Announcement

Announcement Module
Collapse
No announcement yet.

Is $280 to $340 The Correct Hourly Price

Page Title Module
Move Remove Collapse
X
Conversation Detail Module
Collapse
  • Filter
  • Time
  • Show
Clear All
new posts

  • Re: Is $280 to $340 The Correct Hourly Price

    This thread reminds me of an ancient chinese saying. It's better to let people think you're an idiot then open your mouth and prove it. Aaron, that write that down.
    Buy cheap, buy twice.

    Comment


    • Re: Is $280 to $340 The Correct Hourly Price

      Originally posted by Service Guy View Post
      All i know is the longest threads have been some of my all-time favorite. Maybe others don't see it that way. Long, argumentative, off-topic threads RULE imo!!!
      100% agreed here buddy.
      The best lessons come through adversity, in other words...differing opinions are the staple of progress.
      For that very reason, I think THIS thread stands to be one of the best I've seen on this forum in a long, long time.
      Leonard might be a scam artist, he might be a con, he might be a scheister...who knows.
      What I DO know is this guy has been in biz for 30 years, he has a completely different biz model than I do.
      I don't agree with the "hit and run" style large companies with full page ads in the yellow pages and massive ad budgets that squeeze every dime out of every customer they can, but lets face it...I'm small one man show with just a couple of years under mny belt iun self employment...it's almost guaranteed there's something I can learn from this guy.
      Does NOT mean I agree with him, nor that I'd run my business his way, but there's a thing or two I might pick up and be able to implement to help me as I plan my future.

      Comment


      • Re: Is $280 to $340 The Correct Hourly Price

        Originally posted by bestline3 View Post

        I have company coming tonight. I put out my best crystal. The candles are lit and I have very soft and romantic music picked out.
        For Robert? How romantic. . .Rick, Crack, and Hawk may want in on this now.
        I love my plumber

        "My Hero"

        Welcome, Phoebe Jacqueline!

        Comment


        • Re: Is $280 to $340 The Correct Hourly Price

          Originally posted by bestline3 View Post
          Hi, Honey I'm home. I walk into the bedroom and catch my wife on top of one of my plumbers. .

          i guess screwing the customer has come back to haunt you.

          everyone is getting screwed


          rick.

          p.s. we'll see you on sunday about 10:30-11:00 am.

          keep the lights on tom
          phoebe it is

          Comment


          • Re: Is $280 to $340 The Correct Hourly Price

            Originally posted by MrsSeatDown View Post
            For Robert? How romantic. . .Rick, Crack, and Hawk may want in on this now.
            rick is getting in on some on sunday

            rick.
            phoebe it is

            Comment


            • Re: Is $280 to $340 The Correct Hourly Price

              Originally posted by PLUMBER RICK View Post
              rick is getting in on some on sunday

              rick.
              great Play nice
              I love my plumber

              "My Hero"

              Welcome, Phoebe Jacqueline!

              Comment


              • Re: Is $280 to $340 The Correct Hourly Price

                Originally posted by bestline3 View Post
                Not one post disagrees with my price of $340 per hour. Their own personal opinion is that the price is too high. My customers are average Joe's and they don't complain. Suppose, my customer never complain. Should I lower my price. You liar! Only a 'Fool' would lower their price if no customers wer complaining.
                I'll take the bait.

                You run 8 trucks, and you also said you net over $1M a year. That means each truck is netting you $125,000. You have 1000 billable hours, so you are getting $125/hr in profit. That's a profit margin of 36%. What I think is really interesting though is your plumber is making $75. So if we follow the equation you're providing almost twice as much value as he is. To me that just doesn't seem right (not in a 2+2=4 sense, but a more cosmic/karma sense).

                Now your original post had 75 profit, but we should use the revised 125 figure. Your expenses (except advertising) were $162.8. Add in your 125 profit, you get a gross of $287.8 per hour. You wanted to add 10% advertising ($28.78, not the $50 you originally put down), which would give us an hourly charge of $316.58.

                Also we learn from your figures that your book keeper/dispatcher/office manager is worth $140,000/year; which also seems a bit high (unless she is actually an accountant, in which case it is a waste to have her act as an office manager).

                Comment


                • Re: Is $280 to $340 The Correct Hourly Price

                  Originally posted by ToUtahNow View Post
                  I am so sorry I forgot kids visit this site. Of course there is both a Plumbing Fairy and a Tooth Fairy. As a matter of fact you may be living with one of the two.

                  Mark
                  That is quite possibly the FUNNIEST post I've ever read on this forum.

                  Thank you, I really needed that.

                  Comment


                  • Re: Is $280 to $340 The Correct Hourly Price

                    I'm shaking in my boots! What am I going to on Sunday? Maybe, I'll come up with the flue, or is it flew, as in flew away. Be ready to spend 4 hours and don't stand me up.

                    To the Geek: Don't try to over-analyze. Many plumbers, that work for companies, earn $2500 per week. Skip the rip-off crap.That is a good number when houses cost $500,000 and gas is $5. If the plumbers earn $500, then why would it be bad for me to earn $500 for myself from each truck.

