View Full Version : Pricing Strategy

17-03-2011, 09:23 AM
Following on from discussions on another thread (http://www.refrigeration-engineer.com/forums/showthread.php?27249-What-did-we-do-today&p=225516#post225516) I thought I would make a new post to save the other going OT.

Would any other small UK based contractors like to discuss (by PM) their pricing strategies?
It does seem sometimes that maybe as small companies we are a little bit detached from what the normal market rate is for our services.

As mentioned in the other thread recently I have quoted 2k for a job where others have quoted 4.2k
An ex customer used to tell me the prices to quote, a recent example would be 35k for a VRF job that I perhaps would of priced at 25k.

I know you should set your prices at a level that works for the profitability and sustainability of your company, but hey.......we are in business either because we are un-employable or because at one time we thought we could make some money at it.

Has anyone any thoughts?

As a start off say, How much for a MEUK, 7kw cassette, std inverter. 15m pipe run in an occupied office. To do a good job, call it two days work. Pipe on cable tray, gravity drain, mains supply by others, outdoor unit at 3m height.



charlie patt
17-03-2011, 07:44 PM
you have to quote what makes a sustainable profit we need to make a living keep the customer happy and do a job good enough to keep there work also is there any other work involved what you are quoteing on like do they have a chain of shops, how well do they pay is also a key question, somebody will always do it cheaper but is that the type of market to chase? as far as a 7 kw mitsi add all cost of parts and unit labour and add percentage of profit you work on ta charlie

monkey spanners
17-03-2011, 08:37 PM
Kit at list price, materials at cost, same with tower scafold and genie lifter if needed (bit out of the loop on ac sizes)
250 a day labour. Used to mark materials up 30% and 300 a day but times are hard.

We are too cheap, but there are cheaper people out there, so what can you do?

I'm now starting to put prices up for equipment and labour which at the moment is 30 ph for breakdowns after our recent visit to the accountants, need to start making a living again instead of just slowly sinking....

17-03-2011, 11:12 PM
Not directly connected to your question Eggs, but sometimes i will let charges slide if i get a call that is not time consuming, such as appraising a commercial 2 door that is 5mins away. As the customer was not sure as to whether he should fix it or replace it, by giving him answers and moving on without any cost to him, will leave a good impression. If he doesn't get it repaired, then so be it BUT the foot is in the door for the next time something else breaks down..Mike.