Invoicing Labor/Material

[nizak]

Recently a G/C who I have done work for questioned me about an invoice he received from another E.C. that was used by their firm. I looked it over and found that his price overall didn't seem out of line but his material cost was extremely high and his labor seemed unreasonably cheap. They had compared it to similiar work I had done in the past and were using my invoice as a kind of a benchmark. Is it common to "lowball" the labor and "pad" the material? I have always marked up my material a fair amount and charged my labor at a set hourly rate.To someone not familiar with mat costs, it makes me look like I'm raping them on labor. Any thoughts.

 

[growler]

To someone not familiar with mat costs, it makes me look like I'm raping them on labor. Any thoughts.

That could be the reason, just trying to make their labor look cheap.

If they are getting a draw based on materials delivered that could be it. Get as much as possible as early as possible.

 

[480sparky]

How do you think some places make statements like "Any new window installed in your house for only $69!"?

I could just a easily say my labor rate is $15/hour, and simply make it up on mark-up on material.

Truth is, neither number is meaningful unless countered with the other.

 

[jbelectric777]

He is making you look bad ! BUT, people arent stupid either I'm sure they know your the guy with character and bills it the right way. All a guy has to do is walk through the aisles at one of those home improvement warehouses. (dont wanna mention any names)

 

[cadpoint]

He is making you look bad ! BUT, people arent stupid either I'm sure they know your the guy with character and bills it the right way. All a guy has to do is walk through the aisles at one of those home improvement warehouses. (dont wanna mention any names)

Were talking about a GC comparing pricing, his or theirs will never look like yours (period) it's been said here many times that your price is not their price.

The Big Box stores have nothing in the equation. Or what ever your impling!

Frankly I'd be interested in someone elses "Price", but for me to compare mine against theirs; no, there is no match. Nor any magic number, if there was certain people wouldn't be so boostful as to what they have as opposed to what was on the "Bill"!

 

[jaylectricity]

Personally I give a simple invoice to my customers and instead of putting down Materials: $xx.xx Labor $xx.xx and then total it up, I put Materials:$xx.xx and then put a total.

The point being, the stuff besides the materials isn't all labor (because then they start to compare that to what they make per hour at their job). It's just a courtesy to give them an idea of how much of the bill went for materials.

Maybe I should start itemizing:

Materials: $xxx.xx
Shopping for materials: $xxx.xx
Labor: $xxx.xx
Permit: $xxx.xx
Dilly-dallying around at the Bldg Dept: $xx.xx
Insurance: $x.xx
Fixing problem so you won't call my insurance: $xxx.xx
Business cards: $0.0x
New business cards because I screwed up these ones $0.xx

 

[Volta]

Personally I give a simple invoice to my customers and instead of putting down Materials: $xx.xx Labor $xx.xx and then total it up, I put Materials:$xx.xx and then put a total.

The point being, the stuff besides the materials isn't all labor (because then they start to compare that to what they make per hour at their job). It's just a courtesy to give them an idea of how much of the bill went for materials.

Maybe I should start itemizing:

Materials: $xxx.xx
Shopping for materials: $xxx.xx
Labor: $xxx.xx
Permit: $xxx.xx
Dilly-dallying around at the Bldg Dept: $xx.xx
Insurance: $x.xx
Fixing problem so you won't call my insurance: $xxx.xx
Business cards: $0.0x
New business cards because I screwed up these ones $0.xx

I like it! Don't forget to charge for your time here too!
Hours Of Listening To Fellows On Random Unexpected Mistakes, or some acronym.
It's a form of continuing education .
:grin:

 

[mivey]

Personally I give a simple invoice to my customers and instead of putting down Materials: $xx.xx Labor $xx.xx and then total it up, I put Materials:$xx.xx and then put a total.

The point being, the stuff besides the materials isn't all labor (because then they start to compare that to what they make per hour at their job). It's just a courtesy to give them an idea of how much of the bill went for materials.

Maybe I should start itemizing:

Materials: $xxx.xx
Shopping for materials: $xxx.xx
Labor: $xxx.xx
Permit: $xxx.xx
Dilly-dallying around at the Bldg Dept: $xx.xx
Insurance: $x.xx
Fixing problem so you won't call my insurance: $xxx.xx
Business cards: $0.0x
New business cards because I screwed up these ones $0.xx

Listening to customer tell me how other contractors do it: $xxx.xx

 

[Awg-Dawg]

Hours Of Listening To Fellows On Random Unexpected Mistakes, or some acronym. .
:grin:

That's funny........:grin:

 

[satcom]

Personally I give a simple invoice to my customers and instead of putting down Materials: $xx.xx Labor $xx.xx and then total it up, I put Materials:$xx.xx and then put a total.

The point being, the stuff besides the materials isn't all labor (because then they start to compare that to what they make per hour at their job). It's just a courtesy to give them an idea of how much of the bill went for materials.

Maybe I should start itemizing:

You are an electrical contractor, with more then just labor, and material costs you also have overhead and operating expenses, he may have you confused with one of his day labor guys.
When your contracting work, you should not list your hours or material, you are better off to just present a bottom line price for the entire project.

 

[mivey]

That's funny........:grin:

I missed the acronym. I would like to see the customers face when you itemize a "surfing" fee. :grin:

 

[jmellc]

One friend of mine rolled over a job to me he'd been invited to bid on. Told me he always bid high on materials for this customer and low on labor as this guy would always complain and want "discounts". Said he could tell him "well, materials for this are high, nothing I can do about that". I tried bidding it that way, but I'm not a good manipulator, so I just did it my way, being straight with what I thought labor would run and doing materials with my standard markup. I still didn't get the job. He was another one playing all bidders against the lower, then repeating the process with the next lower one. I don't play that game.