What sort of prices should I be charging?

[Kjb Electrical]

Hi all, I was wondering how much hourly rate I should be charging? I recently quoted a job only to be questioned if I was an electrician due to being too cheap.
I’m thinking of upping my rates but want to keep at an honest and fair price.

 

[Andy78]

What is your current hourly rate ?

 

[Kjb Electrical]

£20

 

[Octopus]

£20

Way too low .... unless you are doing that 8 hours per day, 5 days a week for the same client

 

[Kjb Electrical]

What would you recommend charging?

 

[Andy78]

£20

Yeah you're too cheap. Are you even a proper electrician ? lol

Seriously though, everyone's hourly rate will be different and you need to work out yours by working out your overheads per annum, the amount of realistic working days/hours per annum, and the amount you wish to earn per day/hour.

The overheads incurred by a man in a van for instance will not be comparable to that of a small to medium sized firm with offices and non revenue producing staff.

You also need to take into account local rates and local cost of living.

I reckon you could stick a good chunk on that and not lose much business at all.

 

[Octopus]

What would you recommend charging?

What sort of work are you doing?

 

[JAWS]

£20

My mate charge that for cutting lawns

 

[Octopus]

How much do you think your annual overheads are?

 

[Kjb Electrical]

Cheers! I’m doing mostly domestic work at the moment and I’ve just started to receive work from a local housing association. At the moment my overheads are roughly 5K..

 

[Octopus]

Cheers! I’m doing mostly domestic work at the moment and I’ve just started to receive work from a local housing association. At the moment my overheads are roughly 5K..

So let’s say it’s £6k excluding replacing a vehicle

At best you will probably work 40 weeks per year ....

So 40 x 40 x 2o minus 6000 = 26k

Way too low to make self employment a sensible employment course ...

 

[Deleted account]

Hi kjb,
Wow! Honestly I'm gobsmacked at £20 per hour. Really pleased your asking on hear what you should be charging.

Obviously it's up to you, but I don't know how you will make profit.

My charges are

Out of hours call out £65 per hour
Emergency day time call out £65 per hour
Normal hourly rate £45 per hour
Day rate. £225

Hope that helps
Peter

P.S. I am putting my rates up next month as I know other spark in the area are charging much more and I know I am much better than them.

 

[chris gray]

I honestly charge £35ph for cash only jobs

 

[rolyberkin]

It depends how much work you are getting, how busy you want to be and what your overheads are, my kids charge me £10 for cleaning my car! Anything less than £30 an hour is too cheap unless its mates rates.

 

[Rpa07]

That's it - next new client my prices go up! No wonder people jump at my experience - and I thought they were after my wit and repartee!

 

[Octopus]

That's it - next new client my prices go up! No wonder people jump at my experience - and I thought they were after my wit and repartee!

Why next new client .... from the 1st October for all surely

 

[davesparks]

£20

So once you’ve deducted your overheads, tax, national insurance etc what does that leave you with?
Maybe £13/£14 per hour? Might as well be working on the cards somewhere for that.

 

[Octopus]

That's it - next new client my prices go up! No wonder people jump at my experience - and I thought they were after my wit and repartee!

Why next new client .... Form the 1st October for all surely

 

[Rpa07]

Why next new client .... from the 1st October for all surely

Only because a new client will not know my extremely affordable positive change in their lives, they will get the positive change in their lives with an invoice that keeps me in a new upscaled style of living.
New work for old customers will be amended to the 'new me' but the projects I have going will remain 'good value'.
Glad my mortgage is low!

 

[Nigel]

Controlling your overheads is key.

I charge out at £650 per day for a sparks + mate.

Minimim of a day for most jobs.

Some reactive maintenence jobs I charge at between £60 - £100 per hour depending on things like how quick they want an attendance.

£20 sounds a little low to me.