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!!!

 

[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!

 

[Brightspark2]

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

I know!!...

Good subbing rates them...if it's subbing, as in working for another electrical contractor we are talking about...

 

[telectrix]

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

i'll change the oil next month. not even topped it up in 18 months.

 

[harrison2987]

How much gross pay are you trying to earn minimum?

To cover all my overheads and a wage for myself?

 

[Octopus]

To cover all my overheads and a wage for myself?

Thats gross "profit", gross pay is before tax and NI!

 

[shanky887614]

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

i got 4 new uniroyal rain experts,full service with sparkplugs etc, full mot all for £368 inc vat

 

[telectrix]

for your first 2 years, work out what you need to pay the bills - mortgage, food, etc. forget the foreign holidays and the moet. add 25% for contingencies, then approx £5000 for business overheads. say for arguments sake, that comes to £20,000. divide by 40 weeks, so you need to pull in £500 per week + materials.

 

[UNG]

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

£30 that's expensive I only pay £27.50 for an MOT and it's legit

 

[telectrix]

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

bloody 'ell. that's only £100 less than i bought my van for.

 

[dingledong]

Your ain't gonna get much work London way

 

[oldAL]

you cant expect to pay yourself a 'normal' wage like you would get as an employee in your first year of trading,
making any sort of a wage is a bonus,
simply aim to break even.