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Hi.
Apologies if this has been covered previously, but I’m so out of touch using forums and still don’t have much of an idea how to work this site.
I really should get on here more regularly.

I’m basically looking for advice on pricing structures/methods for domestic installations - First & second fix.

I am currently employed but getting so many people ask about doing work and have a list as long as my arm, so I’ve figured it’s the right time to start toying with the idea of setting up alone.
My biggest issue is that I have absolutely no pricing structure whatsoever and I really don’t know where to start.

I've heard about various pricing methods:
  • Per point
  • Materials + …%
  • Hourly/Daily rates, etc
But have absolutely zero idea on what is actually a fair price for myself and the customer.

I know a lot of people say there is no ‘right or wrong price’ but I don’t want to carry out work and undercut myself. At the same time, I don’t want to deter the customer.

Could anyone please point me in the right direction as to what and how would be a fair way to price as a fresh, unestablished electrician?

Any advice would be very much appreciated.
 
Mine Field

Your have guys like Artisans Electricians based in North Cambridge area (I believe) who advertise at £80 per hour plus vat and are always busy

Yet in the same area probably got other sparks charging as little as £60 per hour who struggle to find enough work


if I were starting out from scratch in my local area of Surrey , I would set my rate right off the bat at £400 per day or £50 per hour , knowing full well at this price I don’t need to haggle and can price in confidence that I am very competitive
 
Hi. It can be very daunting when first considering starting up on your own.

Many on here have already given advice on how they go about pricing, but there are 2 basic ideas, as you've already noted.

1. A price per point method
2. Labour and materials plus markup

The starting point is working out what you need as a wage. Then work out all your proposed overheads, ie tools, vehicle, vehicle running costs, insurances, scheme membership, uniform, phones, etc.

Then add a percentage for investing in your business, for future growth.

This will give you an hourly rate.

Then, when working up a quote, add up all the materials, add 20% markup. Then work out how long it will take to do the job in hours, multiply this by your hourly rate and that's the total. For slightly bigger jobs, add on another 10% for contingencies.

To work out price per point just add up every point, including lights, switches, sockets, etc and divide that into your total. Add extra for bigger items at the end.

Artisan Electrics did an interesting and open video on YouTube on how to calculate pricing.
Definitely worth a watch.
 
£1000 per room was a very old method I know a lot of sparks used for rewires , I used to do the first 10 points for £1000 then additional points at £50 per point but that’s when I was doing 2 or 3 a month

last rewire I just did (first in over 2 years) worked out about £150 per point fully chased in and made good

(I should have charged more but it was for a family friend)
 
Well it's a good method for off the top of your head price. You can fine tune it if the client wants to go ahead. It does give them an idea of what sort of price range it is going to be and winnows out the window shoppers so to speak.
 
Mine Field

Your have guys like Artisans Electricians based in North Cambridge area (I believe) who advertise at £80 per hour plus vat and are always busy

Yet in the same area probably got other sparks charging as little as £60 per hour who struggle to find enough work


if I were starting out from scratch in my local area of Surrey , I would set my rate right off the bat at £400 per day or £50 per hour , knowing full well at this price I don’t need to haggle and can price in confidence that I am very competitive
I am moving to Cambridge or Surrey!
 
If you are estimating how long it will take, so you can work out a labour cost based on what you want to earn per hour.
do not underestimate how long it will actually take.
until you have a few months experience under your belt, I would recommend that you add 50% to the expected labour time.
It is incredible just how much added time there is to a simple job, If you think you can add a socket to a ring in 1 hour, think hmmm, could take 2 hours.

Edit,
every now and then you will get lucky and it will take 40 min but trust me these jobs are RARE!!
 
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I disagree @James because I have always worked on the idea of what would a good spark charge or how much time should it take. That way the customer is getting a fair price. I really don't think a customer should be paying for inexperience. Hence I work it that way so that if I do take longer because I am slow then it is me bearing the brunt and getting less money per hour which I think is fair dos. Maybe I am mis-reading what you you are saying though, if so I take it back ?
 
I disagree @James because I have always worked on the idea of what would a good spark charge or how much time should it take. That way the customer is getting a fair price. I really don't think a customer should be paying for inexperience. Hence I work it that way so that if I do take longer because I am slow then it is me bearing the brunt and getting less money per hour which I think is fair dos. Maybe I am mis-reading what you you are saying though, if so I take it back ?
I took it as James means things can go wrong and jobs can run on. God knows things haven't always gone to plan for me and something I thought was simple turned into a nightmare.
 
You could always ring around a few sparks on the pretence of needing a new socket or light etc and find out their hour/day rate to give you some idea where to pitch yourself but this forum does that to a degree but prices vary considerably geographically.
 
@Vortigern
I wasn’t suggesting that because you are inexperienced you should load your quotes by 50% to cover up your shortcomings.
it was more a piece of advice that before you have had a good deal of site experience of running, working and completing a job, you may well underestimate how long it will take.
 

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