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Is $280 to $340 The Correct Hourly Price

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  • Re: Sucks being at the top don't it?

    Originally posted by plumberscrack View Post
    Dunbar gets my vote as the best post in this thread so far....stay tuned
    Dunbar alway has something good to say. I knew it would get interesting once he stepped in this thread.
    Buy cheap, buy twice.

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

      Originally posted by mrs. westcoast View Post
      What he charges is up to him and his customers and reflects in his reputation.
      and character whether it's good or bad.
      Buy cheap, buy twice.

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

        Originally posted by Frankiarmz View Post
        This thinking has more holes than swiss cheese and the genious who who thought it up needs some lessons in finances. things like health insurance, workers comp, retirement,operating expenses sucha as offices supplies,truck rentals and mainatenance are expenses to the business and not billable to the customers what form of insanity gave you the impression that customers had to pay thecost of your trucks and maintenance? That comes from your end so do a good job of managing your business. The customer is paying for an established reputable professional who is established well enough to run his/her business and charge them for labor and parts, not running your business. What Goddam nerve!
        My point is made about not being a businessman

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

          Who would win in a fight between Hellboy and Iron Man?

          J.C.

          Comment


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

            Originally posted by Service Guy View Post
            So how is a plumber supposed to calculate his hourly rate Frankiarmz? I'll tell you. You calculate the annual business expense overhead, and then divide that by the average number of hours billed in a full work-year.

            If you don't do that, then how is one supposed to run the business? Lets just say for example (these numbers are for example only!)
            that I decided to charge $50/hour because that 'seemed fair' and I billed out 6 hours/day to do service. Thats is a gross income of $300/day or $1500/week.
            So I get my $1500 at the end of the week and I decide to pay my bills to seewhat kind of money I can afford to pay myself as a salary.
            Now at the end of the week I have to pay for vehicle maintenance and upkeep on the company owned work truck, lets say $100,
            I have to pay for fuel for the week: $200,
            if I have a $800/month advertising bill in yellowpages, psotcards, internet, whatever, thats about $200/week.
            If my insurance premium is $1200/year, then its about $25/week.
            Phone service: $50/week.
            Secretary/dispatcher/book-keeper: $600/week in total payroll.
            Tool maintenance and replacement: $40/week.
            Office supplies and misc. expenses: $10/week.

            Remember these numbers are purely for example only. But anyway I end up paying out $1225 in business bills that week, and then I take my leftover $275 dollars and I pay the taxman and I am left with $225 in total income and zero business profit.
            Obviously in the above example, the $50/hour rate isn't enough. So how do I decide what is enough??? By asking the other plumbers what they charge? By asking my customers what they think is fair? NO, I figure out all my business expenses down to the last penny, calculate in a fair salary and profit margin and thats EXACTLY WHAT EVERY BUSINESS OWNER SHOULD BE DOING.
            Every time you buy a Ridgid tool, a portion of that money goes towards changing the light-bulbs in their sales offices....that how business works, DUH!
            Dont wate your time. He is going to scream unfair, ripoff, etc, no matter how you try to explain it. Some people just dont get it. How dare we include overhead, direct and indirect expenses in our pricing. That should come out of our pockets.....NOT

            Comment


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

              Originally posted by Masterplumb View Post
              My point is made about not being a businessman
              Like you said last night goodriddance! Did you forget? You and this moron can invent any business expenses you want but it is up to the consumer wheter or no they will pay. If I needed the services of a Plumber and he explained that he charged $125.00 an hour and gave me a written estimate for time I would consider using him, on the other hand if the self proclaimed non-scumbag sat down in all his fine mannerism and explained about his truck costs and repairs, advertising and other expenses I would ask him to leave and consider approaching me if he could work for less money than $340 an hour after his trucks were paid for and his advertising finished for a while. A good businessman does not overcharge his clients and $340 an hour for plumbing repairs is extreme regardless of his expenses. A good businessman understands the economy, his expenses, his clients and so much more. Tunnelvision does not offer much of a view,expand your mind to include more.

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

                lol, hell boy
                Buy cheap, buy twice.

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

                  Yeah, I agree. I don't know much about him but that Hellboy looks pretty tough. Ironmans just a dude in a suit. Kind of a puss.

