Hourly rate after calculating overheads. Opinions please!!!

[harrison2987]

Hi guys,

After sitting down and working out all my fixed and variable overheads I have worked out charging a maximum hourly rate of £28-30 per hour working 220 days of the year.

If I only worked 150 days of the year, as this is my first year trading, I will need to charge £33 per hour.

I have also worked out a day rate of £250 a day.

Do you lot think these figures are reasonable and competitive, or do I need to look at my outgoings and try to decrease them?

I am based in Manchester and cover the north west, approved electrician.

Any opinions and comparisons welcome!!!

 

[telectrix]

about right there.a bit on the high side for the north west. £25/hour or £200 /day is more realistic.

 

[Octopus]

Hi guys,

After sitting down and working out all my fixed and variable overheads I have worked out charging a maximum hourly rate of £28-30 per hour working 220 days of the year.

If I only worked 150 days of the year, as this is my first year trading, I will need to charge £33 per hour.

I have also worked out a day rate of £250 a day.

Do you lot think these figures are reasonable and competitive, or do I need to look at my outgoings and try to decrease them?

I am based in Manchester and cover the north west, approved electrician.

Any opinions and comparisons welcome!!!

In your first year of trading your aim should be to make a small profit!

If you increase your hourly rate, I suspect you will end up working fewer hours as you'll price yourself out of work.

 

[Richard Burns]

As Teletrix and Murdoch, about right, but you are also governed by market forces that limit your earning capability.

 

[Octopus]

The reality is that being SE will cost about £6K per year.......

 

[wiganspark]

bit on the high side with the £33 per hour mark around the north west if im honest, subbies that work for us vary from £22.50 to £27 per hour

 

[telectrix]

bit on the high side with the £33 per hour mark around the north west if im honest, subbies that work for us vary from £22.50 to £27 per hour

gizza job. round here it hard to push for more than £15/hour, subbing.

 

[wiganspark]

gizza job. round here it hard to push for more than £15/hour, subbing.

most of ours get a schedule of rates for all the work they do but some jobs are done on hourly rate and thats the going rate

 

[harrison2987]

I have worked this out assuming I will only work 30 weeks (150 days, 1200hours)out of the year, am I right in doing this? I would hope to work 44 weeks (220 days, 1760hours) out of the year to be honest so should being sensible which figure is best to use?

Also so I have only allowed for 8 hours work a day, mon-fri. Reason being anything over is a bonus.

I've been using the following methed:

Annual overheads / hours per year + 20% for profit.


I just want to make sure I'm right I my calculations and figures used?

 

[Octopus]

I have worked this out assuming I will only work 30 weeks (150 days, 1200hours)out of the year, am I right in doing this? I would hope to work 44 weeks (220 days, 1760hours) out of the year to be honest so should being sensible which figure is best to use?

Also so I have only allowed for 8 hours work a day, mon-fri. Reason being anything over is a bonus.

I've been using the following methed:

Annual overheads / hours per year + 20% for profit.


I just want to make sure I'm right I my calculations and figures used?

How much gross pay are you trying to earn minimum?

 

[Morgan keith]

(null)

It's a bit 'unfair' to charge customers £33 rather than £28 because it's your first year trading so may only work 150 days a year. Kinda like penalising customers because you aren't working everyday.

 

[Octopus]

It's a bit 'unfair' to charge customers £33 rather than £28 because it's your first year trading so may only work 150 days a year. Kinda like penalising customers because you aren't working everyday.

I think if he trys that his number of hours will drop off.

Setting up alone is a precarious step and your first years aim is to make a profit, yes it may only be "beer" money but thats the harsh reality.

 

[telectrix]

as a sole trader starting out, your overheads may well be less than murdoch's £6000. mine are nearer the £4000 mark, but then my van's 12 years old and i'm a tight git.

 

[Octopus]

as a sole trader starting out, your overheads may well be less than murdoch's £6000. mine are nearer the £4000 mark, but then my van's 12 years old and i'm a tight git.

Mines based on years of trading - so how about we halve the difference, and say £5200 so £100 per week, £20 per day!

 

[telectrix]

haha. so's mine. then again, i spend as little as i can. my van fuel bills are only £40/week average as i tend to stay local and, touch wood, i've only spent £100 in maintenance in the last 2 years.

 

[Octopus]

haha. so's mine. then again, i spend as little as i can. my van fuel bills are only £40/week average as i tend to stay local and, touch wood, i've only spent £100 in maintenance in the last 2 years.

I've had 4 tyres, tax, mot, refill of aircon recently - about £700!

 

[telectrix]

2 tyres from the scrappy. £40 fitted. MOT £30, small weld for MOT £40. oops, that's £110. bugger. only 5 pints tonight then.

 

[brucelee]

bit on the high side with the £33 per hour mark around the north west if im honest, subbies that work for us vary from £22.50 to £27 per hour

I wish you must live in the rich side of Wigan lol

 

[rapparee]

2 tyres from the scrappy. £40 fitted. MOT £30, small weld for MOT £40. oops, that's £110. bugger. only 5 pints tonight then.

Would you not service the van once a year, it'll save money in long run

 

[Octopus]

Would you not service the van once a year, it'll save money in long run

I want to know how he can get a legit MOT for £30!