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  • PRO
    Sorry I'll stop now. On a serious note, work out your costs then add your going rate on top
    of this amount... don't leave yourself short, start as you mean to go on...
  • PRO
    The LJN calculator is based on 40 hours per week for 50 weeks per year.

    Holidays, sickness, training, time quoting jobs maintaining equipment and so on and so forth all need to be accounted for, so I'd suggest working on 35 hours per week chargeable time for 46 weeks per year.

    Andy
    • PRO

      As a starting point, it is only a guide. Everyone will have different circumstances and thus change specific figures to suit your own personal circumstances (working hours, holidays non-productive times etc).

    • PRO

      Yes, that's one way of doing it Andy.

  • PRO

    As Gary says, the spreadsheet is only a guide. A way to condition a way of thinking.

    You can expand it to suit your needs.

  • PRO
    Every time I work out an hourly rate I end up with a figure that looks too high, so then fall into the trap of trying to judge what the market rate is.

    I know guys who work as plumbers and gas fitters, there are guys who do both and charge different rates for each, but their overheads and expenses are constant. So charging different rates for the same person can only work if the lower rate covers everything and pays a reasonable wage, so that the premium service offered pays a bonus.

    Andy
    • PRO

      Andy

      Why not post some figures in  the BOG. Juicers may be able to help.

    • It doesn't matter if you think it looks too high... quote the fixed price to the next client who enquires (NOT how much it is per hour). 

    • PRO
      Agree with Dan here, to me it really doesn't matter what others charge, unless you are miles out on your charging ? At the end of the day only you know your costs, every firm is different and has their own expenditure. Don't leave yourself short because other companies are charging on the low side.
  • PRO

    Just one caveat on costs.

    As others have mentioned, every business has to work out its costs (whether that's a single-person operation or a multi-employee enterprise) and translate that, together with the addition of profit, into a rate at which services are sold to the client.

    It's right to say that costs cannot be out of control and then expect clients to pick up the charge.

    To be be competitive with one's peers in the same market segment one has to be in the same ball-park when it comes to charge out rates on a like-for-like basis.

    Over the years I've seen many young businesses - whose owners are relatively new to the industry - invest in brand new equipment and super-sized vans or 4x4s and come unstuck because their charge-out rate became too high for the costs they were trying to cover (or they were charging what was perceived the going rate and it didn't meet their costs).

    It pays to take a reality check and ask yourself some tricky questions....is my cost base sustainable in the industry I'm trying to achieve success?

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