profit ratio

S

southernpoofter

Guest
Hi guys...quick question aimed really @ the bosses.ive got a QS meeting later with ref to a 20m truss out out of a top floor office block windows over the thames & lower fragile roofs which we were asked to do quickly & on a sunday.....all went well & complete but when i put the invoice in this morning he turned white.
Now i know noone would wanna put prices in on here butif you were doing the job what type of profit margin would you be looking at for it....i know we all want as much as we can lol but ive only gone for15% ver the costs to do the job which i thought was low. So i'd appreciate any feedback either open or pm ....thx SP
 
Is this profit or contribution to overhead? if it is overhead it is reasonable - if not a little cheap. If it is profit you will be in for a rough ride on everything you do.
Best practice is never admit to more than a 2.5% profit but up to a 25% o/h contribution to running the business.
 
I would say that they cant moan at that,but surely they had the costing prior to the job going up?
 
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---------- Post added at 12:01 PM ---------- Previous post was at 12:00 PM ----------

Very reasonable SP I think they're trying it on.
 
Bigfish gives a good lesson here. If you are going to do an additional item price it up and get an order in writing prior to starting. contract is then in place.
 
bigfish said:
I would say that they cant moan at that,but surely they had the costing prior to the job going up?
Click to expand...

Due to the speed it all happened then no just a guesstamate but the client was screaming as they need possession by wk today & no-one had thought how the vent engineers were gonna access external of the gable....they needed it done & i was happy enough to obilge. But when i worked the price backwards from the guesstimate it only covered the costs so had to increase it to make some profit without takng the piiss

---------- Post added at 06:18 PM ---------- Previous post was at 06:06 PM ----------
Binthere said:
Bigfish gives a good lesson here. If you are going to do an additional item price it up and get an order in writing prior to starting. contract is then in place.
Click to expand...

No lesson as theres was no additional work & as a valued client to us for more than 10 years we're there to help.....we've started many jobs prior to the completion of contracts etc & never been bumped - i dont think the cost is excessive due to the complexiy of the job,time frame etc....but the QS still has to justify his extra o the client - noone minds anybody makng a profit-after all thats why we're in business....its just profiteering hat gets there hackles up, when i explained the costings to him he was fine....sometimes you just query urself, so it was good to get the feedback from the forum to help the justification of the price.
Thanks everyone
 
southernpoofter said:
Due to the speed it all happened then no just a guesstamate but the client was screaming as they need possession by wk today & no-one had thought how the vent engineers were gonna access external of the gable....they needed it done & i was happy enough to obilge. But when i worked the price backwards from the guesstimate it only covered the costs so had to increase it to make some profit without takng the piiss

---------- Post added at 06:18 PM ---------- Previous post was at 06:06 PM ----------



No lesson as theres was no additional work & as a valued client to us for more than 10 years we're there to help.....we've started many jobs prior to the completion of contracts etc & never been bumped - i dont think the cost is excessive due to the complexiy of the job,time frame etc....but the QS still has to justify his extra o the client - noone minds anybody makng a profit-after all thats why we're in business....its just profiteering hat gets there hackles up, when i explained the costings to him he was fine....sometimes you just query urself, so it was good to get the feedback from the forum to help the justification of the price.
Thanks everyone
Click to expand...

All's well that ends well SP,though you do feel that your integrity is being questioned when these situations occur,and I've met many a Q.S. who'd gladly have us work for nothing,how often do we have to concede hard earned money at final account just to get paid within a reasonable time frame:suspicious:
 
I lknow what u mean BF - seems to be happening more & more as well.the conversation i had was very much along those lines & finished wiv the phase if i'd only wanted to earn £150 on the job than i'd just as well jack the company in & go work for someone else ...get that in wages without all the agro lol

Ps dont know what formatbthat email was in but couldnt open it...am guessing it was the finished document

---------- Post added at 10:22 AM ---------- Previous post was at 10:21 AM ----------

I lknow what u mean BF - seems to be happening more & more as well.the conversation i had was very much along those lines & finished wiv the phase if i'd only wanted to earn £150 on the job than i'd just as well jack the company in & go work for someone else ...get that in wages without all the agro lol

Ps dont know what formatbthat email was in but couldnt open it...am guessing it was the finished document

---------- Post added at 10:24 AM ---------- Previous post was at 10:22 AM ----------

I lknow what u mean BF - seems to be happening more & more as well.the conversation i had was very much along those lines & finished wiv the phase if i'd only wanted to earn £150 on the job than i'd just as well jack the company in & go work for someone else ...get that in wages without all the agro lol

Ps dont know what formatbthat email was in but couldnt open it...am guessing it was the finished document
 
Ps dont know what formatbthat email was in but couldnt open it...am guessing it was the finished document

No mate,it was the generic cantilever along with lots of others,i thought it was in pdf,i will try again but I cant promise I can do it:blink:
 
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