Margin

[DNgroundworks]

To settle a potential dispute....how much do people put on their materials?

I understand if people don't want to comment...

Cheers

[GB_Groundworks]

industry standard I'm lead to believe is 20%

[bobbi o]

Plant+ Labour+Materials+20%

[lutonlagerlout]

labour and materials +20-25%
LLL

[Forestboy1978]

I don't get what you mean by % on labour. You mean on employees? I just charge labour what I want to earn.

Materials always changes depending on how much I want the work.

The whole lot changes.

I charge an extra 100% on our labourer. That's generally fixed but that's the only thing

[DNgroundworks]

20 percent?? wtf! I'm getting pushed back to 10 from 15% Cheers fellas! Ill stick to my 15!

[bobbi o]

I don't get what you mean by % on labour. You mean on employees? I just charge labour what I want to earn.

Materials always changes depending on how much I want the work.

The whole lot changes.

I charge an extra 100% on our labourer. That's generally fixed but that's the only thing

Do you employ anyone ?

The Labour + 20% covers all the additional employer costs over and above their hourly rate of pay.

[Forestboy1978]

Yes we have 1 labourer. How does 20% cover 28 days annual leave, bank holidays, sick pay, the requirement for employers liability insurance, the extra charge to the accountants for payroll, etc. etc.

[lutonlagerlout]

forest boy when you get a bit bigger and your overheads increase you have to use a business model
our model in the recession was job cost to us plus 18-20% this gave us a net profit after overheads of around 10-12% which is ok if you are turning over 1/2 a mill PA

now with work a plenty and clients booked in till next summer it has been cracked up a little,but repeat business is where its at so I never go for the sting ,I have won jobs at 137k where other quotes are 200k,I am kinda thinking WTF?
LLL

[Forestboy1978]

forest boy when you get a bit bigger and your overheads increase you have to use a business model
our model in the recession was job cost to us plus 18-20% this gave us a net profit after overheads of around 10-12% which is ok if you are turning over 1/2 a mill PA

now with work a plenty and clients booked in till next summer it has been cracked up a little,but repeat business is where its at so I never go for the sting ,I have won jobs at 137k where other quotes are 200k,I am kinda thinking WTF?
LLL

When you say net profit you mean on top of what you like to earn yourself for labour or whatever you charge yourself out at?

I'm happy with my lot atm despite the huge amount of admin on top of labour I earn good money for time spent. I'm converting precisely 81% of my quotes and as I say I'm earning but a business model would be a good idea.

I just only know a limited amount about business. I'm learning a little every day.

[DNgroundworks]

Your wages are a cost, profit is what is left after everything has been paid for including your wage which you use to pay your personal bills.

After all that if you have a few quid left, you have done alright!

[Forestboy1978]

Your wages are a cost, profit is what is left after everything has been paid for including your wage which you use to pay your personal bills.

After all that if you have a few quid left, you have done alright!

Ah, I see. In that case I usually hit roughly 20% I would guess. Sometimes I only get a wage. If it goes badly I'll get less than I'd like. For me the most important thing is doing a quality job and keep turning over the work. As long as the trend is positive I'm good on the whole.

Admittedly I don't keep accurate records of every jobs cost/ profit. We do a lot of little bits and pieces which causes receipts to overlap and such and such when you're buying for 3 different jobs in one place for example. I just don't have the time to go into the minutia of it. Or more honestly, it's not where I have a natural skill or liking, so I avoid it lol.

[lemoncurd1702]

Pay yourself the same every week, regardless of a good or bad week you still have living expenses. If you have a run of good profit use it to catch up with the bad or give yourself a bonus.
Gotta treat your business and personal finances separately and bank account for each.

[DNgroundworks]

I keep a spreadsheet open on my laptop and everyday when i get home i put on the costs for the day and keep a running total along side my original price.

I prefer the paperwork side of things, doing the job is the least enjoyable bit!

[GB_Groundworks]

i work out the materials, the labour at the rate we charge for it no the cost and the machines have a set hourly rate than add 20-25% on but sometimes less just depends on the job

i charge myself at £300 a day when costing, labourers £120, skilled 150-200 e.g. so me, labourer and 3 ton and a dumber say are 650 a day on skilled commercial work this covers my time writing risk assessment, all the pep, the insurance, the planning and the longer time it takes to do things safely and correctly obtaining permits etc attending meetings etc