Pricing

[Dirter]

Hello, new to site.

I am wondering what systems people use when pricing jobs! I mean particularly larger jobs such as an install for a three bed house new build first and second fix.
I have previously worked out materials then gage how long it will take then giving me my price. Normally works well but there must be a better formula that people use for it like how they price per point or something. Any advice of price systems would be fantastic.

thank you very much

 

[i=p/u]

Loads of threads about this below, have a read.

If you say adding up materials plus time works well , why not divide by how many points and see what it throws up and play around with answers allowing more for showers etc

 

[i=p/u]

There is no specific answer . You win most but
loose sometimes.

 

[Dirter]

Thanks. It's hard to get it right for bigger jobs but on smaller jobs a mistake can be a small loss but a mistake on a big job can be very costly. Will look into trying your points system then see how it fairs with what I think a day rate should be. Thanks

 

[Spurs]

Hi.
If you are employing people try to make sure that your final price consists of: two thirds labour and materials, and a third profit.
It is also a good idea to add a contingency percentage to cover anything unforeseen.

 

[MDJ]

Hello, new to site.

I am wondering what systems people use when pricing jobs! I mean particularly larger jobs such as an install for a three bed house new build first and second fix.
I have previously worked out materials then gage how long it will take then giving me my price. Normally works well but there must be a better formula that people use for it like how they price per point or something. Any advice of price systems would be fantastic.

thank you very much

To sum it up quickly you need to calculate your bottom line, your actual costs. For example your wages and all outgoing costs and divide it by the number of weeks you intend to work, allow for days you will have no work also. Once you have a figure in mind that is your bottom line. When you price a Job you firstly price it at your bottom line then add a percentage on the materials and IMO 110% onto your bottom line labour charge, this is your profit, and then depending on whether you want the job or not that percentage can fluctuate either way. For a one man band just starting out I would recommend an hourly rate of £25.00 and a 15% mark up on materials, outside London that is, Different inside. Once you have your foot in the door with your customer base and you are pricing Jobs rather than invoicing day works you can charge what you like. Some Jobs you may not want and you may charge £40.00 per hour others may well want and may charge £25.00, what it comes down to is the maximum profit for the minimum outlay. The only hiccup is when you first start due to finding a customer base, keep it simple with an hourly rate in mind and a material mark up to start and then once your running well you can make changes so you do take off. You will find others will try to undercut you also and you will wonder whether it is you making mistakes on costing. Stick to your Bottom line plus your intended profit on whether you want the Job or not and you will start to create Business, how much profit or how far you go will depend on yourBuisiness sense long term.

 

[Eddiesparks]

It's a dark art. I've been doing it a short time (only a year) but i'm starting to get the hang of it. But i make mistakes often. Generally overpricing but somehow i still get the work so thats not too bad eh?!

For eg i priced something ridiculous as i really didnt want the job. Still got it. Bah humbug!!

Another eg the other way round - i priced a rewire for 2 bed maisonette and someone else came in at 1.5k all in!!!

In london i think £65 for socket and £40 per light or switch point is reasonable. That's labour and materials.

Tin hat on!!

 

[telectrix]

no need for tin hat, eddie. your figures look good. does that include the CU, or do you price that on top?

 

[Eddiesparks]

Errr maybe stick £250 for cu and cert. fans and tv/bt points are dearer. For obv reasons. Sockets/lights is the bread and butter so that's why i quoted those numbers.

 

[telectrix]

with you on that. then. pretty good pricing structure.

 

[Dave 85]

Yep £65 per socket is roughly what I go for....On a rewire that is. Usually £60 for switch/pendant down lighter etc. Allows for some pretty decent profit if you work fast (£350 per day ish)

I Know guys who still do £50 per socket but I think that's just too cheap. The materials are gonna be roughly £15 which leaves £35 to pull the floor boards, drill the joists, run the cable, chase the wall, mount the box, fix the conduit, fit the socket, clean up and test the circuit.....No thanks.

