what to charge for material

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jerrysounds

jerrysounds

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San Diego
This is my first post on this site so please be gentle. I have a queston about what % you guys are charging on material. At fist I was charging $68.50 an hour and giving the material to the client at cost, but at that price I lose money. It is very competitive here in San Diego so, I want to be fear. What do you guys say. Alsow, how about the hourly rate of 68.50? I have been able to meet my needs at this rate but I think it is time to ask for more. Thanks for your replys.
 
charge what the market will bear.

$68.50/hour sounds cheap for service work, and a bit pricey for long term work.

you are losing money if you charge what you pay for parts. you cover the cost of the money you lay out up front, and get paid for later. you cover the costs of warranty work. you need to cover that in the price of the parts. it costs you money to go to home depot and buy the parts in the first place, since your time to go do so is not free.
 
petersonra said:
charge what the market will bear.

$68.50/hour sounds cheap for service work, and a bit pricey for long term work.

you are losing money if you charge what you pay for parts. you cover the cost of the money you lay out up front, and get paid for later. you cover the costs of warranty work. you need to cover that in the price of the parts. it costs you money to go to home depot and buy the parts in the first place, since your time to go do so is not free.
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Not to mention that if you damage materials (nicking a wire for instance) in the course of installation, that's on you to replace it...
 
yes, I can see the loss in the 0% on material. What do you think would be a fair number? I have herd numbers like 20% .This is not for service.This is for remod. Service I charge $47.5o service + 137hr, I give them 0% on parts. I get 99% of jobs with that. I use flat rate on new construction jobs (witch I like much better).Thanks again
 
We mark-up small materials at least 100% (double) and larger stuff >$100 30-40%. A good way to do it is to use a pricebook or service that has Col. I, II, III pricing because you are almost sure never to sell too cheap and you don't have to keep track of the price of everything you buy. www.electricalreference.com is one that I use and it's free to boot.

$68/hr sounds too cheap for S.D. (we're getting $85 in Big Bear) but I know you are competing with a lot of illegal competition.
 
get away from T&M completely. You will never win competing on T&M...you already see that

I use flat rate on new construction jobs (witch I like much better)
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you have quite a few companies in your area who are flat rate, compete with them, not the guy working for wages...
 
When I first went into business a close friend that worked for a successful contractor told me. Fire the men and sell the material, more profit and less headaches.
 
bkludecke said:
We mark-up small materials at least 100%(double) and larger stuff >$100 30-40%. A good way to do it is to use a pricebook or service that has Col. I, II, III pricing because you are almost sure never to sell too cheap and you don't have to keep track of the price of everything you buy. www.electricalreference.com is one that I use and it's free to boot.
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I do this and more on alot of items ( $7.00 receptacle, 1/2" conduit $1 a foot and $10.00 minumim) my pricing is all over the place because of not knowing what it cost me when I go to invoice it... I just downloaded the Electrical Refrence and have been trying to find something like that for awhile, Thanks...Haven't quite figured it out..It says $68.?? for 1/2 inch conduit??didn't spend alot of time on there and waiting for confirmation e-mail, is it "user friendly" ? Thanks
 
Yup. Use a pricing publication. If you have to back up your pricing, it's right there in black and white. I use Trade Service or Tra-Ser electronic updates.
Also, Trade Service prices are good levels for change orders.
 
bkludecke said:
A good way to do it is to use a pricebook or service that has Col. I, II, III pricing because you are almost sure never to sell too cheap and you don't have to keep track of the price of everything you buy. www.electricalreference.com is one that I use and it's free to boot.
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Hi, I got the e-mail confirmation and looked up pricing on a few items.. I see where to change the pricing from list, I, II, II and resale. It says 1/2" EMT and shows a discription then shows $65.92 for Col 3 pricing but I don't know what it represents. Is the $65.92 for a single 1/2" x 10' stick of conduit or is it including labor to install it? or ?? Thanks
 
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