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Thread: Prices gone mad!!

  1. #1
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    Prices gone mad!!

    Hi All

    Anyone else starting to get concerned about the cost of materials??

    I phone around once in a while but my usual supplier is always cheaper than the rest by far.

    Even my long standing clients are starting to raise an eyebrow when I do quotes/invoices now.

    Recent job I priced - came in at R81000 all in. Repriced it with my old price list (Jan 2019 pre covid) same job R46000 - and I'm making much less now than I was then.

    At what point will people just stop ordering work. I look at my quotes now and I'm almost embarrased....

    I ain't making mega bucks, far from it, but is it not getting a little out of hand.

    We used to do loads of shops in malls (the independants and small chains) - not done a shop since pre covid and I see most of the mall have plenty of open spaces.

    Put your running costs in (insurance, fuel, UIF, workmans comp etc - all of which has gone up) - I don't know how we are supposed to compete with the bakkie brigade.

    Not sure what else to cut to make it worth while. Feels like breaking point is fast approaching.

    People will alway need things fixing but I see new installs slowing down.

    Those little off cuts of 2.5mm that used to fall to the floor and get swept up, no way - not anymore - copper is R140+/- kg for bright near me.

    Starting to get a little concerned.

    I don't know how to do anything else and its not like there is an abundance of other jobs (espcially for a white, foreign, male - bottom of the BEE list)

    We are still very busy but its getting hard to get those jobs now and the margins are not as good.

    What all you guys and girls doing to stay afloat?

    Another year at this rate and I don't see how I'll be able to make it viable.

  2. #2
    Platinum Member Derlyn's Avatar
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    Become part of the bakkie brigade. Keep expenses down. No workshop, work from home. Downscale and survive. The sooner the better. I could never see myself running a medium to large company as things stand now.

    Not being pessimistic, just realistic.

    Peace out .. Derek Stuart.

  3. #3
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    Yup agreed. My now old boss didn't downscale in time and now has lost 4 staff and been given notice on the premises he is in... the times where great before covid and a bit post but when those big jobs finished it was just not possible to sustain all the salaries, cars, and office/workshop rent, etc.

    Very sad but it is what it is.

    Also even the customers are struggling and haggling every price and quote given.

    As for the price of material, we now have to phone every single time to get a price as it changes so much.... try to stock up from some profits but not always possible now as the cost of living and bloody fuel is taking huge chunks and school fees as well for the little one, all adds up





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  4. #4
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    Thats what I'm saying. Feels like breaking point is approaching.

    Simple small job like a "a socket" - give the customer a price and they look at me like I'm mad. The kind of jobs that used to be "fillers'

    2 meters down the wall, 2 meters up, 10 to the next socket and then socket and back box - you are on R300 and you haven't even turned the key in the ignition yet.

    One trip there to look at it, one trip to wholesalers one trip back (1 hour) - install as quick as humanly possible (chase, tube, wire and clean up) - (2 hours if you had lots of coffee). Then 15 mins/half hour invoicing/paperwork

    Add running costs and some sort of salary for yourself - I honestly don't see how its possible to do a socket for less than R1000 (excl VAT) now if you are licensed, registered, insured and paying what you are supposed to.

    Then you'll have find another job to fill the rest of the day to cover those running cost. If you have staff as well.... Well you just paid for the opportunity to install a socket for someone.

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    Agreed ! I am at the point now where every job is a whole day and priced like that, so if i estimate a 4 hour job I would quote it as the day (albeit a slightly discounted day) but still a day as there is no time left to do anything else... driving, lunch, pick up kid, perhaps go for a run, perhaps second trip to wholesale as forgot a part or what ever it is even the short comings not seen when quoting like a poor wall that makes chasing harder or the conduit you saw is actually blocked etc.



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    oh crap ... I have just finished paying the bills for Jan 2022.

    I know December was the worse month I have had in 5 years ... with wasting time isolating and all that crap ... Christmas and new year ... and companies being closed (the most used excuse at the start of this year for slow payments) ... slow payments ... shut down between the 25th and the 3rd.

    This year is certainly not started with a bang ... more like a drip from a bad bladder.

    As mentioned prices of everything has increased so much that it would require a rate increase of around 30 % to to get back to not relying on an overdraft again or increase credit card limits again

    Taking note as I do my rounds in the day ... it seems I am not the only person in this situation.

    Project which were ready to start have been put on hold until further notice.

    SO what happens now ... it time to start putting the word out that we can do anything ... from fixing gates to doing COC's and all those kind of crappy jobs. I have even considered looking at some of the large construction projects on the go ... do what I have done a lot of in the past ... final connections at the DB's, panels etc.
    Comments are based on opinion...not always facts....that's why people use an alias.

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