Hourly rate

[Farmfly]

hey y’all, not sure if people are comfortable talking about what they charge. I live in North Carolina. I’m trying to estimate an hourly rate of $100 an hour. From what I understand it is not far from the average in the area. I’m getting some customers who think that I am overcharging them. Just wondering what your thoughts are on that rate? Just started my business six months ago.

 

[ptonsparky]

Your hourly rate is a good way to sort out customers you don't need.

 

[petersonra]

hey y’all, not sure if people are comfortable talking about what they charge. I live in North Carolina. I’m trying to estimate an hourly rate of $100 an hour. From what I understand it is not far from the average in the area. I’m getting some customers who think that I am overcharging them. Just wondering what your thoughts are on that rate? Just started my business six months ago.

when you go to Walmart to buy groceries do you think they are overcharging you? If so, you go somewhere else and usually get charged more.

same thing with your rates. on the whole, if you are charging too much your hit rate will start to go down. but really most business comes from repeat customers so the important thing is once you get a customer is to make sure they stay one.

 

[retirede]

An old boy told me once “You know you found the sweet spot when they complain a bit, but still hire you!”

 

[steve66]

Also depends on if you only bill for time on site, or if you also bill travel time and expense, or a service call fee.

If you only bill for time on site, make sure you explain that to anyone that complains.

 

[VirutalElectrician]

Just don't bill like an idiot.

For example...I had to have a company come out and do a repair for a piece of equipment I couldn't bring convieniently to their shop. They told me upfront what their charges were.

One of the things they charged me was $5/mile for transportation. I was 12 miles from their shop, so ok, whatever.

So the guy comes on sight. We start chatting. I was his first stop for the day. His next stop is 10 miles further away than me. I was charged $5/mile from his shop, so $60. I bet the next guy got nailed for the whole distance again, 22 miles or $110, after I had already paid to get him halfway there. So pretty sure this place was double/triple/quadruple, etc billing for their mileage throughout the day.

$360 bill. $40 in parts, $60 in mileage, and $260 in labor for under an hour.

Making a living is great, but don't overtly fleece your customers.

 

[Knuckle Dragger]

hey y’all, not sure if people are comfortable talking about what they charge. I live in North Carolina. I’m trying to estimate an hourly rate of $100 an hour. From what I understand it is not far from the average in the area. I’m getting some customers who think that I am overcharging them. Just wondering what your thoughts are on that rate? Just started my business six months ago.

I understand different regions of the country charge accordingly.
I have been charging $120.00 per licensed guy and $180.00 for licensed and helper and I believe that I am still below the higher rates.

 

[Amps]

Just don't bill like an idiot.

For example...I had to have a company come out and do a repair for a piece of equipment I couldn't bring convieniently to their shop. They told me upfront what their charges were.

One of the things they charged me was $5/mile for transportation. I was 12 miles from their shop, so ok, whatever.

So the guy comes on sight. We start chatting. I was his first stop for the day. His next stop is 10 miles further away than me. I was charged $5/mile from his shop, so $60. I bet the next guy got nailed for the whole distance again, 22 miles or $110, after I had already paid to get him halfway there. So pretty sure this place was double/triple/quadruple, etc billing for their mileage throughout the day.

$360 bill. $40 in parts, $60 in mileage, and $260 in labor for under an hour.

Making a living is great, but don't overtly fleece your customers.

Decades ago I worked as a field service tech for a company that sent me all over the US. Many times, I would fly to a customer in Montana, then fly to another in California, then on to one in Michigan. The company billed each customer as if flew to them directly from NJ.

 

[ramsy]

The company billed each customer as if flew to them directly from NJ.

For tax accounting, that how IRS instructions require expensing mileage.
As long as a written record is provided, deductible miles are reported from the same origin, or place of business, to each stop. Not stop to stop.

Remember tax rules are written by the rich for themselves. W2 employees are tax slaves, its unfair by design.

 

[readydave8]

I worked way too cheap for many years, but never cheap enough that no-one complained