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Yeah Pat, we charge a minimum of £50 excl VAT for non-contract work and that now rises in line with the product hitting about £100 for the really top end stuff. I just refuse to work for nothing, as Alexa says, he can sit on the beach and earn nothing, which is a topper I must try hard not to say that to a customer! 😆
K.
Pat-UK wrote:I spose I’m more worried about keeping them coming back than being rich.
Believe me, you wont get rich in this job anyway.
However, having a substantial cash flow will benefit you, your customers and your business, your competitors, the government.
Being poor will do none of the above anygood.
Re: Who charges what for what ??
As I don’t have premises or staff, my overheads are extremely low but I don’t have the buying power of a big firm so I have to pay more for spares. Swings and roundabouts really but I would have thought you have to set prices so that you don’t price yourself out of too many jobs. I find if I quote £100 for a washing machine repair, 90{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} of customers decline to go ahead. The sole trader will also be looked upon as a cowboy by some people who are impressed by the big adverts of the larger companies. As it happens, there are no big firms covering my patch apart from manufacturers repairers and those with extended warranty contracts. I’ve found that such warranty work as I’ve been offered has not been worth doing e.g. £30 fixed labour fee with no mileage allowance and I get sent to a job 40 miles away! When the spares are provided you don’t make any profit on them.
Phidom wrote:As I don’t have premises or staff, my overheads are extremely low but I don’t have the buying power of a big firm.
Keeping your overheads low is what it is all about.
Earning enough is also what it is all about.
I would think that there would be no great buying power advantage by bigger firms unless they are agents and they are restricted on mark-up
Your service should speak for itself
More profit = bigger ads
Your self employed, do work on your terms, not that dictated by someone else, unless of course there is a decent buck in it
Quote “If hard work were such a wonderful thing, surely the rich would have kept it all to themselves”
Re: Who charges what for what ??
Fascinating reading, I cannot believe how modest some of your charges are? To say appliance repairers generally are “the salt of the earth” is a gross understatement at best. There’s Lawrence prepaired to drive 30 miles through the leafy lanes of Suffolk for just 50 quid. Pat in the garden of England sticking motor brushes in for a pawltry 35 quid. Phidom actually takes the drum out to fit a door boot and then only charges 55 quid, bargain.
Down in Oz “lumping” is banned! And in some parts of the UK there are others who will not get off their beachtowel for less than 50 quid :rotfl:
My God!..thanks for the reading….I feel much better now 😀
Must dash off now for anothers days ‘hard graft’ ……..HI HO, HI HO!!!!
Martin
Martin wrote:
Down in Oz “lumping” is banned! And in some parts of the UK there are others who will not get off their beachtowel for less than 50 quid :rotfl:My God!..thanks for the reading….I feel much better now 😀
Must dash off now for anothers days ‘hard graft’ ……..HI HO, HI HO!!!!
Martin
What is “LUMPING” Please explain
alexa wrote:What is “LUMPING” Please explain
I think Martin means “Lumping around” as in “can’t be arsed to do anything”, lethargy 😀
Dave.
Re: Who charges what for what ??
Martin wrote:There’s Lawrence prepaired to drive 30 miles through the leafy lanes of Suffolk for just 50 quid. Pat in the garden of England sticking motor brushes in for a pawltry 35 quid. Phidom actually takes the drum out to fit a door boot and then only charges 55 quid, bargain
Martin, we had a conversation last year at Sibson if you recall highlighting the regional and customer base issues that affect the rates that can be charged, which started off as an engineer’s salary theme.
It’s really a case of what makes a profit for you as all businesses differ along with the customer base and what they are willing/expect to pay.
What customers expect to pay is something we can all work toward improving as this has been erroded over recent years due to the ridiculous price war between the sheds and the lowering product shop floor price.
We actually cover a 45 mile radius from base and charge £39 ex VAT and £49 ex VAT for gas, irrespective of how far we go. As we carry a vast spares stock our first time fix is extremely good so that works for us and we get the customer back every time pretty much as well as make a tidy profit. Plus we’re still a lot more expensive than most others in Devon.
We also mark up genuine spares at 50{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} net on cost, irrespective of what the maunfacturers “list price” tries to dictate, and a lot more on pattern spares 😉
The only time we “up” the labour rate is for drum out jobs etc and any chargeable work referred to us by Manufacturers which more often than not will prove to be a double visit.
I thought that the overhead/profit calculator was in the downloads, it isn’t for some reason so I’ll ask the creator’s permission to post it.
