Cheating People

[mekon]

I'm going to come across as a real baddie. I always charge as much as I possibly can and always double the price of any parts + VAT as a minimum. Does it affect how much work I get...... probably? But I do not do the job because I love it or for the good of my health. I work for myself to earn as much as I can so that I can have good lifestyle and put money aside for the future. I don't really want to be working unsociable hours and travelling god knows how many miles a day forever, hopefully my little Villa on the Med isn't that far away. I don't force anybody to use me and I advertise my prices so people know exactly what their getting. I don't think I rip people off; I would go so far as to say that some of my competitors do the trade a great deal more disservice than I do, by not charging realistic prices and doing it more as a sideline.

 

[paulw]

Double + VAT does seem insane, you're kind of preying on people's ignorance of pricing there.

 

[l337]

well it maybe insane but least if some people out there charge that much it makes other peoples prices look better thats one way of looking at it lol.

im more inclinded to belive if u charge less but still fair u get more buisness and that in turn works out better financially but idk im only a tech not a buisness owner lol

 

[gunslinger]

People like this are the reason I have so much business. 10 customers at $35 per hour is > than 2 customers $100 per hour, even more so when they are very loyal.

 

[Majestic]

so next time you go there are you going to charge her only $15 again? That is a bad precedent to set. I have an hourly minimum and I charge that for all calls.



This is exactly what I do. I explain "You've paid for my services for an hour. Is there anything else that I can do for you? Speed up your computer, examine any crashes, check your antivirus software???

EXACTLY! That's what I do too. I've gone to houses to fix printers before when the whole issue was they were out of ink. I told them the problem and said well you have me for the hour, is there anything else I can do for you? They said no. Paid me my $50 and off I went. You gotta get paid for your time (minimum 1 hour).

 

[Majestic]

If you dont charge at least an hours worth while onsite, even for a 10 minute job you are only hurting yourself because the better you get (and thus quicker) the less you get paid where it should be the other way.[/QUOTE]

Bryce I love that quote. Could not have explained it better myself!

Viruses that used to take me 3 hours to properly clean I can now fix in 20 minutes. I'm certainly not going to charge 20 minutes.

Majestic

 

[mekon]

Double + VAT does seem insane, you're kind of preying on people's ignorance of pricing there.

I don't think so. I am the one who has to have the back office, foresight and organisation to have the parts in stock and with me so that I am able to do the repair.
If I am able to establish the model before I go on a call I rarely have to make a second visit because I had to return to base for a part.
Why is my knowledge worth any less than that of a motor mechanics? Why should the mark-up ratio be any less than a garage for parts?

Finally the doubling of prices + VAT is very subjective because it depends of course on what you are paying for the parts in the first place.

One of my competitors buys memory from the local PC World and goes and gets it after he has opened up the box; so typically a small job can run into a couple of hours yet he is only charging what I would charge for my call out fee. He is subsidising every job he goes on.
He is well liked and has a reputation for being cheap but I cannot see the sense in it; to me he is nothing more than a busy fool.
If you want to do charitable works do it with something that matters like the starving in Africa or something.
Not subsidise every well heeled person who wouldn't think twice about paying the same amount as your bill on a meal out.

 

[mekon]

People like this are the reason I have so much business. 10 customers at $35 per hour is > than 2 customers $100 per hour, even more so when they are very loyal.

I understand the sentiment but surely a more realistic approach would be.
1 day (9-5 less lunch) = 7hrs * $35 an hour = $245
2hrs * $100 = $200
$245 - $200 = $45
That additional $45 is also going to be reduced by greater overheads. more wear and tear on body, mind and equipment.
I am not saying your wrong but I am glad it's you and not me. $35 an hour equates to about £24 an hour. I charge £50 an hour after the first hour which is £70 to include mileage. The first hour doesn't start until I arrive.

 

[gunslinger]

I understand the sentiment but surely a more realistic approach would be.
1 day (9-5 less lunch) = 7hrs * $35 an hour = $245
2hrs * $100 = $200
$245 - $200 = $45
That additional $45 is also going to be reduced by greater overheads. more wear and tear on body, mind and equipment.
I am not saying your wrong but I am glad it's you and not me. $35 an hour equates to about £24 an hour. I charge £50 an hour after the first hour which is £70 to include mileage. The first hour doesn't start until I arrive.

I think the main differences are I love what I do and would be working on computers even if I was not getting paid. Where as you seem to be trying to get rich of off fixing computers even thought your not really into it at the expense of customers.

$35 per hour here is more than most of the people make in my state. I have no overhead, so its a very good living. My wife also brings in over $46,000 per year as a teacher. I could not sleep at night knowing I was ripping my customers.

