1964 wrote Here's my 2p worth.
And here is my ten bobs worth.
Tuesday, this week you wrote in, as little boy lost, seeking advice on a price for your extension, as you had no idea whether you were on your head or your a**e, with regards to the quotes you had received.
Two people, Noseall and Freddy Merc, who both have a wealth of building experience, both kindly free of charge gave you an opinion as what to budget for.
Two days later, and after a couple of discussions with some one or other you are back as Mr Knowall, in as much as you feel the price should be £25k.
That is fine by me fellow, I wish you every success if you can do it for that figure, but let me educate you why a small good reputable builder can not compete with that.
Lets take a small builder, building couple of houses and couple extensions a year. Trying to keep 3 lads employed for 52 weeks a year and a subby sparks and plumber when needed.
He has possibly got them on p.a.y.e. so he has national insurance contributions to pay, weeks holiday Christmas, two weeks holiday summer. plus Bank Holidays.
Insurance, Public liability, Employers liability Contractors all risk and believe me, all risk costs an arm and leg.
He has got the levy to pay to C.I.T.B to go towards the barmy training schemes introduced by the government.
NHBC subscriptions every year.
He has got a J.C.B, a 3 tonne 360, a lorry and a couple of vans, scaffold, mixers, small dumper plus all the junk accumulated. So he has to pay a substantial rent for a small secure yard, plus he has had to buy all that lot.
All the vehicles have to be insured for business use, any driver. Thats not cheap fellow.
He has got possibly £3k of hand and power tools, and they don’t grow on trees.
He is VAT registered so he employs a women two days a week to keep the books up to date to pay the VAT man every quarter.
He employs an accountant at the end of year to audit books and for cooperation tax. His far from being cheap either.
If it is raining, snowing or freezing and no work is done, then it is his loss.
If BCI does not turn up until late in day for inspection of say foundations, and day is lost it is his loss.
The time spent in builders merchants and petrol used, picking up materials is his loss.
The time spent pricing your job is his loss.
I could go on and on, but just two more things I want to say. Discounts are based on what we spend, and to be competitive if we get 25%, we take 10% and pass the other 15% on to client, allowed for in our quotation.
Next time you go to Tesco, ask them if they will arrange an account at their suppliers so that you can bypass them with your shopping.
Its like last week a fellow phoned up for a price for extension and said he had had fourteen quotes so far, but was unable to afford them. Was it you by any chance?
Every success in your venture.
old un.
And here is my ten bobs worth.
Tuesday, this week you wrote in, as little boy lost, seeking advice on a price for your extension, as you had no idea whether you were on your head or your a**e, with regards to the quotes you had received.
Two people, Noseall and Freddy Merc, who both have a wealth of building experience, both kindly free of charge gave you an opinion as what to budget for.
Two days later, and after a couple of discussions with some one or other you are back as Mr Knowall, in as much as you feel the price should be £25k.
That is fine by me fellow, I wish you every success if you can do it for that figure, but let me educate you why a small good reputable builder can not compete with that.
Lets take a small builder, building couple of houses and couple extensions a year. Trying to keep 3 lads employed for 52 weeks a year and a subby sparks and plumber when needed.
He has possibly got them on p.a.y.e. so he has national insurance contributions to pay, weeks holiday Christmas, two weeks holiday summer. plus Bank Holidays.
Insurance, Public liability, Employers liability Contractors all risk and believe me, all risk costs an arm and leg.
He has got the levy to pay to C.I.T.B to go towards the barmy training schemes introduced by the government.
NHBC subscriptions every year.
He has got a J.C.B, a 3 tonne 360, a lorry and a couple of vans, scaffold, mixers, small dumper plus all the junk accumulated. So he has to pay a substantial rent for a small secure yard, plus he has had to buy all that lot.
All the vehicles have to be insured for business use, any driver. Thats not cheap fellow.
He has got possibly £3k of hand and power tools, and they don’t grow on trees.
He is VAT registered so he employs a women two days a week to keep the books up to date to pay the VAT man every quarter.
He employs an accountant at the end of year to audit books and for cooperation tax. His far from being cheap either.
If it is raining, snowing or freezing and no work is done, then it is his loss.
If BCI does not turn up until late in day for inspection of say foundations, and day is lost it is his loss.
The time spent in builders merchants and petrol used, picking up materials is his loss.
The time spent pricing your job is his loss.
I could go on and on, but just two more things I want to say. Discounts are based on what we spend, and to be competitive if we get 25%, we take 10% and pass the other 15% on to client, allowed for in our quotation.
Next time you go to Tesco, ask them if they will arrange an account at their suppliers so that you can bypass them with your shopping.
Its like last week a fellow phoned up for a price for extension and said he had had fourteen quotes so far, but was unable to afford them. Was it you by any chance?
Every success in your venture.
old un.
