Too much work, how to cope with it all..

[Peter1891]

Morning Chaps
Just wanted some advice I’m a sole trader one man band electrician I’ve had my firm about 3 years and built it up slowly, recently taken on some larger projects like new builds etc for builder I know. I’m now in the position where I’m booked up until August. My worry is I’ve just had a regular contact me asking for shed power but I can’t fit her until August and that’s no good for her so I’ll likely end up loosing her as a customer which I’m not happy with really.
How do you guys deal with this situation? Do you sub it out? I’m loathed to take anyone on As this could just end up being a busy period so I could end up having nothing for them once it’s all over.
Any help or advice is appreciated

 

[Welchyboy1]

Morning Chaps
Just wanted some advice I’m a sole trader one man band electrician I’ve had my firm about 3 years and built it up slowly, recently taken on some larger projects like new builds etc for builder I know. I’m now in the position where I’m booked up until August. My worry is I’ve just had a regular contact me asking for shed power but I can’t fit her until August and that’s no good for her so I’ll likely end up loosing her as a customer which I’m not happy with really.
How do you guys deal with this situation? Do you sub it out? I’m loathed to take anyone on As this could just end up being a busy period so I could end up having nothing for them once it’s all over.
Any help or advice is appreciated

A good problem to have, i am in this situation frequently as i prefer to work on my own and dont want to grow any further

For me its a multi pronged approach, i do the following.....

Increase prices
Decrease the distance im willing to travel
Turn down jobs that are a pain
Turn down jobs that parkings a pain
Turn down jobs the customers a pain
Turn down jobs where the customer is or could potentially be a bad payer
Turn down jobs with a small profit margin

After that you will be left ticking along nicely with good quality work at good prices?

For the shed job just squeeze it in on a weekend if you can

 

[Marvo]

For me its a multi pronged approach, i do the following.....

Increase prices
Decrease the distance im willing to travel
Turn down jobs that are a pain
Turn down jobs that parkings a pain
Turn down jobs the customers a pain
Turn down jobs where the customer is or could potentially be a bad payer
Turn down jobs with a small profit margin

Exactly my approach. The main reason I make decent profit is because I'm fortunate to be busy enough to be turning about half my enquiries away so I can cherrypick customers and take on work that's my core business so I'm set up to do it efficiently.

 

[Peter1891]

Exactly my approach. The main reason I make decent profit is because I'm fortunate to be busy enough to be turning about half my enquiries away so I can cherrypick customers and take on work that's my core business so I'm set up to do it efficiently.

Do you not worry in this review culture we now have you’ll get negative reviews about being dismissive or expensive etc? I’m not saying you are I’m just wondering how the client would think.

 

[pc1966]

I think you need to be fair and consistent.

• If you are busy then you can explain that and offer what is possible. Folk get far more p-off by you not turning up when arranged than by being honestly being told it will take until such-and-such to get it done.
• Folk may well compare prices, so you need to try and move all work prices generally upwards until demand matches what you can supply and over a period of time. Suddenly doubling looks a tad suspicious!
• Some sites allow a reply option which can allow you to offer soothing words and see what their issue is, but never get suckered in to arguing on a forum. As the old joke goes "Never argue with an idiot; they will bring you down to their level, and then beat you with experience".

 

[123]

@Peter1891 are you VAT registered?
And if not, do you plan to be or is it something you want to stay away from?

If it is something you plan to stay away from, then there is a fair chance there is a glass ceiling you will hit that you can't go through without going VAT.

And if so busy under the current circumstances, I'd definitely be reviewing prices to see if too cheap.

 

[pc1966]

Good point about the VAT!

Also to bear in mind is the VAT threshold test is done on a sliding 12-month window, not on your financial year. So if you get a lot of work at the end of one year and at beginning of next there is a danger you pass the threshold even though both year's turnover is below it.

Unless you expect to be at/above VAT level for a good while you really want to avoid crossing that point! While you can claim stuff back, it adds a whole lot of extra accounting effort and pushes you in to the Making Tax Digital area. If you already use some software package to manage your daily stuff Xero or QuickBooks, etc, then its not such a big deal.

 

[Mike Johnson]

I would advise anyone to have a software package for your accounts and to be VAT registered even if you don't reach the threshold, the amount of monies you claim back on fuel alone is worth it without the reduction in outlay for equipment, but you need to be disciplined in keeping your records up to date.

 

[Peter1891]

@Peter1891 are you VAT registered?
And if not, do you plan to be or is it something you want to stay away from?

If it is something you plan to stay away from, then there is a fair chance there is a glass ceiling you will hit that you can't go through without going VAT.

And if so busy under the current circumstances, I'd definitely be reviewing prices to see if too cheap.

Good point about vat I am trying to avoid it if possible I’m not good at paperwork etc plus it’s only me that has anything to do with my company as in i price work I do the work I do my accounts and struggle now so adding something else that needs doing on a tight time frame unless neccasary I’d rather leave it.
My prices I’m not sure about as I don’t get involved in what other people charge so I don’t have anything to compare them to.
Examples coming up:-
2x 4 bed new builds £5600 & £5800 ish
Large 17 bed special needs home eicr £1000
3 bed semi basic rewire £3800
6 way board and 4 bathroom d-lights £795
Extend some sockets and add some light points in a garage conversion £587

 

[Welchyboy1]

I would advise anyone to have a software package for your accounts and to be VAT registered even if you don't reach the threshold, the amount of monies you claim back on fuel alone is worth it without the reduction in outlay for equipment, but you need to be disciplined in keeping your records up to date.

I use xero and although im no longer vat reg, it is effortless for vat returns etc, it automatically does it all for you, the days of inputting it all on excel are long gone thank god
Nowadays doing nearly all domestic work, i found it a great effort being vat reg, everyone trying to get you to knock it off, if you can stay under the threshold then i would do it, if however your work is mainly commercial or ind then its obviously a no brainer and i thought it was great especially when its time to buy a new van!

 

[Dannyboybl00]

I'm on the East Sussex/West Sussex/Kent border so depending upon your customer's location in ES I'd be happy to help.

 

[Zerax]

I would advise anyone to have a software package for your accounts and to be VAT registered even if you don't reach the threshold, the amount of monies you claim back on fuel alone is worth it without the reduction in outlay for equipment, but you need to be disciplined in keeping your records up to date.

Agreed... if most of your customers are also VAT registered. But if most are small, non vat registered domestic ones... they're paying 20% on your labour costs ! Could mean you miss out on lots of work to someone else, who's doesn't need to charge the extra !

 

[buzzlightyear]

on the East Sussex/West Sussex/Kent border so depending upon your customer's location in ES I'd be happy to help.

I think you could do the job, if he hands it over to you.

 

[Peter1891]

I'm on the East Sussex/West Sussex/Kent border so depending upon your customer's location in ES I'd be happy to help.

Thank you mate, I’ll keep it in mind. I’ve followed advice on here and I’m going to quote later today for the shed install and will take a day off sites to fit her in.
thank you all so much for your help. Dannyboy I’ll be in touch then.

 

[davesparks]

I would advise anyone to have a software package for your accounts and to be VAT registered even if you don't reach the threshold, the amount of monies you claim back on fuel alone is worth it without the reduction in outlay for equipment, but you need to be disciplined in keeping your records up to date.

Are you actually any better off being Vat registered?

 

[telectrix]

being non=vat registered can be a pain if client is business. they can't get the vat back on materials. whet i do is get them to pay for materials and get invoiced direct by supplier.
downside is I don't make a mark up.upside is, I don't have th stand the cost of materials, and client gets his vat back.