Labour / matrials

[JustStartingOut]

Hello All

I am putting a business plan together and would appreciate any helpPray. So please excuse the naive questions. BlushingBlushing

Could anyone can give me an indication of roughly how much of the average bill to a customer is labour and how much is cost of materials/parts.

I know this will vary considerably between jobs... (eg installing 5 storage heaters would be signifcant amount on the parts supplied and less on labour), but on average would it be something like a

 

[Apache]

Have you seen KME's excellent business pages?

Electrician Forum

Think the labour: materials will vary a lot depending, as you say on the job.

The business thread gives details of calculating your hourly rate, remember to include time doing admin! You could add in a factor assuming you were working 75% of the time and increase your hourly rate accordingly, but be careful not to price yourself out of the ever competitive market ATM.

As a new business you are not only competing against existing, established sparks in your area, there are people laid off building sites trying to get into some domestic work.

IMO you need some kind of edge, something different to make your business stand out - a Unique Selling Point as they say in business jargon (knew I'd learn something of Dragon's Den!)

Oh and welcome

 

[JustStartingOut]

Thanks Apache

 

[NozSpark]

Welcome to the forum..

Im my first year of trading (sole trader) my accountant worked out a percentage of profit against turnover.. it was 72% Bear in mind that that is GROSS profit (what I get in my pocket before paying Income TAX)

You will find that some jobs bring you a high profit margin (eg. replacing a socket