Have you raised your hourly rate

I’m trying it now, since I was a little late to the game anyways. When one of the GC’s hints to my price being too reasonable, I find myself second guessing. When one gets complacent to the norm of 2-3% inflation it gets a little difficult to swallow upping your charges during a 7% inflationary period when that’s not what your used to.
 
ramsy said:
Thank you for reminding me to adjust my tips for inflation, x 1.25 for continuous-service gratuity.
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I did that recently. Got a take out omlet and added $2 for the tip for the take out so it was a $14 omelet. Pretty sure the size was down from years ago, I was able to finish all of it, could not find the Italian sausage in it. Still I know for them the 14 does not buy what it used to, if it ever did.

Funny thing about inflation the guys knocked me off again and stole my hours as overtime. But they all rented and the extra stolen overtime was not as much as the house price increase during the interval. Even with the cigarette smoking the stealing was not fast enough.
 
I went up on hourly and flat rate pricing. The flat rate pricing was more difficult because I have had all these numbers in my head, I went up when material went up. . But that wasn't enough. So I went up again.
For years and years If I gave some one a flat rate price on a service upgrade. I was almost always in the same ball park as my competitors. I don't know if I still am, if not they'll catch up. ;)
 
I do it annually regardless of the economy. I go into "QuickBooks" and bump it up at least 5% for my material and labor.
 
EVERYTHING else has either gone up in price or stayed the same price but reduced in size or quantity.
We can't cut down on the quantity or size that we install so the price HAS to go up to match with rest of other businesses.
 
My software shows what I paid previously for material, and a lot of it has gone up 50-100%. Very little has returned to previous prices. Don’t know where they got the much lower inflation rates they quote.
 
I got a raise last Sept, then another raise in Feb, albeit small whatever.
I am old, slow, and grumpy, not the ideal employee.
However I do have the ability to show up 5 min early, not upset customers, and work with a female apprentice without causing a lawsuit, which apparently is a in-demand skill set these days?
The weird thing is bossman has not raised the rates.
So I am not sure where the money is coming from?
But he did just pick up a huge GC so I aint asking questions.
I suspect he is putting the increase on material.
 
hillbilly1 said:
My software shows what I paid previously for material, and a lot of it has gone up 50-100%. Very little has returned to previous prices. Don’t know where they got the much lower inflation rates they quote.
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Being that most of my work is the same thing year after year, I’m able to track over a decade of pricing averages. Right now, material prices are about 140% higher than they were in 2019. But throughout 2021 and the first half of 2022, they were 180% higher. Some jobs were 200% higher than 2019. Labor is up 128% from 2019. I expect that to climb another 2-3% by the end of this year. We also had to raise per diem rates by 130%. The highest expense increase last year was probably vehicles and fuel.


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I am trying the new increase also in July, I have a feeling, people are going to slow down on improving or altar paying someone else’s for improving. I want to increase it but also I know some jobs will be lost just cause people wallets are tight and an extra 15$ bucks an hour adds up.
Will see in 2 years if I am still around lol
 
AC\DC said:
I am trying the new increase also in July, I have a feeling, people are going to slow down on improving or altar paying someone else’s for improving. I want to increase it but also I know some jobs will be lost just cause people wallets are tight and an extra 15$ bucks an hour adds up.
Will see in 2 years if I am still around lol
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I think there are plenty of people with money out there. And I also think good luck finding someone else, let alone someone who is cheaper.
 
I dropped doing any residential because I have more than enough commercial and light industrial to do. Get calls all the time from people wanting residential done. The resi guys I’ve been sending them to, are too busy too. I’m booked until January 2024, and not taking any new customers.
 
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