A Plumbing Pricing Guide for Plumbers
This subject has become probably the most important
part of running a plumbing contractors business, it also seems that
consumers have also become increasingly inquisitive about how plumbers
calculate charges for plumbing works.
Maintenance Plumbing Rates
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I have asked many plumbers, How do you work out your
hourly rates ? the common answer usually is that they don’t really know
how to calculate the rate, so they ask their mates !! Read on and if you
use this method you will be surprised to find out what your hourly rate
should be !!
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List all your expenses such as your office costs,
staff salaries, tel/fax, printing, postage, computer equipment,
marketing and advertising, PAYE, UIF, plus lights and water costs,
council rates, bank charges etc …
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Calculate your vehicles running expenses, monthly
repayments, tools, and equipment costs, including short term insurance,
overalls, geyser check lists, and plumbing compliance books ….. TOTAL
MONTHLY EXPENSES
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Assume the total hours worked in one month is equal
to five hours a day X 22 days ….. TOTAL 110 HOURS
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Take your total expenses and divide by hours worked
and that will be the actual cost of your hourly rate, on top of which
you must add your profit margin.
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Contract Plumbing Rates
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The best method to quickly calculate a tender price
for plumbing contract work is to use the pie chart method, using fixed
percentages and various labour ratios to suit the complexity of the
labour cost of the works
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1. Material costs plus markup |
50 % |
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2. Labour costs X AVE Ratio 2
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25 % |
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3. Add overheads
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15 % |
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4. Add Profit
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10 % |
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TOTAL COST OF THE CONTRACT WORK
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100 % |
Markup is the amount of time the contractor needs to
take off quantities order/collect/and handle materials.
Average ratio is time allocated for standard plumbing
installation work, however it can be adjusted above or below the average
to suit the complexity of the on site labour costs and site works.
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