Contractor hourly rate

[HR Solutions]

I for one will give discount if i don't have another job to go to, while lifting my price if my calls increase.

Except that if you do give a discount if you don't have another job to go to, then your turnover/income drops twice (for the discounted call & the non next call)

[mosescapetown]

Except that if you do give a discount if you don't have another job to go to, then your turnover/income drops twice (for the discounted call & the non next call)

a rather complicated conundrum...lol

[ians]

My concern is that other contractors in KZN are charging as little as R280 per hour per team.

Could this be why my little business is still operating after 24 years.

Every day i see new contractors, with new vehicles and teams and a couple months later when i ask the sales guy behind the counter what happened to that contractor. The response is, "Damn we got screwed for R100 000 or R500 000 when the contractor went bankrupt."

These contractors which come and go, just F%^&** the industry up for the rest of us.

[Sparks]

You can say that again. I do not work according to an hourly rate. I work my quote out according to the task at hand and the circumstances. I also adjust according to the financial status of the client. Being a micro business it is easy for me and it works. I charge different rates for working on a DB compared to clipping a cable to a wall. When my work load gets a bit much I up my prices and go with the flow.

[mosescapetown]

My concern is that other contractors in KZN are charging as little as R280 per hour per team.

Could this be why my little business is still operating after 24 years.

Every day i see new contractors, with new vehicles and teams and a couple months later when i ask the sales guy behind the counter what happened to that contractor. The response is, "Damn we got screwed for R100 000 or R500 000 when the contractor went bankrupt."

These contractors which come and go, just F%^&** the industry up for the rest of us.

I agree with you 100%.. these fly by nights is messing up the industry.

[Phil Cooper]

Charge a lower callout fee - and add a cost per hour, or part thereof....

[ians]

It seems i might not need to worry about this in the near future. The meeting tomorrow with the accountant will determine whether i start selling everything, close my doors and start looking for a job, or if there is a way forward. The hurdles just seem to be getting higher and more difficult to get over.

It might be time that i throw in the towel or just tap out. I have 10 months to go and my business would be going for 25 years. I was going to make this decision next year, unfortunately it looks like it will happen this week. I just dont have that will power, lust or excitement i had 25 years ago to keep going anymore.

[wynn]

It seems i if there is a way forward.

Perhaps it is time to concentrate on just manufacturing the appliance you spoke about in other posts and maybe do UPS installations.

You know? apply the 80/20 rule.

[ians]

Wyn going to use up the left over stock to make what i can then shut everything down. The problem is my marketing skills suck, it doesnt help having a awesome product if you cant sell it. The only way my electrical bussiness has lasted this long is because i am f&*^ good at what i do in my trade, being a good businessman or sales person or accounting for that matter, i suck. I believe this is a problem with the majority of small businesses.

I will only know tomorrow after the meeting with the accountant how bad it really is. I just hope i have enough shit to sell to cover all the outstanding bills, otherwise i am gona loose my house and be out on the street

[Sparks]

All the best for today with your accountant. The industry needs to keep guys with know-how, not lose them. The laws must be enforced to get the cowboys out of the trade. Maybe it is time to get into manufacturing, or as suggested, to go with new technology installation. Load shedding will only get worse.

[ians]

The meeting went a lot better than expected.

Maybe that's what i have been missing all this time is a decent accountant to advise me, assist me with the redistribution of my turnover, who has an interest in what i do and the team back up his suggestions.

[Justloadit]

Hi Ians,

I am not trying to be funny here, but maybe your wife should do the quotes and invoices and the books and call for payment..
The problem you have is like me, we are too close to the product and the customer, so we are emotionally involved/connected with the service or product, and immediately melt when a customer complains about the price, or wants a discount, or wants something done for free, and we oblige.

When you wife does the quotes or invoicing, she does not know who the customer is, and will be as cold as ice when asked for a price, or complain about the price, or wants a discount. She will also not give in to a discount either because she has no idea of the cost, and the price on the invoice or quote is the price you are going to pay.

It is also a good excuse to tell your customer, sorry but my accountant says you must pay RXXX and no discount before I start.
It sort of helps you feel a way out before giving in, as now some one else is responsible for the reduction in the price.

[Sparks]

I am glad to hear the sun is still shining for you Ian. I understand and know exactly what Justloadit is talking about, I would certainly do that if my wife had not passed on already. Now it is only me to blame when I let a client convince me that they cannot afford my rates. Strange though, even a cash discount was not enough motivation for immediate payment. Thought I would try "administration fees" as an alternative to COD discount - still no luck, my quote was signed in acceptance and they ended up paying R750.00 administration fees! Believe it or not my original COD quote was only R1550 yet they still opted to pay the extra R750

[ians]

Hi Ians,

I am not trying to be funny here, but maybe your wife should do the quotes and invoices and the books and call for payment..
The problem you have is like me, we are too close to the product and the customer, so we are emotionally involved/connected with the service or product, and immediately melt when a customer complains about the price, or wants a discount, or wants something done for free, and we oblige.

When you wife does the quotes or invoicing, she does not know who the customer is, and will be as cold as ice when asked for a price, or complain about the price, or wants a discount. She will also not give in to a discount either because she has no idea of the cost, and the price on the invoice or quote is the price you are going to pay.

It is also a good excuse to tell your customer, sorry but my accountant says you must pay RXXX and no discount before I start.
It sort of helps you feel a way out before giving in, as now some one else is responsible for the reduction in the price.

My wife works for a company and earns twice what i do She does help were she can.

[ians]

Sparks i hear you, 24 years of this crap i could tell you many a ridiculous story of customers and their issues and excuses.

Dave had the right idea, i just need to take that step up.