Pricing

[menace 1984]

Hi All

I'm in the beginning of trying to build a business for myself after 14 years in the trade. I'm struggling a little bit on trying to formally a pricing structure. I want to be competitively priced while making a good profit. Any tips on how to go about this.
I'm currently going in at £200 a day plus materials with 10% or £20 an hour on smaller jobs

Thanks all

 

[Darkwood]

Please be careful when talking about pricing on an open forum for all to see.

 

[Octopus]

Hum... £20 for small jobs? How many of these do you think you can do properly in 1 day, including travelling etc - it won't be 10 and thats for sure.

How do you come to £20 per hour if your day rate is £200? Do you work 10 hours every day?

You should have an higher first hour rate IMHO and a higher "subsequent" hourly rate

 

[Englishman]

£20 an hour is a recipe for bankruptcy.

 

[menace 1984]

I do charge double that for the first hour to cover travel. Wanted to know if fixed pricing on certain items works for anybody rather than a time structure. Just look for a bit of a bench mark. I use certain Web site to bring in work and I seem to be more expensive a lot of the time and I don't seem to be making much profit to reinvest in myself

 

[Andy78]

As above, my hourly rate is more than my day rate divided by hours in a day.
This is to reflect the extra time involved with paperwork, travel, material sourcing etc associated with smaller jobs.
I also have a "first hour" rate to cover the callouts/really small jobs

 

[uksparks]

I'm at £200 per day or £30 per hour, if day take 5 or more hours, it's £200

 

[menace 1984]

Obviously people want to get the price down. Ito nice to know your pricing is right would hate anyone to think I'm trying to rip them off. Although pricing is individual to the company

 

[menace 1984]

If it's a good days work would you allow another half day or keep it at a day to keep the price down

 

[Flanders]

You need to charge more for you first hour to cover getting to the job paper work etc , when working out your day rate you need to account for your holidays that you want get paid for

 

[Hellmooth]

£50 call out/first hour then £30 thereafter, £240 a day average but can be anywhere from £200-£300 depending on circumstance. I used to be to soft and would say 'just call it........xyz'. But now I've got a more structured pricing list and I'm finally starting to see some profit, customers are happy haven't ever had one complain about price.

 

[hightower]

I'm at £200 per day or £30 per hour, if day take 5 or more hours, it's £200

5 hours is 150 quid by your hourly rate. So if you're on site for 5 hours you automatically give yourself a 50 quid bonus?

 

[stevethesparks]

Shouldn't this be in the "Arms" section?

 

[Englishman]

Yes it should

 

[Marvo]

The OP isn't an Arms member and unfortunately requires 100 posts to qualify for access. Pricing structures aren't exactly trade secrets so you're welcome to discuss this in the public facing forums but please be aware what you post here is publicly viewable.