pricing

[colin2003]

i am a domestic installer who has not been trading long therefore not yet done much pricing of jobs , i have been told to price of plan you count the points and charge a fixed amount for each point if this is correct how much is average price per point {told it was about £40 per point }.any input would be very helpful thanks.

 

[RF Lighting]

It used to be £60 per socket when I was an appo about 10 years ago.

It depends on location as well.

Personally I have never priced like this. It's just far too inaccurate.

I estimate how long the job will take, times that by my hourly rate. Then work out how much the materials will cost. Add the two together, and there is your price.

I personally do not mark up the price of gear, but I understand some people do.

 

[sparkybird]

Hi Colin

I do as RF suggests for smaller or one off jobs. However, for rewires I use the 'per point' basis - I'm in London and currently charge between £60-£70 per socket point dependant on the job. Pendants and switches are more like £120-140

Hope this helps

SB

 

[colin2003]

thank you both for your prompt replys very helpful dont think i will get away with london prices in north wales so will have a think .cheers.

 

[sparkybird]

Colin - no prob - my hourly rate is £40 (no VAT as I'm not registered), if this might help in scaling down the prices. Don't go too low though or you won't make any money! Don't forget you have further to travel than me in between jobs and for quotes, so will have more mileage and 'downtime'.

When I first started I phoned a few local electricians pretending to me a householder and found out what my competition were charging. Maybe you can get your missus to do this?!

Good luck

SB

 

[Pensdown]

I personally do not mark up the price of gear, but I understand some people do.

That's OK for a few weekend private jobs but not if you’re running a business. All materials that are bought and then sold on must be marked up otherwise it affects how your accounts look.

For example, company X turns over £ 50k a year labour only with a gross profit of say 30% = 15k

Company X now supplies materials at cost which effectively doubles the turnover to 100k but doesn’t increase the actual profit of 15k. So in percentage terms the gross profit has reduced.

If the companies gross profit margin is not around the sector average it will affect how banks treat the company and how much the business is worth.

 

[sparkiedave]

also prefer the time/hourly rate method, sometimes depends on the layout of the house too

 

[oharaf]

I like to use both methods.
Often the price per point method is usful as a guide when people want an approximation.

I will do this and then say to them I will call them with a definite price later that day. When it is less then customers are really pleased

Small jobs, price the kit and then your time add the 2