.

 

[macka09]

I understand what your saying but if I only had one job booked in on a particular day, and I've worked out I need to earn £220 a day. Surely I can't be charging £220 for a job installation ??

 

[oz-plumber]

Hi Macca,

I've said this numerous times on this forum.

If you had employees working for you, you would have to charge a minimum rate to cover their wages and expenses.

You should work out the minimum hourly rate that it would cost you to employ someone including expenses, and charge that hourly rate as an absolute minimum.

You would not send out an employee to do a job, and lose money on that job, because it cost you more to send out an employee than it cost to do the job.

Stop doing favours for people and start doing yourself favours.

You stated that you know you are cutting yourself short.
Does your mate /family member sell you petrol or grocery's from their shop cheaper than it costs them to buy the products.

 

[macka09]

Very true.

 

[mfgs]

I understand what your saying but if I only had one job booked in on a particular day, and I've worked out I need to earn £220 a day. Surely I can't be charging £220 for a job installation ??

If its a full days work then of course you can charge that. Its all about creating an image of high quality service. If you turn up in a beat up old van wearing a pair of tracksuit bottoms and reebok classics then people may not want to pay it. You turn up in a clean van, doesn't have to be new but not all dented and rusty, have nice branded polo shirt on a trousers which aren't covered in silicone and you automatically present yourself as a better product to the customer.

 

[macka09]

Thanks for the advice.

 

[Millsy 82]

The way I work things out is to find how many working days there are in a year. Take off how much time off you want, for example 20 days on top of the bank holidays. Then work out all your over heads, van repairs, any repayments, diesel, insurances etc etc and a little allowance on top for anything unforeseen. Then pick what wage you want to be earning, add on the overheads and divide by the number of working days. That gives you your target of what you need to be earning each day to achieve that. Now from experience if a bath takes x amount of time you know roughly what you need to be making from it. This will give you a ball park area anyway, its not an exact science.

That is what I did. I do find that it evens itself out say over a month as some days you will earn over that amount and others you earn under.

The trick is times not so much the prices if you keep pricing things for 2 days and it takes 3 that's when I find the problems start. This is why I stopped pricing bathrooms as I couldn't get them right I was either miles over and the customer didn't want it or I'd cut it a bit shorter but overrun so working for less.

What I tend to do is 2 days for a boiler swap, 3-4 days heat to combi and 5 plus for installs.

 

[mfgs]

Pricing job correctly comes with experience. It probably took me about 2-3 years to work out what I should be charging and how long certain jobs generally take. It also took a while for me to have the confidence to price myself out and what I should be, I kept undercutting myself and going in cheaper than I should. From when I started out, to now 4 years down the line, I have increased my prices by about 40%. I am still very busy and I have had a subby working for me practically full time for the last year. I lost some customers each time I increased the price, but the ones I kept are the ones that just want a good job done at a fair price.

 

[WaterTight]

Also just because you don't have a big client base or enough advertising etc doesn't mean you can charge a massive premium because you cant get the phone to ring.

Not massive, no. But if factoring quieter periods into your overall calculations meant your minimum charge should be £50 instead of £40 and that that made there difference between sink or swim then it would be wise to do so. Especially if - as most people report - it has a beneficial effect on the quality of your customers.

 

[WaterTight]

You turn up in a clean van, doesn't have to be new but not all dented and rusty

I just park round the corner. Saves me a fortune.

have nice branded polo shirt on a trousers which aren't covered in silicone and you automatically present yourself as a better product to the customer.

I just move around behind a concertina dressing screen on wheels. Saves me a fortune.

 

[JCSPLUMBING]

I wear a logo branded polo shirt every day, new trousers monthly and keep steel toe cap trainers on. I always lay dustsheets before I get any tools from the van and I am polite but not a push over. This in itself is worth more to some customers as they like to see professionalism. I send invoices and give receipts also. Just mimic some of the bigger firms and then you'll see how business should be done. it took me near on 5 years working self employed to work this stuff out. I quite often cut my own throat with prices.