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hughstary · Joined: 21 Oct 2003 Posts: 30 Location: Hampshire

I am starting up a plumbing business (on my own at present), and I have not been completely consistent in how I price jobs. Quite often I have quoted a fixed price and then suffered because the job has overrun, either due to incompetency or to unforseen issues.

I have produced estimates for larger jobs with many unknowns, but I was wondering where you would draw the line between giving a firm price and giving an estimate - any rules of thumb ?

Thanks

Hugh

ITPC · Posted: Sun Jul 04, 2004 4:09 pm Post subject:

Hugh,

I think customers like a fixed price quote. If you are not fully booked then I would suggest that you keep with the fixed price quote. As you gain more experience you can adjust your quotes.

If you get the material costs reasonably correct but lose a little on the labour then you are on the right track. I would not look at this as incompetency but on-the-job training.

Also keep an eye on how many quotes are being accepted. 100% is too high and probably indicating that you are too cheap and not going to cover your costs / make a living!

Lastly, allow for the occassional 2nd visit to correct a dribble, replace a defective part etc.

Hope this is useful.

hughstary · Joined: 21 Oct 2003 Posts: 30 Location: Hampshire

Very useful - and reassuring !

Thanks for your help.