pricing jobs

[davek]

Hi all
Please don't slate me as this is quite new to me. After may years working in a variety of job I took myself of to collage to study electrical installation started with my 2330 then did my 17th, domestic installer and fundamental inspection and testing 2392.
I and hope to go self employed starting with small jobs one I have registered with a scheme provider, but I am vague as to rate to charge. I know we all charge depending on the job but some guide lines would be helpful.
Regards
Dave

 

[dan86]

haven't got a clue what the going rate is down in Preston mate. and by small jobs I'm guessing you mean domestic?

 

[Octopus]

Well...... you need to determine the costs per year of all the costs to run your business and this will come to between £5K to £6K. From this you can see that you need to make about £120 per week, every week to just cover your costs.

Then you need to think about your target earnings - before tax and NI.

Then you realise that you can't work 52 weeks per year, nor 37 - 40 hours per week, so use 44 weeks per year and 30 hours per week, and this won't be from day 1.

Tough I know BUT only you can do the sums.....

So in summary, in year 1 you need to cover your costs and make a profit...of say £6K..... so your need about £270 per week of "services" - and if you charge £20 per hour that's about 14 hours or about 2 days per week.....but its not that simple.

You could be spending days or even weeks sitting around waiting for the phone to ring..

Apologies if this isn't positive reading but its reality.

 

[ChrisElectrical88]

44 weeks is been generous for first year of business if your not to experienced either. All the best to you anyway!

 

[davek]

Hi Dan Murdoch
I will only be doing domestic work for now Dan. I have been on a few self enterprise course, and have done the profits and losses etc. but in the really world, I feel it more of a cost to do the job, rather than an hourly rate. Such things as an extra socket, outside light or a consumer unit change.
Regards
Dave

 

[Octopus]

Hi Dan Murdoch
I will only be doing domestic work for now Dan. I have been on a few self enterprise course, and have done the profits and losses etc. but in the really world, I feel it more of a cost to do the job, rather than an hourly rate. Such things as an extra socket, outside light or a consumer unit change.
Regards
Dave

Only you know how quick you are so time will tell. A cu change would be a day minimum IMHO

 

[ChrisElectrical88]

All those jobs will be different in different situations. One might take 3 hours and use 15m of cable. One might take a hour and use 2 metres. Go off the time it will take and use that to price a hourly rate + materials @ 10-20% mark up.