I also do not normally negotiate.
I get $75/hour at a 2 hour minimum service rate. If someone has a bit of work or if they are just more comfortable with it, I give them a lump sum price. That price is always higher than if it was T & M (because I have to cover my arse).
I just got this Kennel job for a little less than $8,000.00
I wasn't the lowest price. But they liked my thoroughness in my proposal, the extras I added (like Surge Protection) and the fact that I went back a second time to MAKE SURE I wasn't missing anything. Oh, and also that the BBB had nothing on me.
I can probably do this job in about 50 man hours and parts/permit costing >$1,000.00...
That's a good profit isin't it?
That's $140.00 per hour if it takes 50 hours. I bet I could do it alone in 40 if I really get on it!
Any negotiation always works out in my favor. They sign a contract with me and everything is then legal.
The people I have problems with are GC's (What a surprise)!
I've been fortunate to have a steady one who is just cool as anything (because he can charge extra if I do) and I do custom homes usually as a PRIME not a sub. I can charge more per sq. ft. because there is no builder marking my costs up.
The "bread & butter" jobs are the RAC's and the houses, but I'll tell ya, man, the service calls are runnin' neck & neck with the bread and butter stuff!
The Kennel is considered a service call in my mind (though it really isin't) because it is above and beyond our regular work.
I average about 70 calls a month from a particular yellow pages market and it costs me $245.00/month. It is a good position to be in. I can afford to pick and choose because I currently am not maned-up enough to do them all and I really don't care at this point. You wouldn't get them all anyway... but, what I mean is that I can just about quote whatever price I want not really caring if I get it or not because we are already busy enough.
I charge $75/hr. and that's that. That is the minimum. Quoted jobs I get more.
I can't afford to give away anything. Between taxes, insurance(s), gas, and other overhead, I can't afford to give away anything I'm already counting on.
This is a great trade to be self employed in. But you got to find your niche. And you've GOT TO deliver quality and on time. If you do, people are willing to pay for it. I've been doing this stuff since '81...I hope I've got my act together by now!
But, ya know, you hit some people harder than others and some people you do it at cost. What comes around really does go around.
I have a wife and 4 kids. 2 will soon be college bound. Wifey stays at home. That's all the motivation I need right there. To give anything away is to take it from my family. Ya know what I mean?
My vehicles (4) are all paid for and things are going alright.
The only negotiating I do is how much they'll give me up front and when they want it done by and that they KNOW and have signed that I get the remainder due UPON COMPLETION.
I wouldn't think twice about taking someone to court if I had to. And I have had to and they always lose because I have what I need in writing --- ALWAYS. It usually doesn't get to court because those who play games learn quickly that I'm not playing.
And, to be honest, usually there are no problems like that. Probably because I dot every "i" and cross every "t".
Anyway, there's my dime's worth.
:~)