Fool proof pricing?

[TFGplumbing]

Hiya guys

As a new business I'am doing okay with pricing at the moment(no major cock ups) but it takes me hours, obviously its important to give an accurate prices so that you get the job, But I'am finding that I never seem to be able to accurately give a price for materials I will use ie pipe & fittings there are always seems to be extenuating circumstances where the job won got exactly as originally planned and I end up using more things; I cant spend hours at someones house counting out exactly how many 15mm elbow i'am going to use.. I can only get a rough idea.

Clearly the problem is:

a) I don't want to over estimate materials and lose a job.
b) Under estimate materials & eat into profits.
c) I don't want to put "materials as required" on quote as its misleading; and potentially may cause conflict at bill time.

I normally put on quotes "prices do not include unforeseen variations" or some such.

Clearly I'am still learning business skills which is fine and expected at this early stage.

Any tips from the pros?

 

[cr0ft]

I don't spend very much time on quotes at all to be honest. For large jobs guestimate the price of materials and add a couple of hundred on to cover anything unexpected. After you have done a few bathrooms you will soon start to know roughly what you are spending.

For small jobs, do a similar thing, always add on a decent contingency.

A job where you can't do that isn't a job worth doing imo.

 

[hammers4spanner]

Classify large job crOft ?

I put a £4000 buffer on a job i have just done and materials cost motored right into that !!

 

[Destroyer2813]

As mentioned I don't try and work out fittings down to the last tee or elbow will drive you mad I work out roughly how much I did then add a percentage on

 

[Leo21]

The more you do the more idea you'll get. I take an educated guess at the materials, then add £50 or £100. That's tube and fittings only. There's always stuff you can't account for. As you go along you'll gather more stock, so if you do cock up you've got some materials in the bank. Swings and roundabouts, but on the whole your up.

 

[erpkid]

We quote labour - fixed plus materials at cost. We give an estimate of materials and load this heavily. At then end of the job the customer gets a pleasant surprise. The other advantage is that a customer being charged less does not want a breakdown elbow by elbow. Also it depends on the job for example going from vented to sealed you should always point out that this may reveal weaknesses in pipe work especially under screed. We use a spreadsheet and walk our way through the job if it is bigger and always go overboard and round up on labour. It is worth doing a mini review after the first few if you don't make what you need and ask where the problem lays. With us it is tiling as this always takes longer than expected. Eventually you will get it right every time just as your bus pass pops through the letterbox

 

[Ermintrude]

No such thing as fool proof. I don't do sanitary because too many horrible bits and variables. Just to heating and hw systems.

Domestic stuff is pretty simple once you have done a few , u know what jobs worth roughly before u open car door to price job...... Just need to make it look like your working it out for custards sake . But if you hit unforeseen problems ...... Start the meter rolling.

Tendering is a bit more involved , some times tender drawings end up being construction .... Rarely tho so u have the opertunity to re measure and agree variations. ( not that you will get paid for them !!!!) also programme changes , builders works and other trades can cause you day works. ( very dirty word)

 

[hammers4spanner]

Heating can bite your urse ermingtrude bigger pumps and valves aint cheap

 

[TFGplumbing]

I mainly do heating myself, and i prefer heating generally. Nothing like the smell of a freshly installed radiator getting bouncing for the first time.

 

[cr0ft]

Classify large job crOft ?

I put a £4000 buffer on a job i have just done and materials cost motored right into that !!

I'm assuming he is asking about a domestic quote so I guess a bathroom installation or cental heating install.

 

[cr0ft]

I also have all of my jobs, no matter how small, setup on my accounts package. I also have all my stock item purchase prices on there. I book all stock in the van out to each job so at the end I can see exactly how much profit I have made on the job. It took a bit of time to set up but it really helps you to understand your business better.

I realised very quickly that I needed to up my prices, it was quite sobering really!

 

[Leo21]

I also have all of my jobs, no matter how small, setup on my accounts package. I also have all my stock item purchase prices on there. I book all stock in the van out to each job so at the end I can see exactly how much profit I have made on the job. It took a bit of time to set up but it really helps you to understand your business better.

I realised very quickly that I needed to up my prices, it was quite sobering really!

Blimey, that is organised. It must take you ages?

 

[plumber0808]

I work out my labour and add a sum on depending on how big the job is, the more you do the easier it is. I keep my quotes organised so its easy to look back if I get a similar job allowing me to price it very quickly knowing it will be about right.

on large jobs I would spend a bit of time working out the expensive parts, you don't want to get them wrong.

 

[cr0ft]

I also have all of my jobs, no matter how small, setup on my accounts package. I also have all my stock item purchase prices on there. I book all stock in the van out to each job so at the end I can see exactly how much profit I have made on the job. It took a bit of time to set up but it really helps you to understand your business better.

I realised very quickly that I needed to up my prices, it was quite sobering really!

It took a good while to setup. I have over 100 stock lines I monitor. One big plus is it keeps track of the cheapest place to buy each order. Oh and by setting minimum stock levels for each line I can do all my stock ordering once a quarter really. Saves hugely on time in the merchant and now I only keep stock of items I use.

has really improved my profit to be honest to the tune of thousands of pounds a year. Its amazing how much all merchants have a few cheap lines (usually different between suppliers) and the rest are cheaper elsewhere.

 

[Ermintrude]

It took a good while to setup. I have over 100 stock lines I monitor. One big plus is it keeps track of the cheapest place to buy each order. Oh and by setting minimum stock levels for each line I can do all my stock ordering once a quarter really. Saves hugely on time in the merchant and now I only keep stock of items I use.

has really improved my profit to be honest to the tune of thousands of pounds a year. Its amazing how much all merchants have a few cheap lines (usually different between suppliers) and the rest are cheaper elsewhere.

U can do this on spread sheet. Send it monthly to suppliers (obviously blank) then email back with prices you input and at then cross match or set a filter for lowest price. Specify how many of each fitting u hold so you get best price .

 

[JAH HEATING]

I went out today to price a 3 rad ch system.

its obviously going to need, boiler, rads, stat, valves. I put 20 per cent on these.

its going to need couple 22, maybe a bundle an halfof 15.

im putting it down for 2 bundles, an a bundle of 22.

sundries £100 includes flux, screws etc.

£100 fittings.

 

[cr0ft]

U can do this on spread sheet. Send it monthly to suppliers (obviously blank) then email back with prices you input and at then cross match or set a filter for lowest price. Specify how many of each fitting u hold so you get best price .

Yeah, there's a few ways to skin the cat. As long as you have some kind of system that's the important bit.

 

[WaterTight]

We can't know, of course - but I'd guess that 90% of the jobs you win you would still have won if your price was 15-20% higher (small or large job) and 90% of the jobs you lose you would still have lost had your price been 15-20% lower. Therefore, don't obsess about accuracy : Include a buffer. The difference will negate ££ amount lost on jobs you didn't win and save you working for people who are penny pinching. It will also build you a client base of people who are happy to pay a decent price for a decent job.

 

[WaterTight]

Or in my case an exorbitant price for a half-arsed job. But the principle is the same.