Prices/Rates.

[doug boardley]

me too.

 

[mikethetile]

my rates have just gone up again for the new year

mine are under constant review, I use variable pricing to regulate the amount of work coming in, if I win more than 1 in 2 or 3 my rate goes up , if I win less than 1in 5 my rate comes down to keep it around 1 in 3 or 4

its a bit more complicated than that , as my costs rise so does my breakeven, the more days you work the lower your breakeven is per day , the less days you work the less days there are to cover your costs so your breakeven per day goes up, thats on fixed costs, your variable costs rise the more work you do and drop the less work you do

so I just keep a tab on what its costing me , what im earning and what profit there is in each job, i then use these figures to price the next job and so on

 

[chris.tiling]

I do the same as Brian J, Dave etc, but have recently started to up the day rate on certain jobs. I have done a couple of weeks work for my cousin recently, so need to recoup the lower earnings from that job! I have increased the day rate by about £15 for the first time in two years.

 

[mikethetile]

I was chatting to another tradesmen today and he proudly announced that he was still charging at pre recession prices and couldnt keep up with demand, I laughed and told him he was kidding himself and no wonder he had too much work

if he worked for an organisation over the last 3 years he would have had about 10% increase in his wages due to cost of living rises, he has swallowed all the increases on insurance, fuel etc and so is effectively taking a pay cut every year

he walked off in deep thought LOL

 

[DHTiling]

I bet he did..:lol: