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Truly Brilliant

  • Posts: 14
Lost in pricing
« on: June 29, 2010, 02:56:13 pm »
Have started cleaning and garden maintenance company and things are going well but we are still finding it very hard to get the pricing right..... HELP any ideas would be great

martin19842

  • Posts: 1945
Re: Lost in pricing
« Reply #1 on: June 29, 2010, 07:01:36 pm »
hi there,

are you lost in the time that a task is going to take? or in the price that should charge for that task ?

the latter being easier to answer.

time X hourly rate of pay + employer NI + holiday pay + % materials + % management cost + % profit = rate to charge.

hourly rate = can be anything from £6.50 upwards depending on task and local prevailing rates.

employer NI , set this at 11%

holiday pay 28 days minimum for a full time, or pro rata

% materials say 3%- 5% plus any special kit that you may hire ie access eqpt

% management cost + % profit, these are the factors that you need to determine, however if you can deliver a combined 30% to the gross profit account, then your other overheads will ideally be in at a maximum of 70 to 80 % of that 30% of that contribution.

if you can get more then great, but as jobs increase the %nett profit points will reduce.

regards

martin