How to price?

[ppelec100]

So time and again I will get the odd private job to do, and in the future I will want to start my own company.
I always find myself getting stuck when it comes to giving a price. So I have a few questions regarding this topic:

Q1. What is the average rate per hour in London and surrounding areas? I want to be within the range and be competitive, but don't want to be too low busting my balls for nothing or too high and scare customers off

Q2. Generally, are call out prices higher OR the same as ordinary work (install/maintenance) prices? For instance: if it took you to 1 hour to find a fault, and 1 hour to change a light fitting... would you charge the same price for the fault and the same price for the light change? Or is one normally priced higher?

Q3. When you price a small job, how do you price it? If its a small job where they only want 2 lights changed and you don't want to waste time going to view it (especially if they decline you) .. obviously you work out how long it will take per light fitting X the rate you want. But what happens when you get there take the old fitting off and realise there is no continuous cpc and its a metal light and will take extra time to rectify which you couldn't guess when pricing it. How do you overcome problems like this without shooting yourself in the foot or causing awkwardness between you and the client?

Q4. Would you charge a day rate for being at 1 site location rather than hours x rate? e.g £60 x 9hrs = £540. Would you charge for a day rate of like £350 for the day or something? As its more job security for the day and you aren't spending time running around.

Q5. When it comes to rewires, how do you charge for that? As its a larger job.. price per point? All general points (hobs/showers/lights/sockets) the same price?

Any other info will be great as I often find

 

[Dustydazzler]

First piece of advice , ‘there is no such thing as a small / easy job’ , some Of the smallest jobs can be the biggest pains in the arse jobs that eat up time

London and the area of Surrey I live , around £90
per hour that is more call out work , jobbing calls from house to house

£400 per day if you want to be more competitive when pricing a bigger project or rewire for example

I try to avoid quoting blind but if pushed I will ask for photos of the work and photos of the fuse board etc

 

[ppelec100]

First piece of advice , ‘there is no such thing as a small / easy job’ , some Of the smallest jobs can be the biggest pains in the arse jobs that eat up time

London and the area of Surrey I live , around £90
per hour that is more call out work , jobbing calls from house to house

£400 per day if you want to be more competitive when pricing a bigger project or rewire for example

I try to avoid quoting blind but if pushed I will ask for photos of the work and photos of the fuse board etc

You charge per day for rewires? not per point?

Yeah I guess pictures help, but then you never know still what is behind a fitting.

Do you have any measures in place to stop clients bilking you? like agreed contracts etc

 

[Dustydazzler]

It’s a big curve and everyone does things differently

rewires can be done per point , per room or day rate

I prefer day rate as this option covers for over run , extras etc

contracts , stage payments , money up front for materials etc

 

[loz2754]

I have a website with a full list of terms and conditions that I make it clear to the customer they are agreeing to when they accept my quote.

 

[davidanthony41]

So time and again I will get the odd private job to do, and in the future I will want to start my own company.
I always find myself getting stuck when it comes to giving a price. So I have a few questions regarding this topic:

Q1. What is the average rate per hour in London and surrounding areas? I want to be within the range and be competitive, but don't want to be too low busting my balls for nothing or too high and scare customers off

Q2. Generally, are call out prices higher OR the same as ordinary work (install/maintenance) prices? For instance: if it took you to 1 hour to find a fault, and 1 hour to change a light fitting... would you charge the same price for the fault and the same price for the light change? Or is one normally priced higher?

Q3. When you price a small job, how do you price it? If its a small job where they only want 2 lights changed and you don't want to waste time going to view it (especially if they decline you) .. obviously you work out how long it will take per light fitting X the rate you want. But what happens when you get there take the old fitting off and realise there is no continuous cpc and its a metal light and will take extra time to rectify which you couldn't guess when pricing it. How do you overcome problems like this without shooting yourself in the foot or causing awkwardness between you and the client?

Q4. Would you charge a day rate for being at 1 site location rather than hours x rate? e.g £60 x 9hrs = £540. Would you charge for a day rate of like £350 for the day or something? As its more job security for the day and you aren't spending time running around.

Q5. When it comes to rewires, how do you charge for that? As its a larger job.. price per point? All general points (hobs/showers/lights/sockets) the same price?

Any other info will be great as I often find

What I do is charge a call out fee of £50 and then charge£45an hour with an hour minumum.so a call out would be £95 then it’s 22.50 every half hour.where as a days work your better off charging the £350 .when it comes to Rewire s.then look at charging the £550 a day.always base it on a 3 bed with two sockets and a light in each room.£40 extra socket points and £30 a lighting point.when your giving people a quote never mention time unless they ask.bigger jobs always go to the nearest half day.so if you have a job that finishes at two charge the full day or a job i the morning that your done for eleven charge the half day.
M

 

[Mike Johnson]

Never charge a half day, you wont have another job to go too so the whole day is wasted on that job and don't forget the £0.50/mile out and back.

