How do you maximise the profit on every job ?

[pc1966]

It is quite common to cost the job parts based on the list price (or what you would see in B&Q etc) and then whatever discount you get from the wholesale places is your markup.

Usually though that is not going to amount to much on cable, nor will it allow for partly-used reels, etc, that you end up with and might not be long enough to be usable in the near future on other jobs.

Also don't forget the "misc" stuff that adds up without you realising it, so clips, label tape, screws, glands, grommets, wagos, etc. If you can look back over, say, a year's worth of jobs and a year's worth of out-goings, you should get an idea of the non-obvious expenses that you need somehow to assign to each job's costing.

 

[Dustydazzler]

I think I should be adding material mark up , have avoided doing this for years as felt it was a bit awkward deciding by how much should I mark up.

but talking to my brother in law it makes you realise how much money he makes of stuff he buys from the builders merchants. he did some fencing for my neighbour and doubled the cost of the materials. Doesn’t sound much but he collected £240 worth of stuff from the merchants and billed them £500 materials.
that’s like an extra full days money on every job of this size

 

[pc1966]

Some other put on a standard mark-up of 20% on parts to cover any warranty work, that is a simple one to explain if a customer asks why.

Also when estimating the job time don't forget to put down an extra hour for the paperwork you have to do, like issuing the certificate.

 

[i=p/u]

Price your work and be able to break it down when they ask why is what it is, just a question but have the awnser

 

[Gavin John Hyde]

I pay for all business expenses using my company credit card, then paying it off in full each week or after each job, reason being the 1% cashback quickly adds up! this year I have around £500 that gets added to the balance as a credit. means some jobs the materials cost me nothing.
Used to have an amex but rexel got funny about accpeting it. got 1000s of points with that and was a good bonus.
Another trick is to use the online stores of the suppliers such as rexel,denmans etc as they often have a 10% or 15% off promo most weekends. I tend to order my car chargers then as a charger, hub and harvi is then nearly £100 cheaper! also a good time to order your cable as its then cheaper than the diy sheds
it might seem a lot of messing about but simple things like this probably save me a few thousand each year.
The promo offers are also a good time to order big ticket items as the saving quickly adds up.
Add a margin onto everything within reason.
Look at this way add £5-10 on to every job and that is probably going to be around £1k extra profit per year with no additional work required. Small things multiplied quickly add up

 

[littlespark]

I’m sure we’re all guilty of this, and this might be a very unpopular opinion, but try not to spend all your hard earned profit on new tools that you don’t need.

“I’ve just bought this hydraulic crimper that does up to 400mm! I’ll never use it, I never work with stuff that big... but I might....and it’s sooooooo shiny!”


ps. Before proof reading, I’d just bought a hydraulic crumpet....

 

[i=p/u]

I squashed a guys finger with pair of them, he wasnt happy but his fault...

 

[littlespark]

I squashed a guys finger with pair of them, he wasnt happy but his fault...

The guy had 400mm2 fingers????

 

[i=p/u]

Lol was hospital job anyway. He looked angry. I worked for pitts wilson electrical then if ya ever heard of them. Think based in Preston.

 

[pirate]

As I have very little work on at the moment, I do charity stuff which I get via the Men's Shed. This afternoon I fitted some rack shelving for a neighbour, at cost of materials only. I gave her the receipt for the gear and she gave me the cash, plus £25 as a donation to the Shed. Then she showed me a bottle of Malbec and asked if I drink that, so i said yes, and she gave me the whole case...result!
As I was leaving, her pendant lamp in the hall banged off the front door, and looking up i saw the brown and blue hanging down...now I have a proper job replacing it and 3 others, at proper rates, so all good in the end! A not-for-profit job has produced a for-profit one, and I wasn't doing anything anyway...plus, she is very vocal on social media so I expect some more work from that. OK, hardly the money many of you need to make to make ends meet, but hey...it works for me. Moral: A freebie often results in more work.

 

[HappyHippyDad]

Other than keep increasing your hourly rate how do you make each job more profitable ?

I know other trades put a much bigger mark up on materials , my brother in law who does landscaping puts 100% mark up on core materials to pay for his time driving around collecting stuff

I know Some companies charge an admin fee for certification etc

any other ideas ?

Gosh, that's a big question Dusty!

I think it depends on your priorities. If you mean 'financial' profit, then I think the best way to maximise money profit it to expand and take on employees, just like GMES, Lee sparky etc. If you intend to continue by yourself, then I think you already have a more savy business mind than most based on the majority of your posts, although I'm surprised you don't mark up materials. I mark up at 20%.

I think I would first identify my priorities and then work out a plan.

I wish to enjoy my job firstly and a fairly close second is to make money.

 

[littlespark]

My material mark up can be anything from 10 to 30% depends what it is... and there’s a random number generator for “misc” which covers fixings, consumables etc.

 

[Baddegg]

I’m sure we’re all guilty of this, and this might be a very unpopular opinion, but try not to spend all your hard earned profit on new tools that you don’t need.

“I’ve just bought this hydraulic crimper that does up to 400mm! I’ll never use it, I never work with stuff that big... but I might....and it’s sooooooo shiny!”


ps. Before proof reading, I’d just bought a hydraulic crumpet....

Wash your mouth out @littlespark! New tools are the reason we work! ??

 

[Baddegg]

I put 20% on all materials and offer no explanation to the customer.....take it or leave it that’s my price.......I’m about the pm @pirate and I’ve just sacked my labourer ?
Edit....any customer that wants a breakdown in costs to that extent is gonna be a pain in the arse anyway...I’ve had em in the past and I just say.....

“no probs you source the materials and call me when they are here and I’ll fit”

Customer “ok what do I need?”.......

Me......”that’s your problem now....oh and there is no warranty on parts you supply...see you soon ?”

 

[Steven68]

You can use pricing strategies to boost profits.