Not a question of how much you charge but a question on how you charge.

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Ok so as a contractor you figure out your hourly charge by calculating your salary plus you overhead divided by the amount of hours you plan on working in a year. So say you do that and it comes up to $95.00 a hour. Is this the same rate you guys charge for anything from a hour long service call to a job lasting a month? OR for the bigger jobs is your hourly wage adjusted?
 

mkgrady

Senior Member
Location
Massachusetts
Ok so as a contractor you figure out your hourly charge by calculating your salary plus you overhead divided by the amount of hours you plan on working in a year. So say you do that and it comes up to $95.00 a hour. Is this the same rate you guys charge for anything from a hour long service call to a job lasting a month? OR for the bigger jobs is your hourly wage adjusted?

Make sure you don't assume you will work 40 hours a week every week. If you did you should recalculate using less billable hours. For short service calls you needs to charge more and for long duration jobs you could reduce the rate some but it seems like a real guessing game as to what formula works. Of course you are better off not charging by the hour unles there is NO way to quote a fixed price.
 
I did not figure 40 hrs. I was just throwing numbers out there. You have to know your hourly rate to estimate a flat rate job anyway. I give flat rate estimates. Lets not turn it into that kinda thread. I was more or less curious if you guys charged the same hourly rate for a service call as you do a longer job. Also if you do adjust how do you go about figuring out which way to go.
 

svh19044

Senior Member
Location
Philly Suburbs
You have a very simplified method for calculating hourly charges. I don't know of any business who calculates on those few parameters.

While this one still doesn't cover all aspects, it is considerably more accurate and covers a lot of variables (such as WORKING hours).

http://www.masterplumbers.com/utilities/costcalc/

The jobs are adjusted for the amount of billable hours. Why would you raise/lower cost on your hourly based estimates? If you are working (billable) 100 hours at one job, or 1 hour at another, what difference does it make?
 
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Ok guess you cant edit your own post. All I really want to know is if you guys charge the same hourly for a service call as you do for a job lasting a few days or months. If you do how do you do it.
 

svh19044

Senior Member
Location
Philly Suburbs
Ok guess you cant edit your own post. All I really want to know is if you guys charge the same hourly for a service call as you do for a job lasting a few days or months. If you do how do you do it.

Yes, same hourly rate of $abe within the flat rate.

If I go on a service call, and it lasts 1 hour, I charge 1 hour x $abe + material.

If I estimate a job to take 10 man hours, it is 10hours x $abe + material

If I estimate a job to take 100 man hours, it is 100hours x $abe + material

Perhaps your question isn't clear, is that what you are asking? Also, certain emergency calls are higher hourly rates than the fixed price.
 
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JES2727

Senior Member
Location
NJ
I charge the full hourly rate for the first half-hour of a service call, and then the same rate for each additional hour.
When I estimate a job of some duration I still use the same rate, but after it's all totaled I might knock off 10 points or so if I feel I need to be more competitive.
 

readydave8

re member
Location
Clarkesville, Georgia
Occupation
electrician
A 1 hour service call could take 2 hours easily with mobilization, drive time, etc. Not to mention the possibility of unproductive time before and after, for example if I promise to be be there at 9 I have to find something productive to do until then but must be something I can stop doing. If it's near quitting time when I finish same kind of situation.

So I think the per hour rate may be the same, but should be figured as hours used, not hours on the job. Or use a multiplier, if I can only bill 6 @ 1-hour calls per 8 hour day, multiply by 1.35.
 

BullsnPyrs

Senior Member
That's not a method I have ever seen used either. We adjust our hourly rates to each job because we do a lot of prevailing wage work in different states. We start with the raw cost of labor, what our burden is (burden is the cost of paying wages) and then desired profit and overhead.The formula ends up as Wages/(1-burden%)/(1-profit and overhead%) = hourly labor rate. The only number that changes is the profit and over head depending on how much we want the job.
 

sameguy

Senior Member
Location
New York
Occupation
Master Elec./JW retired
Depending on the job we could have a set price, resi. service change, service calls bill at a higher rate with trip charge (need to send "good" JW who knows what the service call is about.), big jobs get standard price.
 

MarkyMarkNC

Senior Member
Location
Raleigh NC
Something to keep in mind - a job that lasts a month is most likely going to be a bidding situation. If that is the case, you are unlikely to get it by bidding at a service rate that is based on 4 or 5 billable hours a day.
 

bradleyelectric

Senior Member
Location
forest hill, md
You have a very simplified method for calculating hourly charges. I don't know of any business who calculates on those few parameters.

While this one still doesn't cover all aspects, it is considerably more accurate and covers a lot of variables (such as WORKING hours).

http://www.masterplumbers.com/utilities/costcalc/

The jobs are adjusted for the amount of billable hours. Why would you raise/lower cost on your hourly based estimates? If you are working (billable) 100 hours at one job, or 1 hour at another, what difference does it make?

because it is a lot more overhead intensive to do 100 one hour jobs then it is to do one 100hr job.
 

Fulthrotl

~Autocorrect is My Worst Enema.~
Ok so as a contractor you figure out your hourly charge by calculating your salary plus you overhead divided by the amount of hours you plan on working in a year. So say you do that and it comes up to $95.00 a hour. Is this the same rate you guys charge for anything from a hour long service call to a job lasting a month? OR for the bigger jobs is your hourly wage adjusted?

sometimes it's easier to look and see what you netted in a month period of time... that sometimes lets you see where you are really at.

if i am charging $75 or $125 or flat rate or pull a number out of a hat, after a month of doing that, how much did i make? not gross,
but how much money did i make to spend on having a life when i'm not at work.

today, i went and looked at something i have to do tomorrow, when the building isn't alive and running.
drove over, looked at it, figured out a cool way to do it, picked up 200' of aluminum rigid... put racks on
the top of my van, tossed a tall ladder on top, and went to lunch....

after lunch, was gonna swing by another job, looked at waze on the iphone, saw how bad the traffic was in
that part of LA, decided monday would work better instead... came home, and am gonna take a half hour nap,
then go thru the van and sort stuff out for next week... that's it for today.

tomorrow, i have 100' of pipe to get in, then i can finish it up during next week.

lotta days are like that, some are really productive, some not as much.
the last 30 days running, including 3 days between christmas and new years,
when i normally don't work, brought in $7,500 or so, net.

it's not that much, but i don't have employees, tools and vehicle are paid for,
my days are pretty ok, and i keep bidding work.... i have somewhere above $120k
out to bid, and just keep plugging along.

and if i ever need a gratitude shot, it can be found northbound on santa fe ave. in
compton, just past del amo, looking at the several hundred old beat up $1,000
mini motorhomes that litter the street, with people living full time in them....
one of them will start up a generator, and three or four will plug in, taking turns
so everyone doesn't have to run their generator every day.....

most of us, if you are posting here, it means you are probably solvent enough
and stable enough to have quality problems. your house isn't 8' wide and 14'
long, and has duct tape and cardboard over the hole in the side of it, and a blue
home depot tarp over the top of it.

and i'm not one of the 800,000 chinese who work in the worlds largest factory,
where working conditions are so bad that the facility has three full time therapists
for suicide counseling, and they have placed nets around the taller buildings to
catch people who jump. the nets have saved over 30 lives so far, according to
the company, who probably want's a medal for their humanitarian efforts.

and before they hire you, you have to sign an agreement not to commit suicide.
suicide, in the company handbook, is grounds for immediate termination.

if you're posting here, take a moment to appreciate what you have, whatever it
looks like.

very few buildings in north america have nets around the top to catch the jumpers.

even in compton.
 
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