Do you discuss your hourly charge out rate with customers?

[john@AEC 37]

Some email correspondence

 

 

Hi John

 

Thank you for getting back to me so quickly with your quote for this work.

 

I forwarded it to the Committee who have asked me to follow up with you a couple of questions:

·         Does this quote include the back fence and if it doesn’t, how much extra would that be?

·         What is your hourly rate?

 

Thanks for your help with these.

 

 

My reply

 

Sorry, I thought (from memory) the back fence was timber so didn’t include it, but I’ll do it for nothing.

 

I don’t usually discuss my hourly rate as comparing rates between contractors is very difficult. The charge out rate is dependent upon many things including the quality and efficiency of the equipment and techniques used.

 

 

I never discuss my hourly charge out rate as (particularly) domestic clients want to compare it to their own pay rate, I'm even cautious with other building and home service contractors as this business requires on-site "free" quotes and my average job would be only 3 hours, while most others are the opposite.

 

PS. I didn't get the job. Can't will then all, especially with committees.

 

 

 

[Beth n Rod 1,279]

Doing it for nothing is something I won't do.

You are performing on someone else's property and if you aren't charging for it and it is not disclosed in a proposal, bid or estimate, you are liable for any and all damages that result.

 

Hourly rates are for employee's and lawyers. Even plumbers and electricians don't give hourly anymore. They charge by the service.

We don't give out an 'hourly' rate either. Due to the varying factors many projects will have, there is no way to really put an hourly rate on it considering there is so much more that go into costs.

 

Rod

[Alexy 85]

If you ever hear the phrase "what is your hourly rate" in a conversation about a job they are price shopping and run. All they are looking for a uniform way to quickly compare your price to someone else who has fallen for the same trick.

[John T 744]

Only once I had to submit an hourly wage on a bid. The beauty of this bid was that we were going to be paid whether or not they used us at all during the day. It was for 40hrs a week all thru the college yr. even if we did no work at all.

Major home run if I got it back then but the college decided to pass.

[Kristopher Pettitt 23]

I actually use an hourly rate, however mine is a bit more complex than just saying I charge X amount per hour. I charge by how long it's going to take me, how far the place is, how much fuel and detergents are going to cost, and then do my hourly rate. If a job is really dirty then I know I'm going to be there a long time and will price it accordingly. I factor in everything when quoting at an hourly rate. I will say that I've never had a customer ask how much I charge per hour, but I don't think I would have a problem discussing with them my rates, As long as they understand that every customer has a different price because they all want different things.

[boho444 14]

We had a condo where all stone had to be cleaned and sealed. Polishing and repairs were included if necessary. The builders requested an hourly rate for billing. If you are working for a homeowner there can be no way you can give an hourly rate. They usually don't understand the costs of operating a business.

Sent from my HTC One using Tapatalk

[john@AEC 37]

If you are working for a homeowner there can be no way you can give an hourly rate. They usually don't understand the costs of operating a business.

 

While my business pays me a salary, I always compare the hourly rate I get paid to the hourly rate I would need to pay some other employee, and the hourly rate I could be getting elsewhere. But charge-out rate is something completely different, and not something an "employee" would easily understand.

 

My business model works on me being paid by the business for 52 weeks a year for 40 hours a week (2200 hours a year), but I can only charge out about 1200 hours a year (my business is just me, so I need to include running the business and maintaining the equipment etc, as well as doing the work) so, my charge-out rate for a 2 hour house wash (which has a free on-site quote and travel time to cover) looks obscene to the person packing shelves at the supermarket, or selling white goods in a warehouse. But so would their own charge-out rate.

 

While most other home service trades (painters, plumbers, carpenters, electricians, interior cleaners) in my area do give an hourly rate, or piece rate, a competitive and open market ensures that there is very little difference between charge out rates. Of course, this says nothing about their quality or efficiency.

 

:onthego:

 

John

[Pat Norman 18]

Absolutely not! No way can a customer understand me using an 8gpm pump with the right chemicals or a big surface cleaner vs a "beer money" kid with a cheap homeowner machine and no chemical. I quote by the job and 100% satisfaction.

[DINOMADIC 0]

If you ever hear the phrase "what is your hourly rate" in a conversation about a job they are price shopping and run. All they are looking for a uniform way to quickly compare your price to someone else who has fallen for the same trick.

I agree they are price shopping, but I wouldn't run from it. It's a good chance to distinguish yourself from the others. I'm never afraid of price shopping. I can either justify my prices or I can't. Some customers just want cheap...that's not for me.

[Douglas Hicks 128]

A couple more red flags

1. How much is material cost and how much is labor cost? 

 

2. Give me the material list. I will get the material and that will save you time.  

 

3. What is that chemical and where do you get it?

 

4. How much can I save if my son helps you?

 

The answer is "Thank you for your interest in my company helping you with your service needs.  I do not think we are a good match for your needs.  Good by."

[steven 37]

Rod,

 

when submitting an estimate do you line item everything or just give them one giant price?

 

I line item everything on jobs over 2 or 3k.

[Beth n Rod 1,279]

We line item the services.

But we do not break out materials and labor.

Think about it like this. You go to a restaurant, you have an item, on a menu with a price. What you do not see are the costs of the ingredients, and the overhead for the facility and the labor.

 

Beth