You have a big pay off from a few customers and thats great, but if they are smart they will shop around after the first time and find someone who can do the job for less than half what you charge. After a while you will either have to relocate to find new business or find a new profession. With the way I do it, I'll make less money per customer but I'll get many loyal customers who will gladly hand out my cards to all of their friends and family. This brings even more business and long term success.

This may not work every where. Maybe You live in a place where people over pay for everything and expect high prices, but around here you would never, I repeat , NEVER get called out.

 

[mekon]

$35 per hour here is more than most of the people make in my state. I have no overhead, so its a very good living. My wife also brings in over $46,000 per year as a teacher. I could not sleep at night knowing I was ripping my customers.

You have an overhead (everybody does) it's just that you are not adding it into your charges. Your wife is picking up the tab instead. I don't mean that in an insulting way. I mean what would happen if your wife wasn't able to go to work for any reason and your work was your family's sole means of support; would you still be able to charge the same prices as you do now and maintain the same or at least a decent standard of living? If the answer is yes, you are in a very fortunate position because to all intents and purposes you are saying that you have a surplus of $46'000 each year less taxes. If the answer is no; then you are undercutting your competition by virtue of the fact that your wife has a well paid job. I'm not saying your wrong, I am saying very few people are in that fortunate position.

 

[gunslinger]

Overhead= shop front, advertising, loans for my business, ect. I have none of these expenses. Bills that would have to be paid anyway ( house, elect, phone ect. ) are not overhead.

Your example makes no sense because If anyones wife or husband left them they would have a drop in family income. If my wife could not work for what ever reason we would do just fine, although with such a cut in income there would be a drop in life style. If either of us could not make it on our incomes alone then we are living beyond our means.

If you were married you would understand this. If you have your life style set up like you have $100,000 per year income, and 50% of this is from your wife, if she leaves you your income just dropped by 50%. Do you start charging 50% more than your already ridiculous prices to make up for it so you can maintain your high life style? No. You sell the BMW and get a Honda, you eat out once a week instead of 5 times. Its called common sense.

I think you are simpily trying to justify you high prices.

 

[seedubya]

I have to come in on Mekon's side here. He's 100% correct. Squeeze every drop you can from every customer without alienating them and without conning them. You and I have similar cirucmstances, Gunslinger. We're both in relatively rural areas, we both have kids, we both work from home etc. etc. I charge 3 times what you do. If I worked for someone else I'd need to get a salary of €100K + benefits just to match what I have now and I would not be building MY business. I can take a day off whenever I like, I have 6 weeks holiday per year, all my motoring expenses are paid and my business has a value over and above what I earn. Things have slowed down but all that means to me is less gravy. I only need to bill 10 hours per week to break even (since I recently reduced many of my outgoings to the bare minimum). I can still afford to go on a 3 week/20k holiday starting 25th of April! (Orlando here I come )

Oh yeah, v. important lifestyle thing I can do because of what I charge. Our 3 kids are now home-schooled. They are no longer brainwashed and dumbed-down by the state indoctrination system because my wife can now afford to not do paid work outside our home.

 

[mekon]

If you were married you would understand this. If you have your life style set up like you have $100,000 per year income, and 50% of this is from your wife, if she leaves you your income just dropped by 50%. Do you start charging 50% more than your already ridiculous prices to make up for it so you can maintain your high life style? No. You sell the BMW and get a Honda, you eat out once a week instead of 5 times. Its called common sense.

I think you are simpily trying to justify you high prices.

For the record I am married, my wife works doing stuff for charities etc but nothing that brings in any dosh although in fairness she does answer the phone and do invoicing for me. I am not trying to justify anything. I stand by my prices; I look to turnover £100k a year. This is my sole income. It has to pay for everything including my extravagant lifestyle. I'm glad you bought up that bit about common sense;the trouble with it is, it isn't very common. In fact it is in very short supply.

 

[mekon]

I can still afford to go on a 3 week/20k holiday starting 25th of April! (Orlando here I come )

Jammy beggar

 

[seedubya]

Jammy beggar

envy is a sin, young man.
BTW are you THE Mekon (of Mekonta)?

 

[mekon]

envy is a sin, young man.
BTW are you THE Mekon (of Mekonta)?

That's me mere mortal. I'm just a bit low on Treens at the moment. Your right about the envy of course but it isn't the reason I'm green.

 

[gunslinger]

I can see another dateline special about both of you in the works.

 

[seedubya]

@gunslinger - that went over my head, sorry
@hisawesomenessLordMekonofMekonta - nice to see that you're back, have you gotten rid of Dare yet?

 

[mekon]

@hisawesomenessLordMekonofMekonta - nice to see that you're back, have you gotten rid of Dare yet?

Dare is a virus like all earthlings and all viruses will be eradicated.

 

[gunslinger]

I still think your prices are far too high and the more prices of computers drop the more business you will lose.