You could always use the "JCT Small works Contract"

 

[ppelec100]

It’s a big curve and everyone does things differently

rewires can be done per point , per room or day rate

I prefer day rate as this option covers for over run , extras etc

contracts , stage payments , money up front for materials etc

do you normally work out how many days you think you will be then X it by your day rate? or do you just charge per day as you go along... I would think the latter method would cause a commotion with customers as they may think you're taking the urine

 

[ppelec100]

I have a website with a full list of terms and conditions that I make it clear to the customer they are agreeing to when they accept my quote.

do you also include it in any emails, or texts incase of failures to pay or any misunderstandings which could lead to going to court? as in court they could argue that the T&C has changed and the official T&C at that time was not attached. i know this it a bit over the top thinking but it covers you right?

 

[ppelec100]

Never charge a half day, you wont have another job to go too so the whole day is wasted on that job and don't forget the £0.50/mile out and back.

You could always use the "JCT Small works Contract"

how do you justify that to the customer though when you carry out works from lets say: 8am to 12.30pm then you charge a full day of like £350 and then they confront you:

Client: "you haven't been here for the whole day"
Electrician "well I can't get to another job after this."
Client: "well that's your problem."

 

[ppelec100]

First piece of advice , ‘there is no such thing as a small / easy job’ , some Of the smallest jobs can be the biggest pains in the arse jobs that eat up time

London and the area of Surrey I live , around £90
per hour that is more call out work , jobbing calls from house to house

£400 per day if you want to be more competitive when pricing a bigger project or rewire for example

I try to avoid quoting blind but if pushed I will ask for photos of the work and photos of the fuse board etc

Can I just be nosy and ask how long you have been an electrician? Specifically how long you have been taking on privates to work your price per hour up to £90? What was your initial price per hour when starting out if you can remember...?

I don't feel to confident to charge anywhere near that right now, I'm 24 and still have a lot to learn, but eventually will want to get up to that rate.

 

[ppelec100]

What I do is charge a call out fee of £50 and then charge£45an hour with an hour minumum.so a call out would be £95 then it’s 22.50 every half hour.where as a days work your better off charging the £350 .when it comes to Rewire s.then look at charging the £550 a day.always base it on a 3 bed with two sockets and a light in each room.£40 extra socket points and £30 a lighting point.when your giving people a quote never mention time unless they ask.bigger jobs always go to the nearest half day.so if you have a job that finishes at two charge the full day or a job i the morning that your done for eleven charge the half day.
M

Can I just be nosy and ask how long you have been an electrician? Specifically how long you have been taking on privates to work up to your price per hour? What was your initial price per hour when starting out if you can remember...?

I don't feel to confident to charge anywhere near that right now, I'm 24 and still have a lot to learn, but eventually will want to get up to that rate.

 

[Dustydazzler]

Can I just be nosy and ask how long you have been an electrician? Specifically how long you have been taking on privates to work your price per hour up to £90? What was your initial price per hour when starting out if you can remember...?

I don't feel to confident to charge anywhere near that right now, I'm 24 and still have a lot to learn, but eventually will want to get up to that rate.

pits all down to experience

I started out employed for the first 5-6 years so was paid by the company a salary so had absolutely no idea what rates were but to put it into perspective was getting around £90 per day when I left the company

when I went self deployed around the mid 2000, I set my rate low at iirc £20 per hour or there abouts or £170 per day if I felt day rate was more appropriate for the job

I was incredibly busy rushing around like a mad man doing 11-12 hour days and Saturdays and Sundays most weeks

it was only when I got chatting to other sparks I realised they were charging double what I was , some treble

typically you need to do your market research in your area , see what others are charging

but Generally £400 per day what what most trades charge in my area

 

[Mike Johnson]

how do you justify that to the customer though when you carry out works from lets say: 8am to 12.30pm then you charge a full day of like £350 and then they confront you:

Client: "you haven't been here for the whole day"
Electrician "well I can't get to another job after this."
Client: "well that's your problem."

Electrician "No its your problem, because its what I told you when you called"

 

[loz2754]

do you also include it in any emails, or texts incase of failures to pay or any misunderstandings which could lead to going to court? as in court they could argue that the T&C has changed and the official T&C at that time was not attached. i know this it a bit over the top thinking but it covers you right?

No. Maybe I should.