ECN Forum Forums General Topics of the Trade Business Related Discussion Variable Rates

Erik,

Are you looking at this from the perspective of Time and Materials billing or from the perspective of time required vs cost to do the job?

If I estimate that it will take 4 hrs to install a new smoke detector, I am confident that a jman can install the new cct and smoke detector in 4 hrs... therefore, he will cost me $40 per hour times 4 hrs or $160.

If I have an apprentice go out and do this job, based on his experience, he will take say 6 hrs to accomplish this same job, but his hourly cost to me is approx. $27 per hour times 6 hrs or $162.

The apprentice rate should represent his/her skill level as compared to the jman. The actual hours required for the apprentice to complete the project should work out to the same dollar cost (plus or minus) to the cost of the jman to complete the project.

Therefore, when I bid a project, I don't differentiate between apprentice and jman, I quote jman rate and realize that the apprentice will take longer. I do realize that you can bid projects with jman rate and hours and apprentice rate and hours, however, the majority of my projects are smaller so it is quicker to handle the hours the way that I do.

I was talking about the T&M rates, I have no idea what rates they use for estimated jobs.

Iwire,

Sorry, I misunderstood.

No problem.

I don't know how they came up with this method or even it's wise but they take care of me so I must support them.

Even my up front prices go up and down with situation changes . No job is the same therefore almost no job price is the same. For instance if it is slow and price is the main concern of the client then I will lower rate for the job, but never right away. "I'll need an approval from the office on that sir I am only allowed to give our price" I always give bold amounts with change for example "That job is going to be $185.15" When customer says "oh $200" I say "No $185.15"Even down to the end I want to see the cents at the end of the check. That means no rounding up or down. We have it that price for a reason. Sorry I went on and sorta changed the subject