# Labor rates



## summithomeinc (Jan 3, 2011)

I talked with a plumber the other day about pricing a small repair. He pulled out a book and said that will be xx dollars. I've had HVAC guys do the same. Are these rate books custom made by each individual company or are they standard and you just plug in whatever you need to make your profit? I don't do either of these trades but I think if I had a book that I could tell a customer it's xx dollars for this or that it would help alot. Most of my customers are realtors and property mgmt. companies so they are allways asking for set prices for specific tasks.


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## jhark123 (Aug 26, 2008)

just get a blank one, look in it and tell them what you want for the job:jester:


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## summithomeinc (Jan 3, 2011)

jhark123 said:


> just get a blank one, look in it and tell them what you want for the job:jester:


Good idea but not really the answer I was looking for...


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## deckman22 (Oct 20, 2007)

summithomeinc said:


> I talked with a plumber the other day about pricing a small repair. He pulled out a book and said that will be xx dollars. I've had HVAC guys do the same. Are these rate books custom made by each individual company or are they standard and you just plug in whatever you need to make your profit? I don't do either of these trades but I think if I had a book that I could tell a customer it's xx dollars for this or that it would help alot. Most of my customers are realtors and property mgmt. companies so they are allways asking for set prices for specific tasks.


You should have asked the plumber to see his book. Probably an estimating book he bought, not custom made.


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## angus242 (Oct 20, 2007)

I dunno if I'd ever feel comfortable with letting someone else tell me what to charge.


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## summithomeinc (Jan 3, 2011)

angus242 said:


> I dunno if I'd ever feel comfortable with letting someone else tell me what to charge.


I know I wouldn't be comfortable having someone tell me what to charge. However if there was allready a book made that applied to the work I do it would be great to allready have a format and just have to adjust it to what my numbers need to be. Even if it didn't apply to what I do having a starting point to customize would be good.


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## angus242 (Oct 20, 2007)

summithomeinc said:


> I know I wouldn't be comfortable having someone tell me what to charge. However if there was allready a book made that applied to the work I do it would be great to allready have a format and just have to adjust it to what my numbers need to be. Even if it didn't apply to what I do having a starting point to customize would be good.


I agree. With every job I quote, I create a detailed spread sheet. I suppose that is my reference. If I am consulting on a possible new project, I can use a similar past project's spread sheet as a starting point. Customizing the new job is much quicker as most of the basics are inserted and priced for me.


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## summithomeinc (Jan 3, 2011)

angus242 said:


> I agree. With every job I quote, I create a detailed spread sheet. I suppose that is my reference. If I am consulting on a possible new project, I can use a similar past project's spread sheet as a starting point. Customizing the new job is much quicker as most of the basics are inserted and priced for me.


I have found the quicker I can give a price the more often I sell the job. However I also have found when I just "eyeball" it and give a price without sitting down and doing the numbers alot of times I get it wrong and either price it too high or too low. So I'm trying to create a system to be more accurate in my estimates.


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## angus242 (Oct 20, 2007)

No doubt. Quick is good. Seems that a majority of my jobs simply cannot be proposed quickly.


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## TimNJ (Sep 7, 2005)

There are books out there by RS Means that price jobs based on the trades. They are probably similar to the auto mechanics flat rate book.


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## TxElectrician (May 21, 2008)

TimNJ said:


> There are books out there by RS Means that price jobs based on the trades. They are probably similar to the auto mechanics flat rate book.


 I know there are many flat rate systems (books) out there for the electrical trade. Many let you plug in your labor rate and material costs.

For unit pricing I find it fits me better to use data I have collected over the years.

If you have hours to kill go over to electrical talk and jump in the arguement over flat rate pricing. I can see the advantages for a service only company or division.


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## fourcornerhome (Feb 19, 2008)

Craftsman book company has them


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## summithomeinc (Jan 3, 2011)

angus242 said:


> No doubt. Quick is good. Seems that a majority of my jobs simply cannot be proposed quickly.


