Pricing tips

[bronz]

And then next week you'll get on an outside job and the customer will go "Don't worry about doing that window, I'm getting it replaced," and there's a couple of hours extra in the pub! All swings and roundabouts.

As far as detail in quotes goes, the professionalism of it does help but often I agree it's the price that swings it. For me it's just good to be covered, whenever I get a written quote in everything goes swimmingly, on the rare occassions that I don't for whatever reason Sod's Law dictates that something goes wrong and I'm left high and dry.

This thread is a great resource for new decs particularly, if for no other reason than to show that there are lots of ways to get it right, depends on your character and how you prefer to do it, but also there are some pretty glaring ways to cock it all up.

[54aardvark]

I'm with Bronz on this one, you can spend hours sweating over every aspect of the job to get an accurate quote and inevitably Sods Law intervenes.

I know what I want to earn in a month and if I lose a couple of hours on one job and gain a couple on another no problem, I'm happy to reach my target - although I tend to be picky and generally over-run a bit but thats usually just the bells & whistles and Knobs & knockers (un-qoted stuff) which, from the Clients point of view, shows that I really care about what I'm doing and I'm the first one he calls for new work or referring to his friends. What I may have lost in a couple of extra hours more than covers what I'd spend on advertising.

[royaloakcarpentry]

Make sure you actually make a visit to price!!!!!!

Firm I sub work from, often price up from insurance company description. UUUUhhhhhh Ohhhhh!

[stevewestern]

I am lucky not to have had to price a job for a long time - that said, I no longer work much due to injury and old age etc, but when I was pricing up jobs I always tried to allow for every possible problem, and explained that. I was always able to then reduce the final price, and often by a large margin, which resulted in me loosing loads of work due to being too expensive BUT gaining a few really good clients who would trust me, leave me to it, and also who passed my name on to others. Many are now good friends.
I am not suggesting this is a good way to run a business as I rarely made any decent money but I never had any problems with not being paid or call-backs - Answering the phone was not a problem !
This was in London and 15 years or so ago, so there was still plenty of money about and everyone had a cowboy story, so a reputation was almost more important than the quality of the work.

[FLAWLESSFINISH]

This being a sticky on the forum was a great idea considering the title of the thread.

However is there actually much advice here on pricing up jobs. The only bit I can see is don't forget to add in time for sheeting up and cleaning up and price realistic that was a first thread.

Then it side tracks to Terms of business about moving furniture and taking a 20 - 25% deposit. That's not actually about pricing a job is it. That should be a completely different subject all together.

Would it not be more helpful to the new ones learning our trade and even the old ones to give advice on how long things take on average. I know everyone works at different speeds but at least it gives an idea. Say hour to paint a door or spray it in 10 minutes and 15 minutes masking and removing fittings.

Or a touchy subject I would imagine on what to roughly charge as a day rate or work out the cost of the job like materials labour and add 35%

Or a set price per room say £300 + materials - depending on the size and prep required.

[dynamod]

May sound really obvious to say this, but the amount of guys I've met that are afraid to put in what the job will cost in order to appear competitive is unbelievable!

Exceptions to this might be, for example, if a job came to £1,025 - it may be good sense to drop, say £30 to get the price to £995. You're not likely to go out of business for a small sum like this, and to the customer it looks a lot better.

People are still influenced by the appearance of a 3 figure sum, rather than a 4 figure one, so a good way to look competitive without cutting your own throat.

Obviously depends on how much work you have on at any given time.

[Tom d'Angler]

I think £1025 looks more genuine than £995. It looks like a properly worked out figure.

Imagine if Tesco priced everything to end in .99 - we would all think they just made it up.

[dynamod]

I take your point but most of the larger shops are pricing everything at £.99 - and yes, it is made up.

If you see an item at £9.99 rather than £10.01 (unlikely) there is a part of your brain that sees "under a tenner". We know, intellectually that there are only pennies involved, but is still sways a lot of people even though they know that the £.99 is a marketing ploy. By knocking a quote under a certain figure, you make your price more attractive and the customer scores a little from the overall price.

Just a quick look at the B&Q site (paint) shows literally pages and pages of items listed at £.98 (must be the new £.99)

If it works for them .................

[PaintyLee]

I am with dynamod on this one, I wouldn't knock a massive amount off to give the illusion of a good deal, as this could affect the end profit but a little to sway the customer I would do.

I even knocked £20 off of a job the other day as I finished way earlier than expected, I priced it blind I know not a good idea but it was only a tiny toilet and a couple of rads. I still managed to get a day rate I was happy with I just lost the little "extra" that goes in for sundries, fuel etc etc but as it was only 5 mins from home and I barely used any mats I was happy as I know it should lead to more repeat business.

[kevinscotland]

Just a quick look at the B&Q site (paint) shows literally pages and pages of items listed at £.98 (must be the new £.99)

I assumed this is so they can say they are cheaper than their competitors [who are are charging .99]

[ducrogers]

This is not a tip, more a question........
When you guys work out a quote / estimate do you work it all out ie materials , labour fuel etc and then do you had a percentage on for profit? ie 10 , 20 % ....just a thought.
or do you say charge 120 a day but pay yourself 100?

[Tom d'Angler]

or do you say charge 120 a day but pay yourself 100?

Yes, except it's £150 per day, or higher for outside work, and more if I have to travel more than 5 miles.

[ducrogers]

or do you say charge 120 a day but pay yourself 100?

Yes, except it's £150 per day, or higher for outside work, and more if I have to travel more than 5 miles.

£150.....jeeeez , good on ya though couldn't get that round my neck of the woods..
yea thats what I do....it was just a thought on the percentage thing...

[Tom d'Angler]

£150.....jeeeez , good on ya though couldn't get that round my neck of the woods..

It's not that much when you think about it. A standard room (fill holes, rub down, two coats on ceiling, walls and woodwork, tidy up, etc.) is done in two days (actually a day and a half usually but I still charge for the two days) which works out to be £300 per room plus paint.

£300 a room isn't too much.

It's our job to demonstrate the customer will get good value for money by giving excellent service and doing a quality job.

[handypainter]

or do you say charge 120 a day but pay yourself 100?

Yes, except it's £150 per day, or higher for outside work, and more if I have to travel more than 5 miles.

£150.....jeeeez , good on ya though couldn't get that round my neck of the woods..
yea thats what I do....it was just a thought on the percentage thing...

Personally, £150 is the highest rate for the furthest jobs and I rarely charge this as this is a bit steep in my area too.

But yes, you know what you want to earn in a day, so just add on to your day rate any extra allowances. It's very quick to work out how much a job is going to cost then when asked verbally for "a rough idea"