Pricing + acceptable rates and mark up

[Chester]

Hey guys, recently had a bit of a dispute over a quote asking me to break it down etc saying they can buy this from X for Y.. how much is labour/materials.. shockingly it was from friends so it's taken its toll on me mentally if I'm honest.. I'm don't think I'm outrageously pricey but I do a good job and people know that. The job I quoted for is part of a much bigger job that I'm now feeling guilty over making any profit on other than wages whilst drawing up the interim invoice, I asked what the budget was pre starting and they said there isn't, that doesn't mean I've thrown my usual calculation methods out but I've not gone speedfit bonanza either.. I know the general way to work out an hourly rate but that depends on the van you drive etc too, I'm talking for larger jobs too, like this job is 2 bathroom Reno's (1st and 2nd fix, one was a bedroom being converted into a shower room) I've done the stud work for it too, a kitchen 1st and second fix, vented to unvented convert.. rad removals, plus a load of other carpentry related bits.. I'm at a loss as to what's an acceptable day rate, acceptable hourly and acceptable profit margin on larger work plus markup %s, Atm I day rate look for £250 if possible, smaller jobs 60£ first hour then 30£, anything over 5 hours I consider a day really.. markup flat 20% and then say for this job I would do a day rate for the amount of days I think it'll take then add on 20% on labour for the inevitable balls ups which serves as my "profit" if I hit my guesstimated daily allowance. 20% markup materials, I still feel like this only buys me a day or 2 tbh and considering the risk it's quite demotivating. Any advice appreciated, I know this is a hard sum to quantify but just looking for a guideline I can stick to, am I am on the money or am I expensive? I'm based in south east. Cheers

 

[Azza41]

Definitely not too expensive. Stick to your guns plenty if work out there.

 

[oz-plumber]

For the works stated, quote them as you would another customer.

I've lost friends over quoting to do works for them.
For some reason, major works for friends need to be done at a much lower rate than you would quote anyone else.

Ask yourself, what can I get in return from them to substantiate a lower price.



Your prices seem reasonable - so stick to your guns.

 

[Ric2013]

Yeah, sounds reasonable. I'd say the 20% is the cost to fix the price for the inevitable unexpected eventuality, as you rightly say.

Depends on the friend. A small job I might do in exhange for a dinner for a good friend if they are hard up. But if they want a new bathroom, then it's not a hardship case (I don't get the perceived need for a brand new bathroom, especially when people are having to use foodbanks, though I did repaint mine recently) and they should be prepared to pay for it.

By giving you the contract they will get a textbook job with you going the extra mile and looking after them afterwards because that's what you should be doing for a friend and they should be providing tea and biscuits as a minimum. You certainly shouldn't be stressing in justfying the cost it as they should trust you implicitely and if they want a shoddy job done cheap then they can go elsewhere. Lose the money, lose the friend, but for heaven's sake don't lose both!

The justification for the price for an established business is, by the way, that that is what, from experience, it costs to keep the business running.

 

[Chuck]

Your quote is your quote, how you arrive at the final figure is your business not theirs. It should be one of three that your 'friend' has got. If your friend doesn't like yours they need to get one of the others to do the work.

My advice is never to undertake paid work for friends, it rarely ends well. One party always seems to feel exploited/coerced by the other.

 

[SimonG]

Your price is your price 250 a day plus 20% is cheaper than me. I'm 300 plus 30%
Friends pay full whack, a friend will know it's your livelihood.

 

[Murdoch]

If people want to supply parts, I increase my day rate

 

[Gasmk1]

Stick with your rate they are reasonable

 

[PETE 123]

I found a long time ago not to do work for friends, people living close to you or relatives at a push maybe very small jobs.

 

[Ric2013]

It's funny. I've done work for friends and it's all been quite satisfactory.