Page 1 of 4 123 ... LastLast
Results 1 to 10 of 38

Thread: Contractor hourly rate

  1. #1
    Platinum Member
    Join Date
    Apr 2010
    Location
    KZN
    Posts
    1,587
    Thanks
    76
    Thanked 138 Times in 118 Posts

    Contractor hourly rate

    I have a customer indicating that my hourly rates are tooo high compared to other provinces

    I have been charge R 525.00 including callout fee for breakdowns and no travelling. (KZN)

    Industrial factories i charge a call out fee R 750.00 including the first half hour because i have to normally spend 2 hrs cleaning my equipment after working in some of these filthy factories.

    I take my car for a service and they charge me R 600.00 for an unskilled person to drain the oil out my car. Then they have a standard fee of 7 hours to replace a cam belt looking thing taking my bill to over R 15000.00 including spares for a 150 000 service

    Customer complaining to pay me R 525.00 as qualified electrician with over 30 year hands on experience. Time to employ unskilled staff and dump them on site and let them take 5 hours to do a job which would take me 1 hour because of my experience and send a bill for 5 hours at R 300.00 at a total of R 1500.00 rather than 1 hour at R 525.00.

    Do you know why we have this problem because of all you electrical contractors out there screwing up the industry.

  2. #2
    Bronze Member Brett Nortje's Avatar
    Join Date
    Jan 2015
    Location
    Cape Town
    Posts
    132
    Thanks
    28
    Thanked 1 Time in 1 Post
    Quote Originally Posted by ians View Post
    I have a customer indicating that my hourly rates are tooo high compared to other provinces

    I have been charge R 525.00 including callout fee for breakdowns and no travelling. (KZN)

    Industrial factories i charge a call out fee R 750.00 including the first half hour because i have to normally spend 2 hrs cleaning my equipment after working in some of these filthy factories.

    I take my car for a service and they charge me R 600.00 for an unskilled person to drain the oil out my car. Then they have a standard fee of 7 hours to replace a cam belt looking thing taking my bill to over R 15000.00 including spares for a 150 000 service

    Customer complaining to pay me R 525.00 as qualified electrician with over 30 year hands on experience. Time to employ unskilled staff and dump them on site and let them take 5 hours to do a job which would take me 1 hour because of my experience and send a bill for 5 hours at R 300.00 at a total of R 1500.00 rather than 1 hour at R 525.00.

    Do you know why we have this problem because of all you electrical contractors out there screwing up the industry.
    No offense, but you could employ some 'technikon' students to do it for much cheaper and they get a reference. if you really want to get it done better, you need to look at what you have that other's don't. a little more of an offense would be to point out that in South Africa people are very lazy. it comes from our racial diversity, where we do not trust each other for some reason.

    So, you need to price yourself better. if you were to make it 'quicker' - your service that is - then you could try to do it in less time, and, those are manufacturing hours. the problem is it doesn't mater how long it takes as the demand for productivity in south africa is so low due to the recession and lack of funding for customers. this mes they are doing nothing, fixing the thing doing nothing, then complaining about lost hours, yes?

    Now, if you were to clean your equipment faster, for a start, you could try to use one barrel of acid or some sort of fast cleaning agent. then you could use it multiple times, scraping the dirt off the top, if that is where the dirt goes, or pouring it into the other barrel if the dirt is at the bottom, yes?

    Then, you could do the electrical stuff yourself! just wire the same color wires together, or switch the machine on or off. that is what is called for, not some flipping nuclear power plant maintenance.
    !! Going to my destruction !!

  3. #3
    Platinum Member
    Join Date
    Apr 2010
    Location
    KZN
    Posts
    1,587
    Thanks
    76
    Thanked 138 Times in 118 Posts
    Quote Originally Posted by Brett Nortje View Post
    No offense, but you could employ some 'technikon' students to do it for much cheaper and they get a reference. if you really want to get it done better, you need to look at what you have that other's don't. a little more of an offense would be to point out that in South Africa people are very lazy. it comes from our racial diversity, where we do not trust each other for some reason.

    So, you need to price yourself better. if you were to make it 'quicker' - your service that is - then you could try to do it in less time, and, those are manufacturing hours. the problem is it doesn't mater how long it takes as the demand for productivity in south africa is so low due to the recession and lack of funding for customers. this mes they are doing nothing, fixing the thing doing nothing, then complaining about lost hours, yes?

    Now, if you were to clean your equipment faster, for a start, you could try to use one barrel of acid or some sort of fast cleaning agent. then you could use it multiple times, scraping the dirt off the top, if that is where the dirt goes, or pouring it into the other barrel if the dirt is at the bottom, yes?