Mine are the opposite. Would be better most of the time to quote it get the job, get it scheduled all in one trip. Most of my jobs are a week or less though.


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## Oconomowoc (Oct 13, 2011)

My entire business is based on a book I wrote in MS word. My pricing structure is also in the book. Once that was created I spent months developing a breakdown on every possible scenario so I can give a price in seconds. To make changes all I do is either change my rate or my material costs. Even that takes just seconds.

None of my competition does that probably because it takes a great deal of effort and time. While that's true, once the time and hard work is spent you never need to do it again. I will use my system until I die.

On a side note, I get work because of it. Nothing is more reassuring to a homeowner than a contractor that can give a price immediately. The guy that panders and says "well, I charge *** amount labor and add materials" sounds like a moron. Homeowners like a sure thing. When I quote a water heater its the same price for everybody. Come hell or high water the homeowner is guaranteed not to spend a penny more than I quote.

Systems & consistency could fill a volume of books.


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## summithomeinc (Jan 3, 2011)

Oconomowoc said:


> My entire business is based on a book I wrote in MS word. My pricing structure is also in the book. Once that was created I spent months developing a breakdown on every possible scenario so I can give a price in seconds. To make changes all I do is either change my rate or my material costs. Even that takes just seconds.
> 
> None of my competition does that probably because it takes a great deal of effort and time. While that's true, once the time and hard work is spent you never need to do it again. I will use my system until I die.
> 
> ...


My thinking exactly. For an example the reason McDonalds is sucessful is they have a system for everything they sell. As long as their employees follow the system it doesn't matter if you are in seattle or atlanta you get the same quarter pounder with cheese. The customer knows what to expect. So that is my goal with my bussiness also. Have a system or process for each task and the result will be the same each and every time. Which will hopefully lead to more satisfied customers,being more efficient, and greater profit.


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## Oconomowoc (Oct 13, 2011)

summithomeinc said:


> My thinking exactly. For an example the reason McDonalds is sucessful is they have a system for everything they sell. As long as their employees follow the system it doesn't matter if you are in seattle or atlanta you get the same quarter pounder with cheese. The customer knows what to expect. So that is my goal with my bussiness also. Have a system or process for each task and the result will be the same each and every time. Which will hopefully lead to more satisfied customers,being more efficient, and greater profit.


Yeah, what you will discover is how much stress disappears once you develop it. It makes business dead simple and most of all FUN.


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## summithomeinc (Jan 3, 2011)

Oconomowoc said:


> Yeah, what you will discover is how much stress disappears once you develop it. It makes business dead simple and most of all FUN.


Fun? And profitable? Can those two words be said in the same sentence and be talking about a LEGAL business?


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## dangerdave (Jan 13, 2012)

*http://rsmeans.reedconstructiondata.com/?CouponCode=IGOG-3010&gclid=CPrb_uTey60CFcYZQ*

Here is a link. Depending on your trade good luck getting someone to pay those prices. The MEPS trades are smart and collectively stay at or above those rates. But the crack head alcoholic painters I have to bid against are too stupid to do that.

http://rsmeans.reedconstructiondata.com


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## Oconomowoc (Oct 13, 2011)

summithomeinc said:


> Fun? And profitable? Can those two words be said in the same sentence and be talking about a LEGAL business?


Sometimes its crappy I guess. For me its more fun than profitable, I mean, yeah I make money and all but my business is all about enjoying life and meeting people. Money is a by-product for the most part. A system ups me repeat it.

Today was rough as hell but I still had fun.


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## summithomeinc (Jan 3, 2011)

Oconomowoc said:


> Sometimes its crappy I guess. For me its more fun than profitable, I mean, yeah I make money and all but my business is all about enjoying life and meeting people. Money is a by-product for the most part. A system ups me repeat it.
> 
> Today was rough as hell but I still had fun.


I like your attitude. Maybe when I get a little more comfortable with being sucessful I'll have more fun.


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