Dave.
We also mark up genuine spares at 50{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} net on cost, irrespective of what the maunfacturers “list price” tries to dictate, and a lot more on pattern spares 😉
Love that. me 33.33{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} on genuine, normally 100{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} on pattern, and to up to 300{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} on hoses.
Check your local hardware if they sell the hoses and what they charge
Dave_Conway wrote:I think Martin means “Lumping around” as in “can’t be arsed to do anything”, lethargy
No, ‘lumping’ is a term that means companies that compete in the same type business, agree amongst themselves what they are going to charge for their products and services :lesson:
Common practice among the big boys, frowned on by the Government but rife in all industries.
Dave_Conway wrote:Martin, we had a conversation last year at Sibson if you recall highlighting the regional and customer base issues that affect the rates that can be charged, which started off as an engineer’s salary theme.
My post was no critisism of what individuals charge at all. No need for anyone to justify their charges here either. My comment was that clearly we in this business are the salt of the earth in more ways than one and rightly so, this topic proves it 😀
MartinRe: Who charges what for what ??
Only 100{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} on pattern spares alexa? So if you pay £4 for a pump you charge £8. Bargain 😈
Phidom wrote:Only 100{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} on pattern spares alexa? So if you pay £4 for a pump you charge £8. Bargain 😈
Add the $30 taxes and freight we cop down under
Re: Who charges what for what ??
I find myself in very much the same situation as Pat-uk
Hpt bearings (Not WMA) £95 (inc new drum support)
Hpt brushes £32 (new carbons fitted in holders if OK)
Most other brushes £40 – £42 (Bosch 5X12.5X43 soldered to holders)
Pumps £43 – £45 (pump not body)
Fan oven elements £40 – £42
door seals about £36 – £40Generally I price a job by deciding how much I want in my pocket after costs (fuel etc) then I just add on the cost (to me) of the part. This has always worked OK for me. If the customers wants a cost break down then I price the spare at what i know they will pay in the shops, making my labour charge appear smaller.
I suspect that Pats customers are very happy with his service and he might not even have to advertise, because he gets lots of recommendations from his existing customers. The fact that he ‘feels guilty’ shows that he is sensitive to his customers feelings toward him and wants them to feel that they have a good deal, and have not been ripped off. I also suspect that he falls over himself to make sure the job is done well and will last.
Sorry if this sounds as if i am psycho-analysing you Pat but IMO the white goods repair industry would have a much better reputation if there were a lot more engineers like you around, as it has suffered much from the much publicised rip of artists on certain TV programs.
The fact that our prices are cheaper than some of the other guys posting on this thread does’nt mean that they are necessarily charging too much as obviously those that employ engineers and / or have shops incur much higher overheads than the likes of myself (man & van). But i would be cautious about raising your prices too much just for the hell of it. You might find that in time this will backfire on you. Many times I have had people tell me (even customers!!) i am not charging enough but i have always resisted price increase for the sake of it. The benefit of happy customers are that they will invite you back and this leads to stability in your business.
I have been a self employed independant for 22 years and for the last 17 years I have not done any advertising at all. Hardly a week goes by without gaining extra customers through recomendation so establishing a mutual trust does increase your profits.
Much of this depends upon what you want from life. Myself I want enough to pay all my bills, have enough spare to live comfortably without counting the pennies, run a nice car, take my family on holiday each year and provide for my retirement. If my pricing structure does this for me without me having to flog myself to death then i am happy.
Alexa asks:- Should a sole trader undercut the rate of a Company employing many engineers considering all the factors
In reality sole traders are no threat to bigger firms who charge more. Go to any town and you will find both happily co-existing, Some people prefer big firms – others like the “here’s my washerman” first name approach. Thanks to to cr*p that the manufactures are turning out there is plenty of work to go round!
All this is of course IMHO.
Regards Andy
PS. The loose Bosch carbons ( 5 X 12.5 X 43 ) are brilliant. They will fit most of the motors using the variations of black holders. SEME do them for £2.30 +VAT { W1-18121/A }. Carefully pull the tag off the wire retaining its full length. After soldering the lead to the holder i trim them FLAT to leave about 4mm protruding with full spring compression. I usually do a heap in my workshop and then before fitting them i file the angle to suite the motor. A great little earner @ £42. For the wider holders Philips etc, i use SEME W1-18105/A @ £4.75 +VAT per pair carbons + holders.
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