    Then, you could do the electrical stuff yourself! just wire the same color wires together, or switch the machine on or off. that is what is called for, not some flipping nuclear power plant maintenance.
    Like most things in SA. I am just going to smile at this response

  4. Thank given for this post:

    Brett Nortje (06-Jan-15), CLIVE-TRIANGLE (07-Jan-15)

  5. #4
    Diamond Member AndyD's Avatar
    Join Date
    Jan 2010
    Location
    Cape Town
    Posts
    4,403
    Thanks
    513
    Thanked 854 Times in 687 Posts
    Very appropriate thread Ian, I'm muling over our six-monthly pricing adjustments as we speak. If I get any clients who complain about my pricing structure, I'll recommend they call you cause you're considerably cheaper.
    _______________________________________________
    I am special and so is Vanash.
    _______________________________________________

  6. #5
    Platinum Member sterne.law@gmail.com's Avatar
    Join Date
    Oct 2009
    Location
    Durban
    Posts
    1,328
    Thanks
    38
    Thanked 561 Times in 410 Posts
    Blog Entries
    7
    Maybe point out the R1500 an hour for the lawyer to sort out the R300 an hour mess.
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

  7. #6
    Diamond Member adrianh's Avatar
    Join Date
    Mar 2010
    Location
    Cape Town
    Posts
    5,089
    Thanks
    336
    Thanked 808 Times in 642 Posts
    Quote Originally Posted by ians View Post
    Like most things in SA. I am just going to smile at this response
    Like I said in another thread.... Déjà vu

    Anyway, my geyser blew up and I was quoted R600 per hour. My camera developed a fault and I was quoted as follows: R299 up front, another R300 if I don't accept the quote.

    The insurance company paid the plumber and his bill was the exact amount that the insurance company pays. R6500 for 2 hours work isn't bad going.

    I figured out that the lens mount got banged and bent so I stripped the lens and repaired it myself. Was it cost effective, difficult to say, it took about 5 hours to do because I had to figure out how to strip, clean, repair and reassemble the lens. I suppose the satisfaction of having done it myself was worth the effort but it came with the risk of totally trashing the lens.

    The answer is simple, if your rates are within average boundanies then the customer is free to pay the same somewhere else. The determining factor, for me at least, is the experience and quality of the artisan. The problem with the man inthe street is that they only look at price and seem to think that low is good....strange how that doesn't apply to their own salaries, but that is a debate for another time.
    How easily someone is offended is directly proportional to how stupid they are.
    ~GS Elevator

  8. #7
    Platinum Member
    Join Date
    Apr 2010
    Location
    KZN
    Posts
    1,587
    Thanks
    76
    Thanked 138 Times in 118 Posts
    IT is that time of year again and it is time to increase rates again. I dont feel that R550 an hour is unreasonable to charge for electrical services. Maybe it is time to go back a little again, charge R400 but if i go over the hour by a minute or 2 charge for 2 hours that way the rate is lower but i make more turnover at the end of the day. Smart phone clock card now we talking as i get the call clock in and the customer can clock me out when i am finished with the invoice and pay me via the smart phone with a card.

  9. #8
    Diamond Member wynn's Avatar
    Join Date
    Oct 2006
    Location
    east london
    Posts
    3,338
    Thanks
    548
    Thanked 624 Times in 523 Posts
    Charge them R300 per hour and make sure that you spend 65 minutes on the job?
    "Nobody who has succeeded has not failed along the way"
    Arianna Huffington

    Read the first 10% of my books "Didymus" and "The BEAST of BIKO BRIDGE" for free
    You can also read and download 100% free my short stories "A Real Surprise" and "Pieces of Eight" at
    http://www.smashwords.com/books/view/332256

  10. Thanks given for this post:

    ians (07-Jan-15)

  11. #9
    Full Member
    Join Date
    Mar 2013
    Location
    South Africa
    Posts
    68
    Thanks
    0
    Thanked 4 Times in 4 Posts
    A few customers will always think your rates are high, a few will think they are low, 80% will not think about it at all as long as they are happy with the service levels. I try to ignore the cheapskates but sometimes do make compromises to long term customers, although I usually end up calling myself names(bad ones) afterwards. I guess this is a problem all of us have at some stage. I will often do little extras for clients, but if they squeeze the last cent out of a job they cant expect any favors.

  12. #10
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,980
    Thanks
    3,055
    Thanked 2,463 Times in 2,068 Posts
    Blog Entries
    12
    Quote Originally Posted by ians View Post
    I dont feel that R550 an hour is unreasonable to charge for electrical services.
    It isn't unreasonable - not for a wireman anyway. And you're an MIE

    Quote Originally Posted by adrianh View Post
    The insurance company paid the plumber and his bill was the exact amount that the insurance company pays. R6500 for 2 hours work isn't bad going.
    I assume that wasn't just for labour, but included the geyser, pipes and other materials.
    Have you checked the electrical side is up to muster?
    The trouble with opportunity is it normally comes dressed up as work.

Page 1 of 4 123 ... LastLast

Similar Threads

  1. contractor needed
    By bergie in forum Electrical Contracting Industry Forum
    Replies: 5
    Last Post: 25-Apr-14, 05:35 AM
  2. Selling Hourly Bundles
    By Neville Bailey in forum General Business Forum
    Replies: 6
    Last Post: 31-Jan-11, 09:14 AM
  3. Contractor (independant?) How to?
    By John1 in forum General Business Forum
    Replies: 8
    Last Post: 01-May-09, 06:00 PM
  4. Independant Contractor
    By twofly in forum Tax Forum
    Replies: 12
    Last Post: 12-Nov-08, 02:24 PM
  5. [Question] Contractor Vs Employee
    By Wally in forum Tax Forum
    Replies: 3
    Last Post: 21-Oct-08, 01:34 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •