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 Post subject: pricing jobs
PostPosted: Wed Feb 07, 2018 5:25 pm 
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Hi all, any help/advice on pricing work.

I'm just starting out on my own as a builder. I've been in the trade almost 20 years but always worked for other people. I can do all aspects of building but will be concentrating on extensions and alterations.
my question is where do I start on pricing? I understand that there is a sqm rate that most builders use but how is this broken down and how much profit can you work out from this?
As an example I recently priced a job that was a rear kitchen extension with utility which wrapped around to the side to a full length garage. the extension part I quoted at £1000 perm2 and the garage I priced at £400 perm2. I added the velux windows as extra to this and costomer is paying for garage door and bifolds. my price included knock through, steels, electrics and plumbing complete to a plastered finish. supply and fit kitchen not included.
I was over their budget with my final sum so they are looking at what to shave off to get into their budget. I want to see what I can still earn if I agree to go in a little lower but don't know where to start.

Any help is much appreciated.


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 Post subject: Re: pricing jobs
PostPosted: Wed Feb 07, 2018 5:43 pm 
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A grand a square metre is way too cheap now. 1.5k a metre is the going rate in an average town now.
City prices are way more.

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 Post subject: Re: pricing jobs
PostPosted: Wed Feb 07, 2018 5:50 pm 
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that's what I thought to be honest. my rate was going to be 1200-1400 after I had a couple under my belt as a portfolio.
Starting to think their budget is not realistic and I can't be budging too much on that price


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 Post subject: Re: pricing jobs
PostPosted: Wed Feb 07, 2018 5:59 pm 
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I can't comment on pricing building work, but I priced plenty of furniture.
Client's budgets aren't always realistic.
It's nearly always a mistake to cut into your profit. Offering something less expensive (never "cheaper") as an option is OK.
Personally I wouldn't start off working for less. It's difficult to charge more, but easy to charge less. Easy to get a reputation for being cheap too.
Better having one week's work for a decent profit, than two weeks work for the same profit.
Ignore any promises of "more work later"



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 Post subject: Re: pricing jobs
PostPosted: Wed Feb 07, 2018 7:11 pm 
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Theres to many undercutting or buying their work, you might be better of , if you have an account with travis perkins use their free pricing system.
Or use online estimators.



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