Help pricing

[Gringoking88]

Hi all,

I'm just starting out alone and want to do domestic only jobs, im initially going to focus on the smaller jobs as I also work full time elsewhere (the hope is I can eventually leave the "elsewhere") but still build up my profile and gain experience / confidence during my days off and holidays. Im finding it difficult if not impossible to know what to charge, do you guys / girls have a set price list you use or do you just calculate it based on an hourly rate, if hourly rate what is this averagely?

Im based in South West London and would really appreciate any help / advice you can offer.

Many thanks,

Martin

 

[gutterball]

work out how much it costs to run the business. Van, tools, insurances, scam membership, tax etc. work out how much you need to live off. add the 2 together and divide by 12. That's how much you need to earn each month.

 

[Octopus]

Your overheads per year will be about £6k plus buying a vehicle.

When you say you will be working else where is this as a spark? If not have got the relevant insurances in place?

 

[hightower]

Not sure that's helpful to the OP gutterball - he's just starting out and in a part-time scenario, he probably won't know how much tools, tax, memberships, books and so on are gonna cost? Ok, you might be able to predict to some degree (everyone needs BS7671, but does he need some of the guidance notes? Does he need an on-site guide? He might say no today and find tomorrow he needs them), but when everyone else was starting out how many times did they realise they didn't have the tools for a certain job and had to go invest in them? My uncle's been going 6 years and still finds (quite rarely I must add) the odd thing he doesn't have and has to go get it.

@OP: I would probably say to charge what you feel comfortable charging. If you are in a position (ie you said you work full-time elsewhere) maybe charge a little less than the going rate to try and build up your customer base. That way you'll get word of mouth customers too. I think you need the customer base first - 10 customers at a cheaper rate is better than 5 at the normal rate I reckon, at least in the early days. However, don't undercut too much as you will have running costs, and spending 2 hours at a job and coming away with a fiver after you've paid diesel, tax, and other things isn't really worthwhile.

I'm hoping to go through this myself in a year or two so will be interested to see what others say also. I currently do a little weekend work with my uncle, and try and use my pay from that to invest in tools that I will need in the future.

 

[Spoon]

OP: There are lots of threads on this, if you do a search on the forum. Some guys charge by the hour and some my the amount if items fitted.

 

[Gringoking88]

work out how much it costs to run the business. Van, tools, insurances, scam membership, tax etc. work out how much you need to live off. add the 2 together and divide by 12. That's how much you need to earn each month.

Hi Gutterball,

Thanks for this, I get the "P&L" bit of the business but if i price too high because the formula says i have to make x / pcm i wont get jobs and if i do too low there will be no point.

Im just looking for I guess a menu of jobs lol.

Thanks though

 

[Gringoking88]

Your overheads per year will be about £6k plus buying a vehicle.

When you say you will be working else where is this as a spark? If not have got the relevant insurances in place?

Hi Murdoch,

No my full time job is nothing to do with being a spark, im actually a deputy manager for a large supermarket chain, but wan to diversify and work for myself when i want etc, and not till 2230 finishes and 0700 starts. I am already NICEIC registered so yes I have all the necessary insurance etc.

Thanks for the reply.

 

[Gringoking88]

Not sure that's helpful to the OP gutterball - he's just starting out and in a part-time scenario, he probably won't know how much tools, tax, memberships, books and so on are gonna cost? Ok, you might be able to predict to some degree (everyone needs BS7671, but does he need some of the guidance notes? Does he need an on-site guide? He might say no today and find tomorrow he needs them), but when everyone else was starting out how many times did they realise they didn't have the tools for a certain job and had to go invest in them? My uncle's been going 6 years and still finds (quite rarely I must add) the odd thing he doesn't have and has to go get it.

@OP: I would probably say to charge what you feel comfortable charging. If you are in a position (ie you said you work full-time elsewhere) maybe charge a little less than the going rate to try and build up your customer base. That way you'll get word of mouth customers too. I think you need the customer base first - 10 customers at a cheaper rate is better than 5 at the normal rate I reckon, at least in the early days. However, don't undercut too much as you will have running costs, and spending 2 hours at a job and coming away with a fiver after you've paid diesel, tax, and other things isn't really worthwhile.

I'm hoping to go through this myself in a year or two so will be interested to see what others say also. I currently do a little weekend work with my uncle, and try and use my pay from that to invest in tools that I will need in the future.

Hi Hightower,

Thanks for the reply.

I have done my domestic installers course, 17th edition, and building regs exam so have the books already as well as GN3, in terms of tools etc I have a basic set and also a fluke 1653b and am already registered with NICEIC.

I agree completely about charging a bit less to get the customer base but am struggling with "what less is" im also conscious I will probably be a bit slower than more experienced sparks so dont think it fair to price per hour.

Out of curiosity where are you based hightower?

Thanks,

Martin

 

[hightower]

Durham, NE England, so the rates I could tell you probably won't add up

 

[Spoon]

Durham, NE England, so the rates I could tell you probably won't add up

Every time someone mentions Durham I keep thinking of Roger Whittaker and Old Durham Town.... I blame my dad..

 

[hightower]

Every time someone mentions Durham I keep thinking of Roger Whittaker and Old Durham Town.... I blame my dad..

I'm 31 mate - I have no idea what you've just said

 

[telectrix]

@ OP/ take a look at the which guide for various electrical jobs.

Electricians: how much should you pay? - Which? Local

 

[Octopus]

I always wonder about how people actually organise themselves when they have 1 full time job and want to do a job like sparking part time? A Sunday job goes off the rail and you have to work Monday - Friday - do you leave the client in the lurch for 5 days?

I also wonder about how many people actually want work done at the weekends only too? Most of my customers don't!

 

[hightower]

I also wonder about how many people actually want work done at the weekends only too? Most of my customers don't!

Deleted as duplicate below. Sorry.

 

[hightower]

I also wonder about how many people actually want work done at the weekends only too? Most of my customers don't!

Dunno, if I had the option I'd take a weekend service every time as working Mon-Fri means I wouldn't have to take time off to get a job done. And as for something going wrong, I'd be in a position to take holidays or unpaid time off in order to get it done, much like how a full-time spark would rearrange his diary if needed.