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#174960 - 02/18/08 01:22 PM Flat rate pricing  
Gregtaylor  Offline
Member
Joined: Mar 2005
Posts: 212
Boise, Idaho, USA
Do any of you guys use flat rate pricing for residential remodeling, old work cut-in etc? If so, how did you go about determining your prices. I don't want to hijack proprietery info from anyone. I'm just looking for a way to start developing the idea for my employer. The NECA manual of labor seems way out in left field where these kind of small projects are concerned. Any ideas would be appreciated.


Business, Office, Estimating, Legal:

#174965 - 02/18/08 04:47 PM Re: Flat rate pricing [Re: Gregtaylor]  
dougwells  Offline


Member
Joined: May 2003
Posts: 1,137
kamloops BC Canada
The First thing in my opinion is you have to work out your break even costs. so that you know have much to charge for the labour portion

Try out the calculators post here

http://www.electrical-contractor.ne...s&topic=0&Search=true#Post166591


#175043 - 02/20/08 02:42 PM Re: Flat rate pricing [Re: dougwells]  
neutron  Offline
Junior Member
Joined: Jun 2005
Posts: 23
longisland NY
I am also looking into flat rate pricing. It seems that there are a lot of programs that you can buy but are quite expensive. Does anyone use a program that is worth the money or should we just build our own system?


#175104 - 02/22/08 06:41 PM Re: Flat rate pricing [Re: neutron]  
PE&Master  Offline
Member
Joined: Feb 2006
Posts: 138
TX, USA
I kind of built my own. Takes a lot of time and is good filler work this time of year. A larger shop would probably need (and could better afford) a store bought one.

No matter what, u'll need a guide to provide consistant pricing to the customer. You may not remember what you charged them for installing 2 ballasts and a ceiling fan last year but they will.

With T&M, you will never be able to write down all the parts you used, wirenuts, 6x32 screws, box holders etc that don't cost a lot individually but all add up. Flat rate works well for resi work but I haven't been able to use it much for commercial. There are too many variables to commercial.

There's no reason why they cost so much, I suppose some people pay that. I'm considering putting mine out there as a go-by model to work with. The simpler, the better.


#175124 - 02/23/08 12:11 AM Re: Flat rate pricing [Re: PE&Master]  
Tiger  Offline
Member
Joined: May 2005
Posts: 706
Crystal Lake, IL USA
I created my own also. After you figure your cost per hour to be in business (breakeven), add your profit goal. Be sure your salary and benefits are included.

I figure the time and materials in Excel and use that for tasks and pricing. The key is to constantly track and adjust prices as you track your jobs. You'll have to do that with any software you buy also. If you have experience estimating, put together prices as you'd estimate the work. If you ever lose money using your prices, adjust them quickly so you won't continue losing money.

Dave


#175179 - 02/24/08 03:15 AM Re: Flat rate pricing [Re: dougwells]  
macmikeman  Offline
Member
Joined: Jul 2002
Posts: 717
Honolulu, Hawaii
Originally Posted by dougwells
The First thing in my opinion is you have to work out your break even costs. so that you know have much to charge for the labour portion

Try out the calculators post here

http://www.electrical-contractor.ne...s&topic=0&Search=true#Post166591


Or for a simple one for one man gang operations- Freelance something or other calculator


#175180 - 02/24/08 03:34 AM Re: Flat rate pricing [Re: macmikeman]  
dougwells  Offline


Member
Joined: May 2003
Posts: 1,137
kamloops BC Canada
thanks gonna have to check that one out tommorow smile


#175196 - 02/24/08 05:37 PM Re: Flat rate pricing [Re: dougwells]  
dougwells  Offline


Member
Joined: May 2003
Posts: 1,137
kamloops BC Canada
Hummm This is going to be a bit to figure out... I have an employee that does Satellite installs for us and we supply all the materials and shop supplies,,, wages ... labor burden. plus I usually charge flat rate and dont mark up materials there included in the tasks might take a it to break some of this out.
but i do have 4 years of data to work with. darn


#175213 - 02/25/08 02:02 AM Re: Flat rate pricing [Re: dougwells]  
macmikeman  Offline
Member
Joined: Jul 2002
Posts: 717
Honolulu, Hawaii
Doug, the lightweight calculator I linked to here yesterday, I just don't think it fits once you have employee's. Even for one man show it is not really detailed, but at least it might help in education for those who think going off the diving board at $ 60 bucks an hour is the path to riches and retirement. In the situation of employee's you need to be extra careful of costs and it requires a greater breakout. The plumbers calculator would be a better way to go, or the other one I e-mailed to you last week.


#175214 - 02/25/08 02:05 AM Re: Flat rate pricing [Re: macmikeman]  
dougwells  Offline


Member
Joined: May 2003
Posts: 1,137
kamloops BC Canada
Thanks


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