Estimating pricing etc

[Koogatubac]

Job was a full heating inc new boiler in far end extention garage, bungalow.
Job entailed: full heating, new boiler, chasing in rad pipework in walls and 1 floor, condensate pump, frost stat, wireless roomstat n receiver.
All in all the best price at the local merchants was £2446. Ive just priced it all up with toolstation which everybody says they use near me. And toolstation was only £30 cheaper.

I did labour at £150 per day. Working even 10hours per day. So £15 perhour.
This alone is cheap for a self employed plumber.

Total length of job i allowed was 6 1/2 days. So once youve added your materials, labour and 20% as normally advised it gets you close to £4k

Told the custard and they expected close to £3k all in!

She said it was pricey, aswell as they will have to think about it.
Tryed ringing and even altered my labour to as low as £98 per day which was the least i was willing to work. Cant get hold so presuming ive lost the job (wanted it starting this week)

Btw posting this as 99% sure lost the job so need advice on this stage.

Is it me or the customer who is getting stuff wrong?!

 

[Roger Welton]

Advice being you win some you loose some, some customers really do want the moon on a stick.

If you get every job you quote for then you are too cheap!

 

[jtsplumbing]

Should have told them to get a price from BG,

 

[Koogatubac]

Thanks guys, ive been thinking alot about this. But im more likely thinking custards are just wanting EVERYTHING for nothing!

Just does your head in when you spend the time properly doing measurements and full estimates of every single fitting you need to do the job then its like you have wasted all that time!

Just like the above lad has said though

"you win some, you lose some!"

Ill just see the next big job that comes in...theres no WAY im budging from as low as £100 per day on a big job!

 

[CES]

Customers usually have no idea on price or inflation unless it affects them directly. I still get people who expect a boiler install to be about £800 all in, when asked they said that's how much it was the last time they got it done!.
You can be a very busy fool if you drop your price everytime a customer says you are too expensive. As said previously, you wont win every job, just move onto the next one.

 

[Nostrum]

Personally I wouldn't have dropped your price mate, makes it look like you had room to move. Just say there's not enough money in it to drop any more and be done with it. Some poor sod will be in after you and they'll say they've had a price for £XXXX so he will automatically try and beat it. Before you know it someone's done it at a loss just for the sake of going to work.

£98 quid a day is less than you'll get on the books by the time you take out overheads, probably nearer £50 in your pocket. Why bother, that minimum wage or less for all the hassle, responsibility and liability your taking on.

 

[Roger Welton]

When I price for a job, the customers can take it or leave it, I know times are hard but if you get a reputation for dropping prices you will live to regret it later.

If I get a call saying that *** has quoted £yyy can I match it I just politely refuse and let them know that if they change there mind or have any problems to give me a call.

 

[Koogatubac]

Very true sam, wise words from you all.
Learnt something now, once you give a price STICK to it!
Will look fishy as you say if you show you had 'room to move' on altering the price

 

[leepoll]

People just want things done for nothing. You know what your worth per day and as already said, give your price and stick with it.

 

[SimonG]

Too cheap, should have just said to customer, can't touch it. Try never go back and lower your price, especially when you went in as cheap as you did, customer will think you where trying to rip them off with the first price. I have a thermal store to do, up into loft, strip out airing cupboard ready for kitchen extension. Told customer just over 5k, they said thought it would have been cheaper, I told them straight it was as cheap as I could get it. Gotta do it before end of Sept.

I was told that if you are winning 1 job in 3 estimates then you are not far away with your pricing. In general you hear nothing if you don't get it. In over 7 years I've had two customers come back to tell me they've gone with somebody else.

 

[The Drain Dept.]

Wish I'd seen this thread other day. Had same prob as op. Spent well over a full day doing visits to and quotes for work on 6 properties for a large property co. Put prices in and they came back with pressure to reduce due to tight budgets etc. Lowered price as we could really do with an inroad into a client this size. Do hope it doesn't backfire on us now. I agree with other replies about your daily rate though. There's nothing worse than working like a mule all day only to have made less than enough for beans on toast for the kids.
It doesn't help when programs like Homes under da Hammer show people who recon they're gonna renovate the whole house including replacing that totally screwed heating system all with change from 3k! At best it gets some new gloss over the dog hairs stuck to the skirting mounted heating pipes but it still gives everyone else the wrong idea of costs.

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[jase158]

Just to put my two cents in, but I have been to quote for a job before and they have turned around and said "I'm just getting prices at moment, probably wont do work for some time" you think, well why bother, price will be different in 6 months and I just paid to get here i.e.

But then I have been quiet and they have called me back after 6 months, saying they want the work done.

every job is a potential, some you win some you loose. But I never think about it any more then I need to,

I visit, do quote, give call after 1 week, no response then I move on.

Only thing that I do is if they make me wait then I make them wait before I start and do other customers first.

 

[Koogatubac]

Least ive not been the only one... Just narks you off when you've spent all the time, would of been a nice earner and was 6days work!

Merchants even asked me the next day i told the custard the quote and i said that another merchant beat them in price, so somehow they slashed £175 off their price they gave me

That didnt make me feel any better since that difference maybe could of make them stretch to accept the job. God knows who they will get since i was willing to work for £11.80 per hour stretched over the job

 

[AWheating]

your price sounds fairly cheap to me. you will probably get a call in the future to put some things right as it sounds like they are after cowboy to install the work.

 

[jase158]

most people I speak to say £3k just for the boiler install, let alone the rest of the work.

 

[Koogatubac]

Aweating, im STILL getting beat by plumbers doing such jobs as combi to combi with 2 men doing the job taking a day £1000 :|

Just cant compete, even worked it out, their not actually making ANY business.

I plan to even put money into the business account to help 'grow' the business which i think is important?

How do these guys actually do this?!!

 

[AWheating]

How do these guys actually do this?!!

well they save money somewhere...... no GS register, no public insurance, no tax paid, Borrowed materials, Cheaper parts/boiler, no upgrade of gas and controls etc.......

it may be that they work for a company during the week and work on the side the weekend using there companies materials etc......

 

[Mike Jackson]

£150 a day is far too cheap. Since I've gone back self employed I'm trying to work smart, not hard.

 

[The Drain Dept.]

Its a race to the bottom on price. I'm trying to build a rep for good quality, honest, hard work but it clearly takes time. Some people really do value good work though and are wary of cheapest price being poor work.

Regarding working for next to nothing, I was doing an absolutely ****ty job other day in a pretty tough street. Basically doing a drain, there was **** everywhere, rat ****, fly tipping next to it with used needles mixed in and the job was just about paying its way. Was keeping one eye on the van and one on what I was doing as a guy walks past who had no risk of ever being employable and promptly tells me that's a **** job and I wouldn't catch him doing something like that.
I Know mate... I know!

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[SimonG]

If I'm happy with what I'm being paid I do an excellent job, if I'm not happy with what I'm being paid, am I happy doing it?

As confucious might say 🙂