methods of pricing work

[malachi]

Hi guys
Am new to the plumbing industry in terms of pricing work. I don't want to charge my customers an arm and a leg. What is the best way or method of pricing work.

 

[erpkid]

Experience. The more you have the easier it gets and also the more value you can give so both rates and accuracy go up. Even now I still get things wrong....but don't worry abut the arm and a leg bit the customer will let you know. When I started out and was busy an older plumber said I was too cheap. Put your rates up and when the work starts to tail off you are just about right. Still working on the just about right so I guess when I retire I will have it cracked.

 

[snowhead]

Keep a book
Guess how long an individual job will take, write it down.
Keep track of how long the job actually took, write it down.

If it's a job with only a few fittings or small amount of pipe, guess the price as well and repeat as above.

Compare the 2, and allow for the difference next time.

As previous post, when you've done a good few jobs your accuracy will get better, except the totally disaterous jobs which you can never predict.

 

[SimonG]

Look at job list out all materials you think you will need. If it's a big list it goes to 2 or 3 merchants to price up and then add your profit. Look at job again and see how much time you think it will take. Add them both together and then see if you want to add some extra for the 'trouble' factor. i.e. is the job or cust going to be a problem.

If you win 1 job in 3 then you are near the mark.

 

[erpkid]

Also be wary when the customer mentions throwing off another plumber/builder etc or there being a problem with previous work. It might be true but now I tend to steer clear of these after being burnt a few times.

 

[850Rick]

Also be wary when the customer mentions throwing off another plumber/builder etc or there being a problem with previous work. It might be true but now I tend to steer clear of these after being burnt a few times.

What do you mean by that mate

 

[stevetheplumber]

actually if you can get away with it charging an arm and a leg is good nowdays id settle for just a leg and a few fingers

 

[erpkid]

What do you mean by that mate

This does not happen often but when the customer is getting you in to finish or sort then this does ring alarm bells. I know we are not superhuman and make mistakes but some people have unreasonable expectations and so I tend to be wary now. When i was younger this was different and part of the learning curve but now if I don't feel right about a job I stay clear. If a fellow plumber has been thrown off I wonder why and unless I see shoddy or dangerous part completed work I walk away.

 

[lame plumber]

once you have had your first proper lemon of a job, you'll soon get much much better at estimating jobs in your favour and not worry so much about being cheap enough to get the job!

 

[Avatar]

It has taken me years to develop my 'nightmare job' warning system and when I started I walked carelessly into a few I can tell you!

One sniff of dodgyness and i seriously start to wonder whether I will do the job - and yes I have walked away from a few 'cowboy customers'!

Here are a few warning signs that make me think 'nightmare customer':

- (as aforementioned) customer calls you in to finish another's work as they had a 'disagreement' . . . .

- Customer insists on doing some of the work themselves to 'save money' . . . .

- Customer tells you what is wrong themselves and/or insists on watching you work (I hate this one!)

- Customer is short, rude or moaning before the job even starts (definite sign they will get worse!)

- Customer does not want to pay a bean upfront (on bigger jobs) - usually means they intend to withhold money at the end of the job . . . .

- and so on!


In fact I just walked from a job where the guy insisted on telling what the fault was himself. He refuse my access to inspect the job properly and wanted me to start knocking holes in someone's flat to find a leak that I advised him was most likely not there.

This guy is slightly mad actually and is EXTREMELY high maintainance! I have told him my professional opinion (as a plumber) and unless he lets me investigate all of the plumbing nearby to the problem I will refuse to go in and help!

My job is to go in and fix a leak and I will do that job for everyone's benefit and my reputation - what I will not do is satisfy the urges of the customer who looking at it may well even blame me later if damage is done and no leak is found.

Can I trust someone like this to pay me at the end of the job - well I have already been dicked around over 2 hours labour so - hell no!!!!

Learn to spot em coming ! say!

 

[850Rick]

This does not happen often but when the customer is getting you in to finish or sort then this does ring alarm bells. I know we are not superhuman and make mistakes but some people have unreasonable expectations and so I tend to be wary now. When i was younger this was different and part of the learning curve but now if I don't feel right about a job I stay clear. If a fellow plumber has been thrown off I wonder why and unless I see shoddy or dangerous part completed work I walk away.

I get you now lol

 

[Rodolphe]

- Customer is short

Avatar, that is discrimination against the vertically challenged, that is!

Joking apart, good post. I wish I could afford to turn down anyone though...

 

[R1CKY]

For big jobs, take a good look around, write down as many details as you can and even take photos. Tell the customer you will get back to them in a few days and mull the job over and over in your head. A few times I have jumped right in with a price and forgotten something, which ended up me not making much, if any profit!

When pricing up materials, I add a small percentage for extras you may not have accounted for and for consumables, like gas, solder, clips etc.

 

[Rodolphe]

I did that only recently. Cast iron gutters replacement, the client wanted cast-iron look-alike plastic.

I mis-read the description on P***fix when quoting my work and quoted half the materials at the price of normal downpipe. Paid up the difference out of my own pocket and JUST managed not to loose any hard cash, but it was a day's work for no money... it happens.

