That old chestnut again - pricing!

[Masood]

OK, don't flame me for this, please, but I am really confused and could do with help and advice from the more experienced members.

What is a fair day rate for general plumbing work in London? What about gas work?

The firm I worked with whilst at college, and did my gas portfolio with, charge £250/day. Or £60 for the first hour, and £40/hour thereafter. First hour charged regardless of how short the job was, subsequent hours charged in 30 minute increments.

I've been told that by another plumber that £250/day is excessive, and that no builder will pay that. Fair enough, I understand that subbing is a different ball game. What about "retail" price as it were?

What would you consider a fair price for labour for a straight boiler swap? A conversion from open-vented to sealed system? Conversion from HW cylinder to combi?

I know that all things are variable according to specific circumstances of the job, but I'm newly self-employed, and I don't want to overcharge as I feel it's morally wrong (and will lose me business!) but equally I don't want to go in so low that I'm undercutting other tradesmen and driving prices down.

Again, please don't be exasperated - I'm at that critical stage when I'm building a good reputation and am trusted by my customers, my customer base is expanding through word-of-mouth, and if I get it right, I could go from strength to strength. If I get it wrong, well, all my efforts will have been in vain!

Thanks in advance!

 

[Doodlebug]

Whatever you charge, you have to make sure you. Over your overheads. Phone around locally and get prices. That way you will get a general idea of what others in the area are charging.

 

[CES]

How much do you value yourself and your services? That's the question.
Someone who wants the cheapest price will get the cheapest job, not necessarily the best, not necessarily the worst.
If people don't want to pay my rate then I don't want to work for them, that's how simple it gets. The losing work analogy is a false representation, if it were true then people would never use British Gas for boiler installations. Most people do not buy on price alone, again, if that were the case then everyone would be driving cheap imported cars/vans, eating spam and tesco value beans.
You will however get people who want a cheap job done and if you need the work then only you can make the decision if your skills can be undervalued. Remember if you do cheap work you will probably be recommended to others, not how good quality you produce, more how cheap you are.
Personally, I feel you get what you pay for and if customers don't want to pay what I feel I'm worth then why should I bother adjusting my level down to theirs?
Sounds a bit like a rant, but its not meant to be.

 

[Masood]

How much do you value yourself and your services? That's the question.
Someone who wants the cheapest price will get the cheapest job, not necessarily the best, not necessarily the worst.
If people don't want to pay my rate then I don't want to work for them, that's how simple it gets. The losing work analogy is a false representation, if it were true then people would never use British Gas for boiler installations. Most people do not buy on price alone, again, if that were the case then everyone would be driving cheap imported cars/vans, eating spam and tesco value beans.
You will however get people who want a cheap job done and if you need the work then only you can make the decision if your skills can be undervalued. Remember if you do cheap work you will probably be recommended to others, not how good quality you produce, more how cheap you are.
Personally, I feel you get what you pay for and if customers don't want to pay what I feel I'm worth then why should I bother adjusting my level down to theirs?
Sounds a bit like a rant, but its not meant to be.

No... not a rant at all, Connor, that really mirrors my thoughts, but... there's always that nagging doubt, isn't there LOL.

I have been pricing at the £250/day rate, winning business and getting recommendations. I'm not bragging (well, maybe a little LOL), but I hear, over and over again, "I'm so glad I found you!". I'm open and upfront with customers about my rates, and standards - I won't fit rubbish components, won't do a shoddy job, and will go the extra mile - often without charging extra - to leave a good finish, or just do the job right. I'll even replace old shonky parts that might be nothing to do with my job, but if it makes sense to do whilst I'm doing what I'm doing, and it'll mean the customer will not have a load of hassle some time in the future

But... I'm still unsure of myself! 🙂

I guess as long as people are happy to pay my rates and recommend me I can't be too far wrong, but confidence takes a whilst to build up! 🙂

 

[CES]

No... not a rant at all, Connor, that really mirrors my thoughts, but... there's always that nagging doubt, isn't there LOL.

I have been pricing at the £250/day rate, winning business and getting recommendations. I'm not bragging (well, maybe a little LOL), but I hear, over and over again, "I'm so glad I found you!". I'm open and upfront with customers about my rates, and standards - I won't fit rubbish components, won't do a shoddy job, and will go the extra mile - often without charging extra - to leave a good finish, or just do the job right. I'll even replace old shonky parts that might be nothing to do with my job, but if it makes sense to do whilst I'm doing what I'm doing, and it'll mean the customer will not have a load of hassle some time in the future

But... I'm still unsure of myself! 🙂

I guess as long as people are happy to pay my rates and recommend me I can't be too far wrong, but confidence takes a whilst to build up! 🙂

If you are getting good feedback (which it sounds like you are to me) then why change? At the end of the day being self employed is more than just being able to install/service/repair. Confidence is crucial, the more confident you are in yourself then you will be able to sell yourself better and win more jobs. You will always get someone who batters you down a bit and some days you will ask yourself "why am I in this game?" but persevere and you will get there.
By the way, most builders will argue about price even if you said it was free, probably why i don't work for builders anymore! :grin:

 

[jtsplumbing]

Whish we could get £250 a day in my neck of the woods, but then people down here not earning the same as London ! but then who wants to work in the city ? used to a few years back, but never again.

 

[Doodlebug]

If you are getting good feedback (which it sounds like you are to me) then why change? At the end of the day being self employed is more than just being able to install/service/repair. Confidence is crucial, the more confident you are in yourself then you will be able to sell yourself better and win more jobs. You will always get someone who batters you down a bit and some days you will ask yourself "why am I in this game?" but persevere and you will get there.
By the way, most builders will argue about price even if you said it was free, probably why i don't work for builders anymore! :grin:

Well said, couldn't of put it better myself. Wise words. Listen to this mans advise.


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[Leo21]

I don't know about London prices, but £250 a day is a bargain even where I am in the west mids it's to cheap. But iff your happy, get busy then put your prices up when your happy to, or settled. As far as builders go, don't bother unless you have to. All they do is moan and take up valuable time. And you'll never be cheap enough.