hourly rate and mark up on materials

[Dave 85]

you mark up materials by 15-20% to cover time taken replacing anything that goes faulty. should not affect your labour rate.

Erm....the mark up on materials is to cover costs then? There was me thinking you run a business in order to turn a profit....

 

[Dave 85]

The best tip I can give is to be careful with your pricing,a customer is always happier if at the end of a job you can turn around and say "well it's actually going to be a bit cheaper than I said" rather than "it's going to cost a bit more".

Why would you give a quote and then charge less having completed said work. Limiting yourself to a specific max profit per day just to satisfy your conscience shows appalling business sense.

 

[happydundee]

I charge between 20% and 40% on materials, depending on how much work I put into sourcing them, and if it's supply only or supply and install.

 

[Quantum dan]

pretty much similar to myself, i try to avoid working on a stated day rate, but price it as 250 per day +vat, also 20% mark up on book price for materials

£45 +vat 1st hour call out, £35 thereafter for smaller jobs

i also buy most essentials in bulk such as t&e, back boxes, cable clips, jb's, sockets etc and would put around 50-100% mark up on these items

I Try to keep the majority of my domestic clients as middle class as i can, they are usually the best payers and want a higher quality job

second this

however I charge £55 first hour and £45 for subsequent hours. Plus parking and materials. That's in greater london.

 

[atm84]

When do you class it as a call out? If someone calls up and asks for a few sockets, is that a call out?

 

[Octopus]

When do you class it as a call out? If someone calls up and asks for a few sockets, is that a call out?

My first hour rate is well above the subsequent hourly rate. Whether its a callout or not, and Weekends/out of hours its higher - that said I can't remember the last time I was needed out of hours!

 

[atm84]

Out if hours- is every hour at a premium or just the 1st hour?

 

[dingledong]

You have to be careful of this mark up on materials now .I Would say at least once amonth or more people ask how much was that socket what make was it
Oh you said it was £7 on the internet I can get them for £4
You have potentially lost a customer because they think your ripping them of, it doesn't matter you charge them £55 a day all they see is you ripping them off

 

[Octopus]

Out if hours- is every hour at a premium or just the 1st hour?

Every hour. Would you get out of bed at midnight work for the 1st hour for more then revert to your "daytime" rate - I wouldn't.

But, I say again, call outs for me are so, so, so rare.

 

[atm84]

Yes true but I bet that they don't consider the cost of postage when they buy on line.

 

[dingledong]

As I said these thoughts do not enter their heads you want £7 I can get them for£ 4 therefore all the stories I read about overcharging cheating electricians is true ! Do not even take your cheap daily rate into it just
You tried to have me over

 

[Octopus]

As I said these thoughts do not enter their heads you want £7 I can get them for£ 4 therefore all the stories I read about overcharging cheating electricians is true ! Do not even take your cheap daily rate into it just
You tried to have me over

Never, and repeat never mark up commodity products, like sockets more than 10 - 15%

Any mug can by cheap crxp off the internet!

 

[dingledong]

I actually don't mark up materials so not caught ought but you have to explain what they are buying is carp and all my work is recommendation so they trust me but some customers are money savers

 

[shanky887614]

As I said these thoughts do not enter their heads you want £7 I can get them for£ 4 therefore all the stories I read about overcharging cheating electricians is true ! Do not even take your cheap daily rate into it just
You tried to have me over

i just say to them, if you can get them cheaper then ill fit them but it wont be my problem if they fail.