Pricing a plumbing job
For being a successful plumbing firm, you must have appropriate knowledge of the different costs that are involved. In case, you don’t have this knowledge, you might undercharge or overcharge. Undercharging might attract customers but you are not maximizing your revenues or profits and your clients are taking advantage of you. But if you are overcharging, you are sincerely putting yourself at risk of losing your clients to your competitors. Your reputation might be damaged your sales would get affected too. So, a harmonious equilibrium is to be settled upon.
First of all, you need to understand that which parts you require to complete a plumbing job or task. You need to take into account all the materials from pipes to toilets to taps to showers to bathtubs. Don’t leave out anything. Only after you take into all this information, you will be able to determine your real material costs. Obviously, you won’t tell this to your client directly. You need to keep a profit margin that prevails in the industry so that you don’t charge too high.
Next, you are to measure the distance you had to cover to get the pipes or other parts. If you had to replace or repair any part, add the time cost for that- it would account for as labor cost discussed later. You are to be aware of the exact prices of all the items you purchase. Usually, once your company goodwill has established, your relationships with your suppliers becomes more easily going and cooperative. You might even get bulk buying discounts, which would reduce your costs. They would offer you competitive prices and good quality that would maintain your company’s reputation as well as theirs. Now, assuming you have all your materials, you are to add up your costs and in the total you get, add a further ten dollars for the small items you might have used such as the nuts, bolts, screws and for the tools you used on your part. This would be the final cost of your material expenses on your plumbing job.
Now coming over to the labor cost, you are to round the hours you spent for the completion of the job. This sum of hours is to include the time you spent on your visits to your supplier of parts, as this was not something you did for your personal requirement but for the client. You could actually give this explanation if argued upon this issue. Now determine your hourly rate which on average is more or less sixteen dollars. But in case, your state has a higher or lower average, go with it as it is always better to choose the safe route. In case, you are a newbie and you have no idea, then you probably ring your colleagues or any other plumbing company to get an estimate.
To reach your final cost, you are to multiply your previously calculated hours with your hourly rate. This would give you your labor cost total. After adding the material cost total to it, you would get your final total cost. Your profit margin would be around at least 8 percent- not necessarily true for all areas, so get an idea from your company’s objective. Here you are with the final price you are to charge your client with, along with a handsome chunk of profits for your company.
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Article Source: Messaggiamo.Com
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