Having learned from previous experience if I was just adding the odd extra socket in various rooms around the house I'd be asking for £75 per point.

 

[Eddiesparks]

Dave85, where are u based??

Is £60 for light point not a bit steep ??!!

Interesting as i go £40 which is considerably lower !! Am i charging too little?!?!

Ed

 

[Garythenab]

Personally I'm going at £45 for lighting. If it's 2 way switching then it's £15 on top and £70.

 

[atm84]

Work out how much it will cost you to do the job (materials, labour and overheads) then add your % markup. That's how its done on the big jobs.

 

[Eddiesparks]

Personally I'm going at £45 for lighting. If it's 2 way switching then it's £15 on top and £70.

45 for switch and 45 for downlight? Is that LED?

 

[Voltimax]

Does a light point include the switch at £65?

 

[Voltimax]

Myself, I'm a spreadsheet nut, lol
I have a spreadsheet that has all the points commonly installed in a house and all the materials that make them up plus a labour cost.
The 'kits' sheet is linked to the materials sheet, so I can update my prices there and the kit prices automatically update at the same time. The material list is also filtered so it produces a specific materials list for the job.
I have a 'take off' sheet where I list the rooms and the points and the quantities are automatically linked to the 'kits' sheet.
Takes me only a few mins to price big rewires that way

 

[shanky887614]

Work out how much it will cost you to do the job (materials, labour and overheads) then add your % markup. That's how its done on the big jobs.

For example schneider like at least 30% markup as a minimum

 

[Dave 85]

Dave85, where are u based??

Is £60 for light point not a bit steep ??!!

Interesting as i go £40 which is considerably lower !! Am i charging too little?!?!

Ed

In short...yes. Its too cheap.

 

[Eddiesparks]

I was told my prices work out ok. For example I price per point as i said and when i work out labour per day afterwards it is usually around £250-£275 which I'd say is about right round here.

Dave 85, what kind of light point is that - LED spot?? And what do u charge for socket??

 

[atm84]

Work out how much it will cost you to do the job (materials, labour and overheads) then add your % markup. That's how its done on the big jobs.

For example schneider like at least 30% markup as a minimum

What's it got to do with Schneider? Why should they dictate what mark up a contractor puts on their products. It varies from job to job and contractor to contractor.

 

[Guest569]

In all honesty for domestic stuff I just get a feel for what its worth. I pick a figure that makes the job worthwhile for me. Usually works...maybe its just experience. Im usually pretty open with pricing too, and Ill openly say to the customer to come back to me if they feel the price is not right. This keeps your options open. Iv often had customers come back to me and say that they would prefer to go with us but we were the most expensive. Ill then knock a few quid off and win the job. Result.

 

[MDJ]

In all honesty for domestic stuff I just get a feel for what its worth. I pick a figure that makes the job worthwhile for me. Usually works...maybe its just experience. Im usually pretty open with pricing too, and Ill openly say to the customer to come back to me if they feel the price is not right. This keeps your options open. Iv often had customers come back to me and say that they would prefer to go with us but we were the most expensive. Ill then knock a few quid off and win the job. Result.

Really?

Now that suprises me lol

lmao

 

[Guest569]

Really?

Now that suprises me lol

lmao

Honestly, I don't think customers want guys spending an eternity in their home, and I certainly don't want to spend any more than 15 mins in there especially considering I might not win the job. Ill only go into a lot of detail when I feel I have a good chance of winning, I can usually feel it.

Pricing each point, counting each socket etc etc , must take ages. Then you need to go home and do an estimate which takes 20mins to list each point....then after driving to the job, spending an hour in the house , driving home and spending half an hour on a quote, then what happens ? .....someone else wins the job.

As I said before .....Dartboard.

 

[shanky887614]

What's it got to do with Schneider? Why should they dictate what mark up a contractor puts on their products. It varies from job to job and contractor to contractor.

Schneider electric charge the customer for bms install and just do commisioning while they get another contractor to do the install