How much to charge??

[Mark A]

Daniel's

Al has explained the correct and professional way to go about working out your business running costs, do this and then you can work out what you need to charge to make a reasonable living.

The way you are asking for prices ,per operation of work is not how it is generally done, unless you are working on a contract that uses a schedule of rates.

Mark

[toomush2drink]

Wish there was an edit button on here.......


I meant to say in my previous post " if your getting every job then your prices arent high enough."

[fsdhy]

Prices are not as big of a deal as you may first think. Even though I know for a fact my shop has the lowest prices in the area *NOW*... I could still tell you stories of when the old owners were marking up deadbolts and knobsets at 250% but still could not keep them on the shelves and were refusing work because they couldn't do anymore. Granted, my situation is a little different since I have only ONE other locksmith within 25km (there were FIVE at one point... look who are the only ones left, the two with the highest prices during the 90's...), but it goes to show you how much your quality of service and customer base matter much more than prices.

[Daniel's]

Ok Thanks for your your comments,
I've seeked out a business adviser. Have to do a business plan with him...
Hpoefully I know more about running a busness very soon.
Thanks again for all your comments!

p.s. anybody want to help with the build of my web??? lol

[gostone]

I am not a strong advocate of cheaper is better, you need to charge a decent rate to make a decent living. I think most people appreciate value, over lowest cost. Don't focus on being the cheapest, just the best.....
Raccoon, how can you survive charging $15.00 per hour? Most locksmiths would pay their employees that much. As an independent you would have to charge more to cover overhead.

I would rather deal with the best, than deal with the cheapest.

[ldnlksmth]

You need to know your costs before you can set your prices. Price out what all your stock is going to cost, then mark it up to be reasonable with the competition. Figure out how much money YOU need to make on labour, and how much your vehicle's going to cost you, and then make sure that your rates cover your costs.

As an example, I charge a flat rate trip in town. $45 gets me to your door and a 1/2 hr of service. Same $45 for out of town, but add $.25 per kilometer from the city limit to your door, for fuel costs.
My labour rate is $70/hr.

Don't underbid. It's sleazy and makes you look less competent. Don't overbid, because you'll price yourself out. You need to know what your local competition is charging, and be competitive. Don't forget that you have to recoup the costs of your training, tools, insurance and all of those other wonderful little things that add up to making a business go flat.

If it works out, I would start trading on the side and keep your full time job. Until you know that it's going to work out, it's wise to have a guarantee of mortgage payment.[/list]

[panalman]

Ok Thanks for your your comments,
I've seeked out a business adviser. Have to do a business plan with him...
Hpoefully I know more about running a busness very soon.
Thanks again for all your comments!

p.s. anybody want to help with the build of my web??? lol

Hi.
You have been given some very good advice from real life working locksmiths and I am sure that once the business plan has been drawn up you will stand a better chance at your new venture.

You have gone around things the way I would have done by testing the water and building up a client base before you take the next step.

Good Luck. And your website projects a very good image

[ldnlksmth]

One way to 'get in cheap' for starting up is to have the customer supply the hardware you're going to install. I've sent my customers down to the local home centre to pick out the hardware they want and then installed it for them on a flat rate basis (usually $25 per device). The packages sold in hardware stores are usually keyed alike, but you should be able to key lockss (buy a pin kit on e-bay real cheap, and cut down the handle of a wooden spoon or get a 1/2" dowel for a follower). Again, you won't make as much money, but your overhead is significantly reduced.