                  Frankiearmz is kind of a superhero name. Or one from the mob. "Hey Tony, send Frankiearmz to take care of it."

                  J.C.
                  Last edited by BobsPlumbing; 07-08-2008, 05:54 PM.

                  Comment


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

                    Originally posted by Frankiarmz View Post
                    Like you said last night goodriddance! Did you forget? You and this moron can invent any business expenses you want but it is up to the consumer wheter or no they will pay. If I needed the services of a Plumber and he explained that he charged $125.00 an hour and gave me a written estimate for time I would consider using him, on the other hand if the self proclaimed non-scumbag sat down in all his fine mannerism and explained about his truck costs and repairs, advertising and other expenses I would ask him to leave and consider approaching me if he could work for less money than $340 an hour after his trucks were paid for and his advertising finished for a while. A good businessman does not overcharge his clients and $340 an hour for plumbing repairs is extreme regardless of his expenses. A good businessman understands the economy, his expenses, his clients and so much more. Tunnelvision does not offer much of a view,expand your mind to include more.
                    I guess I just cant get enough of you Franki. You do realize that even though we own businesses, the price of our heating oil has gone up 500% or whatever number you throw out there, the price of our gas and diesel has gone up whatever % you say too. Copper, iron, brass, and even plastic has gone up too. Like I said I find his prices high but if those numbers work for him and its what he needs to charge then so be it. If people dont get 3 estimates then they are the fools. If you think that my prices are too high for the current economy then guess what.....call someone else.
                    Last edited by Masterplumb; 07-08-2008, 05:56 PM.

                    Comment


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

                      Originally Posted by Frankiarmz
                      This thinking has more holes than swiss cheese and the genious who who thought it up needs some lessons in finances. things like health insurance, workers comp, retirement,operating expenses sucha as offices supplies,truck rentals and mainatenance are expenses to the business and not billable to the customers what form of insanity gave you the impression that customers had to pay thecost of your trucks and maintenance? That comes from your end so do a good job of managing your business. The customer is paying for an established reputable professional who is established well enough to run his/her business and charge them for labor and parts, not running your business. What Goddam nerve!

                      To All, in reading the above post I wrote last night I realize I was WRONG in what I said and I apologize. My upset was directed towards the person "I felt was being a jerk by suggesting $340 an hour was a justifed rate. I did not think it could be justified because I know most trades poeple do not charge anywhere near that and most customers would or could not pay it. Of course you must include all your expenses including labor. I still think there has to be some resopnsibility on the part of the business owner to mangae things in order to keep costs and prices within accepted rates for the area. Serveal of you were right to bring this to my atttention but I was too pissed off to accept the advice. Still bothers me to think customers got charged $340 an hour.

                      Comment


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

                        Originally posted by Masterplumb View Post
                        I guess I just cant get enough of you Franki. You do realize that even though we own businesses, the price of our heating oil has gone up 500% or whatever number you throw out there, the price of our gas and diesel has gone up whatever % you say too. Copper, iron, brass, and even plastic has gone up too. Like I said I find his prices high but if those numbers work for him and its what he needs to charge then so be it. If people dont get 3 estimates then they are the fools. If you think that my prices are too high for the current economy then guess what.....call someone else.
                        Yeah, I'm like a drug, can't blame you. I agree,you're right. Hugs and kisses.

                        Comment


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

                          Now we can move on to why I charge $500.00 for aerators.

                          Comment


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

                            Originally posted by JCsPlumbing View Post
                            Now we can move on to why I charge $500.00 for aerators.
                            I'll leave now and let you guys figure out the details. Been taking pain meds for the back and my hands in cast , I have no business posting for a while. Bye.

                            Comment


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

                              Originally posted by JCsPlumbing View Post
                              Now we can move on to why I charge $500.00 for aerators.
                              You must not be figuring your indirect costs into that aerator.

                              Comment


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

                                Originally posted by JCsPlumbing View Post
                                Who would win in a fight between Hellboy and Iron Man?

                                J.C.
                                Hellboy, hands down. Has the forces of good and evil working for him. Frankiarmz is retired, no more killing no matter what they offer to pay!

                                Comment

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