Profit on jobs.........

[[email protected]]

hi all

 

we have diversified over the last 18months or so into more landscaping etc.

what im wondering is, how do you guys build profit into your jobs?

ie, do you have materials +30% to supply your profit or labour +30% for your profit margins?

the reason im wondering as ive never had an issue with the tree work as its price for the job, end of.

But with landscaping clients often want a breakdown of the quotation to compare etc etc, this is where I feel I risk becoming unstuck by exposing my profits etc.

Advice would be great

PS im not asking how to price for jobs as I know that, just how you build your profit into the job etc.

[Lyncombe-climber]

Just put 15% on material and 15% on labour

[Lyncombe-climber]

Also 30% is a big margin !!

[[email protected]]

thanks LC that's the route Im currently using.

just takes the P*** when the customer goes "ive seen that for blah blah cheaper on the net"

my response to these such responses is "we only install quality from our suppliers"

but then I worry that due to this response I may loose this job to joe blogs that'll work for a dime and not be concerned about profit margins, quality of his work blah blah .

[Fenland]

Personally we don't put any mark up on materials these days.

 

All our quotes clearly break down exactly what materials and type of installation the customer is getting/; but the figure given is a total and there is no breakdown into materials and labour elements.

[Lyncombe-climber]

I completely understand mate. There's a lot of people like that round here. But I find 16 - 18% margins of total job price work for me round here. Never have an issue.

 

Just put on a job sheet. The works to be carried out. The time frame. And the cost. Simples.

[[email protected]]

Personally we don't put any mark up on materials these days.

 

All our quotes clearly break down exactly what materials and type of installation the customer is getting/; but the figure given is a total and there is no breakdown into materials and labour elements.

 

So basically your total is all in inc. your profit.

how do you get around the minority of customers who like to see whats in your quote etc or are they just told that's the price all in !lol

[[email protected]]

I completely understand mate. There's a lot of people like that round here. But I find 16 - 18% margins of total job price work for me round here. Never have an issue.

 

Just put on a job sheet. The works to be carried out. The time frame. And the cost. Simples.

 

brill thanking you pal.

only posted as I nearly came unstuck the other day with a drainage job and the client already knew the ball park figures involved with the materials.

so was to see how the rest gets around these challenging situations, as im not the best when it comes to the gift of the gab.haha

[Fenland]

So basically your total is all in inc. your profit.

how do you get around the minority of customers who like to see whats in your quote etc or are they just told that's the price all in !lol

 

Yep thats about it.

 

I work out cost of materials, cost of labour and then add the profit we are looking for. This total cost is then the number that goes on the quote.

 

On the quote is also listed the materials, the spec and the scope of the work but there is no breakdown into the old material and labour scenario.

[ukminch]

If I get questioned about the materials I explain that the client is welcome to source them and have them delivered, but they are in turn responsible for any down time I experience if they mess it up!