Thread: Pricing up a job

If they want "Cabinetry quality", bill them once at "Cabinetry quality" prices

Originally Posted by MaxWheeler

I'm going through the process of pricing up a job to build shelves and a shoe rack inside two walk in wardrobes. In my mind this job is carpentry but the client insists on, and I quote: "Cabinetry quality". Doing the job and pricing materials isn't really an issue but quite personally cabinet quality is worth more than carpentry quality where I come from.

Since I will machine the parts and build the actual cabinet off-site in my workshop and just fit it on site I was wondering if I could be sly enough to invoice them twice, since I have never done that before. Once for building it and once for fitting it. That way I figure I can explain more easily that they are paying for two different skills.

Anybody else had any experiences similar to this that I can gleen?

i would give them one price for the whole job.
You can always refer to fitting as a free offering given their expensive cabinet quality job

Get at least 50% deposit before you start
Get all of the payment before you fit it

Its called trust but verify.

Al

Lets assume that you are able to produce what the client considers to be cabinet quality (have they made it clear what they think that is?).

If the materials used are the same regardless of cabinet/carpentry quality then wouldn't the only issue be one of time. For instance, it takes longer to build the job with concealed fixings as opposed to screws and caps or nails and putty. On that basis simply work out what the extra time amounts to and charge accordingly. There is no need to try and hide how you arrived at the price, a quote is a statement of what you would like to be paid for the job as described. The client then decides whether they are prepared to pay that price.
I can't believe I am going to use a quote from the bible but, 'for the labourer is worthy of his hire'

My opinion, for what it's worth
Philip

Originally Posted by beech1948

... Get all of the payment before you fit it ...

I'm not sure you can do that - but I'm no lawyer, but as a customer I would tell you to go jump.

I would however make sure you have been paid for AT LEAST your materials cost before commencement, that way if it goes pear shaped, you are not out of pocket, and you have only blown your labour.

My concern isn't really how to price the job. I've worked for some massive companies in the day. They always invoice separately for fitting and building. The good thing about that I suppose is money flow. I get a materials deposit to cover costs. Then when it's complete and signed off by the customer they pay for entire product. Then I fit it and invoice that.

This particular client is rather keen on visiting the workshop to see the building process as it happens. Not sure why but I am totally okay with it. I will probably be fitting all this stuff when they go on holiday (as per their request, because there is a lot to fit) so I may have it sat in storage for a week or two.

To give you an ideal of the size of the job, I'm building and fitting built in furniture throughout the entire house, which has 5 bedrooms and 3 bathrooms. That also includes new kitchen and bathroom fittings. So the actual fitting process is going to take me a long time. They have two houses so while I work in one they are going to live in another.

I've never done a job like this before so it's a little odd for me. Should I maybe charge as I go for the sake of cash flow?

Cash flow is my biggest concern. This job takes almost all of my time so I don't have much spare for other little jobs if money gets tight. Heaven forbid I wind up working 14 hour days or something.

I don't know why, but my sixth sense tells me 'don't do the job' for what its worth.

Have to admit that it has never let me down

The money is damn good. It's just the space between money that might be an issue.

The people I know who run small businesses all reckon that the clients who are most likely to try to weasel out of paying the agreed price after the job is done are always the clients who are the most well-off.

My brother is a carpenter. He charges up front for materials, provides a good estimate for time and provides several lock up stages. Clients are asked to come in to view work at any stage. For longer jobs he does this every four weeks.

Good idea... I could take some sign off sheets so they can sign off the work I've done every month and then get them to pay labour. Materials upfront as per usual. I've done some smaller jobs for them and they've always paid promptly. (Occasionally with a nice tip)

Running a small business is hard, I have a few guys to look after too so money concerns me greatly all the time.

Yes, for such a large job, it sounds like progress payments are the best option cashflow wise.

For each "job" I would be asking for material cost up front, construction cost after construction is complete, and the final payment after fitting.

Originally Posted by Vernonv

Yes, for such a large job, it sounds like progress payments are the best option cashflow wise.

For each "job" I would be asking for material cost up front, construction cost after construction is complete, and the final payment after fitting.

MaxWheeler!
I agree with Vernon on this process.
Given the size of the job I would also document this process at the beginning, so as everyone knows what is expected, and get the customer to sign-off on it before you begin.
It would also be helpful to know if you have (or going to) give a fixed price quote, or allow for contingencies in the final payment?