Pricing

[SPECIAL LOCATION]

eh up!! This is something i struggle with, i eventually want to be self employed !!! so its something i have to get better at.

I am just curious, is it as simple as materials + labor ?

do you add on a % onto the materials???

do you add a bit more on for any "problems" ?

i have tried to talk to my boss about pricing up, even about letting me do some... but it went down like the FTSE sock market!

Cheers

Hello Danny.. put your reading glasses on m8!!B-)

{spec locs back off on another chapter of war & piece!!! :^O }

Along with the the good points Pyro Dan & co have posted...

Just to add my thoughts for you relating how you suss out your material costs & labour rates....

1/ Materials..

Assuming you can work out what actual materials you need for a specific job,

you then need to get prices & decide how much to charge for those materials..

I often consider it this way...

quite a few customers may visit a local B&Q or Wickes or similar and see the cost of some electrical fittings and ignoring quality or brand makes at this stage

 

[cheggers]

special I charge materials + 33% if customer say anything I remind them that b&q don't deliver and if the item went wrong would they come out and replace and change them free of charge no I don't think so.

 

[Apache]

special I charge materials + 33% if customer say anything I remind them that b&q don't deliver and if the item went wrong would they come out and replace and change them free of charge no I don't think so.

As a customer I will research the approxamate cost of materials. If someone was very high on materials it may put me off. I think a higher labour charge and less on materials would be better. I can get the same thing delivered often FOC!

Just my POV

 

[cheggers]

I get the cheapest price I can get then put on my 33% hopefully it wont be to much more than the customer can get them for. you have got to make on the materials because you have to guarantee them for at least 12 months

 

[Apache]

I get the cheapest price I can get then put on my 33% hopefully it wont be to much more than the customer can get them for. you have got to make on the materials because you have to guarantee them for at least 12 months

It's irrelavant whether you charge 120 for a CU and 200 to fit or 100 for CU and 220 to fit. Same money made in your pocket. I don't know what you're worth (labour wise) but I do know how much a certian CU may cost. Infact too cheap an hourly rate might put me off. I'd always ask for quote/estimate split into labour and mats so I can check these things.

Just my POV

 

[SPECIAL LOCATION]

As a customer I will research the approxamate cost of materials. If someone was very high on materials it may put me off. I think a higher labour charge and less on materials would be better. I can get the same thing delivered often FOC!Just my POV

sometimes a bit of psychology can come into your pricing...

quote some of your materials at nice lower looking figures..

but wang up your labour costs to cover it!

so you don't loose out & customer thinks they are getting some good deal on the lights & sockets..

I find this works best especially if talking about metal (brass/chrome etc) fittings!

i.e. they see the B&Q polished chrome prices...

which you can still beat comfortably and they are well chuffed!

Again it all depends on your preferred market place..

some of the better customer wont use you if you appear too cheap!

its one of them catch 22 situations...

The problem is there are a lot of relative price comparison you have to take into account with your labour...

e.g. Just cable bashin new builds for a builder....

is a different situation to ..

negotiate, design, install & test some circuit or fittings for a specific customer..

be it domestic or commercial to meet their acceptable criteria.

Responsibilities for more aspects of work, testing & certification require additions cost, for your expertise that the customer is using.

I always take into consideration that around 11 or 12 years ago the company I worked for paid me around

 

[SPECIAL LOCATION]

I get the cheapest price I can get then put on my 33% hopefully it wont be to much more than the customer can get them for. you have got to make on the materials because you have to guarantee them for at least 12 months

No you don't!

If they fail in 12 months..

the manufacture or your supplier has that responsibility to you!

so you just pass the responsibility back up the chain!

All products YOU purchase must be fit for purpose..

and providing you install them following the manufacture instructions...

and can clearly identify an unreasonable failure within 12 months..

you can just claim all that back off your supplier..

AND your additional labour charges for refitting something within an unexpectedly short lifespan....

It doesn't happen very often but I have done this on a few occasions now..

Got either a replacement item or the cost of an equivalent if the original is an obsolete product PLUS labour cost!

You just need to write to the correct person..

usually the general manager or chief executive at the head office is best!

if there has been physical failure say burning.. a couple of photos can help!

 

[SPECIAL LOCATION]

It's irrelavant whether you charge 120 for a CU and 200 to fit or 100 for CU and 220 to fit. Same money made in your pocket. I don't know what you're worth (labour wise) but I do know how much a certian CU may cost. Infact too cheap an hourly rate might put me off. I'd always ask for quote/estimate split into labour and mats so I can check these things.Just my POV

I would concur with that Apache...

U wrote it quick..

while I wrote it long... as per norm!! :^O :^O

and I would expect any decent tradespersons to be able to provide an itemised quote!

 

[kme]

special I charge materials + 33% if customer say anything I remind them that b&q don't deliver and if the item went wrong would they come out and replace and change them free of charge no I don't think so.

I tend to agree with you, as far as changing faulty items are concerned, however, if you suggest that to the customer as the reason for a high materials bill, they`re likely to think you`re supplying cheap carp that goes faulty!

It's irrelavant whether you charge 120 for a CU and 200 to fit or 100 for CU and 220 to fit. Same money made in your pocket. I don't know what you're worth (labour wise) but I do know how much a certian CU may cost. Infact too cheap an hourly rate might put me off. I'd always ask for quote/estimate split into labour and mats so I can check these things.Just my POV

It may be irrelevant to some customers, but, as you say, the breakdown is, in many cases, of more importance than the bottom line.

Most of my materials are purchased through one national supplier, who have an online website/catalogue. As I`ve been shopping there for aeons, I get a discount. Me - not my customer.......

My materials cost is worked from the wholesaler`s catalogue - strictly.

I know that isn`t the amount I`ll pay; but then again, I don`t know how much I`m going to pay until I get it.....

Cable is charged as a "per metre" item. The fact that I get it cheaper by buying a roll is irrelevant to my customers.

This, incidentally, only applies to standard domestic customers. Contractors either supply materials themselves, or I supply "at cost".

Maybe I`m too soft. I don`t know the answer. But my customers, by and large, are happy with the overall package they recieve from us.

KME