                    Now, the math is more simple. My shop works 6 days and very often we work on Sundays. Skip the Sundays. Make believe I have 7 trucks. If each truck earns me $500 a day, I make $21,000 a week. That is $1 million.

                    Some trucks do much more and some do much less. It must average to about $500 per day.

                    This Thread has been fun. I have a lot of work to do.

                    It has been fun.

                    See you guys on Sunday

                    Jack

                    Comment


                    • Re: Is $280 to $340 The Correct Hourly Price

                      Originally posted by bestline3 View Post

                      See you guys on Sunday

                      Jack
                      it's joey/ mrsseatdown you have to worry about

                      adam an i might talk guns and shooting. something to break the ice.

                      now if your a good boy, we might bring you a surprise from alpine village

                      make sure to answer the phone on sunday. it's us calling

                      rick.
                      phoebe it is

                      Comment


                      • Re: Is $280 to $340 The Correct Hourly Price

                        To The Geek:

                        You are mentioning billable hours in your calculations. I don't bill by the hour. I do only flat-rate. I need an hourly price to use as a benchmark for my flat-rate price.

                        I have to focus on things I have been ignoring and probably won't be writing to many posts. So, everyone can cheer. I will meet with the members on Sunday and fulfill my promise to deliver a four hour sales pitch for time-shares and swamp land in Florida. Can I do it?

                        Jack

                        Comment


                        • Re: Is $280 to $340 The Correct Hourly Price

                          hellboy!
                          Brent

                          Comment


                          • You Can Only Clear When YOU actually do the math

                            Why do we have a problem seeing that $280 to $340 is the correct price?

                            It is because you keep telling yourself that this is too high and you don't want to do all the actual math?

                            Every single expense related to running your business has to go into the calculations whether the efficiency, truck repairs, or losses are your fault or not. No losses come from my personal account!

                            I did not make this price. This is the price that always comes up when we sit with groups of 20 to 40 plumbers at the same time. Each table writes down all their expenses. Each table does their own calculations. Each table comes up with $280 to $340. The next time I go to a seminar I will take pictures of the calculations.


                            These plumbers are from all over the United States. The last seminar was in Ohio. These prices are not Leonard's theory. This came from hundreds of professional plumbers who run professional plumbing companies.

                            Just because you are a mom and pop one-horse operation is no excuse or reason to charge less than what the real numbers.

                            Many members are saying that they run a liener and smaller shop, so they can pass this savings to their customer. Why are you more concerned about being cheaper (less expensive) that you are making a profit? Why is it a crime to get (take) maximum profit?

                            Can someone make a worksheet that everyone can use to enter all the expenses to run a business, post it in the forum, allow each, interested, member to plug in his own number and lets see what we come up with.

                            There are many numbers you can't hide. If your wife is doing your books you must include her as a paid employee. If you are working out of your home, you cannot compare this figure to a plumber with a shop. You must include the cost to rent and run a shop. You must use an annual income that that meets today's requirements. I used only $75,000 per year. That is peanuts when it is only $1500 per week and you cannot buy a NICE home in California with only $1500 per week. You can get a very average home for this amount of income.

                            Stop fooling yourself! Let's try to come to a scientific conclusion rather than an opinion.

                            Again, I did not say I charge my customers $340 for service calls. I said this is the benchmark I use when estimating many flat-rate jobs and contracts.

                            Leonard

                            Comment


                            • Re: Is $280 to $340 The Correct Hourly Price

                              It has taken me many years to get "bottom line" through my head. And I guess it was because I was always a plumber first and a business man second (a very distant second) I wasn't untill I brought my business to the brink of failure several times and circled the drain for years that I finally listened to my wife's advice and hired a professional to come in and evaluate the business. I alos began attending business and sales seminars. There is really only one golden rule and that is you must know your costs. Don't live in denial. It is what it is. Can you lower them? Yes, most likely. But when you finally get your cost under control then and only then can you set your price. Our costs are close to Leonards bottom figure, but not signifigantly so. Certain areas of the country are going to be more expensive to operate in because of increased fuel costs, administrative B.S. travel, cost of goods and labor, etc. Regardless, you must take the time to know your cost of business. So when you finally come to the conclusion that you need to charge $ 260.00 an hour, how are you going to get away with that when everyone else in town is charging $ 95.00? For us the answer was to go to flat rate pricing. I know it sounds deceptive, but what it does is give the customer the cost up front. They never see the $ 240.00 h\r on the bill so they don't ***** about it. It gives them a figure that they can either accept or reject. So do you loose jobs to the cheapo guys? Yes you do and if your company can not offer superior service you will most likley fail.
                              For those of you running a one man show, most of this discussion will not apply because your overhead cost's are considerably below the larger shops. but keep it in mind because if you are good at what you do it will not be long before you need to start hiring and growing your company.
                              sigpic

                              Comment

                              Working...
                              X