Pricing + acceptable rates and mark up

[Chester]

Hey guys, recently had a bit of a dispute over a quote asking me to break it down etc saying they can buy this from X for Y.. how much is labour/materials.. shockingly it was from friends so it's taken its toll on me mentally if I'm honest.. I'm don't think I'm outrageously pricey but I do a good job and people know that. The job I quoted for is part of a much bigger job that I'm now feeling guilty over making any profit on other than wages whilst drawing up the interim invoice, I asked what the budget was pre starting and they said there isn't, that doesn't mean I've thrown my usual calculation methods out but I've not gone speedfit bonanza either.. I know the general way to work out an hourly rate but that depends on the van you drive etc too, I'm talking for larger jobs too, like this job is 2 bathroom Reno's (1st and 2nd fix, one was a bedroom being converted into a shower room) I've done the stud work for it too, a kitchen 1st and second fix, vented to unvented convert.. rad removals, plus a load of other carpentry related bits.. I'm at a loss as to what's an acceptable day rate, acceptable hourly and acceptable profit margin on larger work plus markup %s, Atm I day rate look for £250 if possible, smaller jobs 60£ first hour then 30£, anything over 5 hours I consider a day really.. markup flat 20% and then say for this job I would do a day rate for the amount of days I think it'll take then add on 20% on labour for the inevitable balls ups which serves as my "profit" if I hit my guesstimated daily allowance. 20% markup materials, I still feel like this only buys me a day or 2 tbh and considering the risk it's quite demotivating. Any advice appreciated, I know this is a hard sum to quantify but just looking for a guideline I can stick to, am I am on the money or am I expensive? I'm based in south east. Cheers

 

[Timmy D]

Nothing wrong with your prices, cheaper than me.

I only work for a select few friends and they’ve never questioned the cost. The work is top quality and the cost is the cost.

I’ve told them, if you’re not happy with the quality, I’ll fix it (Has never come in to question).

If you’re not prepared to pay the cost, I won’t work for you as I’ll earn the money somewhere else and not have to risk losing them as a friend.

It all depends on the relationship. I did a whole house refurb (mains/all supplies/rads/underfloor/3 bathrooms), friend didn’t even want a quote, told me to do it and tell him how much I wanted when completed. Saying that, he works in construction so understand the cost of works.

 

[Ric2013]

A few years ago, I estimated a job for a friend at 2 days plus cost of materials. And did she want a quote?

She said it's fine as long as it doesn't come to more than £500 as that was what she could afford.

As I finished and she handed me a plate of food for the second day running, she asked what she owned me. I said I was about to work it out and to give me a minute (think the total would have been around £400). She said she'd seen me working hard and later than expected and thanked me for working around her clutter. She handed me a brown envelope and said to keep the contents but let her know if it came to any more...

... inside was £500. "Mates rates" works both ways!

 

[chucka]

unless the people (friends) know what self employment means then they don't have a clue what your actual working/running costs are. And to be fair when i was employed I didn't understand either. However when i did start a self employed business (not plumbing but PC servicing/repair) as a naive young man i suddenly had all of these costs!!!

To make it worse I was quoting as if I was the client.. Totally wrong thinking till someone older told me I was quoting as an amateur. I was not making much money to live on at all. Your tools never last forever and the van doesn't get fixed for nothing.

When client say they can get a part from Aldi/Lidl for x amount I start looking elsewhere. If the part from Aldi goes wrong they can get there money back (great) but it won't be for sale again probably till next year!

It makes me laugh inside now but working for friends in the past was not usually a good idea (you always gave free advice and tips on getting their computers working)... However some wanted to pay 'before' the job was done and other kept you waiting for payment because they had an unexpected bill come in..; like you don't have bills either?

Stick to your quote or ask them to get another quote.. see how that goes .... LOL

 

[PETE 123]

My veiw is if your getting trouble b4 you even start a job its not worth the risk.