 

[LPC]

/or insists on watching you work (I hate this one!)

The worst possible thing a customer can ever do.

 

[CMcM]

Also be wary when the customer mentions throwing off another plumber/builder etc or there being a problem with previous work. It might be true but now I tend to steer clear of these after being burnt a few times.

Some times if times are tight i do these but on an hourly rate..

Before i started pricing my own jobs i took a mental note when finishin my apprentiship how long jobs took and what other guys on the site were charging so roughly knew what to charge, These days i know what i want payed for the job then add a wee bit extra on because so many folk dont like paying u the full whack anymore. Thanks TV..
So add on that extra %age and if they arent happy about something u know is rite then just say take of £X where X is ur wee extra %age 😉

hope it helps

 

[Guest123]

Use this SIMPLE formula;

cost of materials plus 30% markup
daily rate or hourly rate x time to complete the works
add on 5% to total to cover fuel, business expenditure.

So taking this as a working formula to cost supplying and fitting 2 lever ball valves:
2 15mm full bore lever ball valves = £8.00 plus 30% markup = £10.40
daily rate is £200 or in this case hourly rate is £30 x 1 hour = £30
SUBTOTAL = £40.40
Plus 5% expenditure
TOTAL COST FOR JOB = £42.42

Use your own rate, material cost etc.

 

[payney1974]

It has taken me years to develop my 'nightmare job' warning system and when I started I walked carelessly into a few I can tell you!

One sniff of dodgyness and i seriously start to wonder whether I will do the job - and yes I have walked away from a few 'cowboy customers'!

Here are a few warning signs that make me think 'nightmare customer':

- (as aforementioned) customer calls you in to finish another's work as they had a 'disagreement' . . . .

- Customer insists on doing some of the work themselves to 'save money' . . . .

- Customer tells you what is wrong themselves and/or insists on watching you work (I hate this one!)

- Customer is short, rude or moaning before the job even starts (definite sign they will get worse!)

- Customer does not want to pay a bean upfront (on bigger jobs) - usually means they intend to withhold money at the end of the job . . . .

- and so on!


In fact I just walked from a job where the guy insisted on telling what the fault was himself. He refuse my access to inspect the job properly and wanted me to start knocking holes in someone's flat to find a leak that I advised him was most likely not there.

This guy is slightly mad actually and is EXTREMELY high maintainance! I have told him my professional opinion (as a plumber) and unless he lets me investigate all of the plumbing nearby to the problem I will refuse to go in and help!

My job is to go in and fix a leak and I will do that job for everyone's benefit and my reputation - what I will not do is satisfy the urges of the customer who looking at it may well even blame me later if damage is done and no leak is found.

Can I trust someone like this to pay me at the end of the job - well I have already been dicked around over 2 hours labour so - hell no!!!!

Learn to spot em coming ! say!

What about when they start with "Its an easy job, it will only take you 5 minutes"??? I tend to say "why don't you do it yourself then?"

 

[lame plumber]

when giving daily rate, remember youll never work 8 hours straight, allow for working 6 to 61/2 only, that add materials plus 20 -30%, THEN work how many days your going to take and add a bit for snagging etc. you 5 days to do a full heating system can easily turn into 8 -10 before you know where you are. bid higher and right and lose a few quotes rather than working for peanuts

 

[Avatar]

These days with everyone competing to be cheaper than the next guy I pitch myself as 'reasurringly expensive' and tell customers that I wont be the cheapest quote, but I will take the time to do the job properly . . .

I do also tend to add a margin onto a big quote to allow a little lee way -

- 10-20% extra to cover little extras and things that take longer (which they almost always do!) This I call the error factor which allow for some inaccuracy in my quote.

- maybe up to 50% extra for jobs that are going to be a pain or if the customer is high maintainable You have to calculate how many hours they are going to waste.

Any more than this simply says that I do not want the job!

 

[hammers4spanner]

Use this SIMPLE formula;

cost of materials plus 30% markup
daily rate or hourly rate x time to complete the works
add on 5% to total to cover fuel, business expenditure.

So taking this as a working formula to cost supplying and fitting 2 lever ball valves:
2 15mm full bore lever ball valves = £8.00 plus 30% markup = £10.40
daily rate is £200 or in this case hourly rate is £30 x 1 hour = £30
SUBTOTAL = £40.40
Plus 5% expenditure
TOTAL COST FOR JOB = £42.42

Use your own rate, material cost etc.

wouldn't get no work down this way with that mark up , turned into a joke doone sarf!!

 

[Guest123]

wouldn't get no work down this way with that mark up , turned into a joke doone sarf!!

Well, I won't spend hours sourcing materials for a customer and not get something back for it.

If you use the formula, make the mark up costs your own percentage.

 

[hammers4spanner]

i was doing 10% but marjins were to close so now doing 20% and works out fine keeps me competative , if i went 30% mark up then i'd be sat at home waiting for when i will win a job

 

[Guest123]

Every area and region in the UK has different prices. Doubt if any two are the same.

 

[markfxy]

anything less than a 30% markup isn't worth doing system 3's got the right idea with his pricing method