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Curious what would be a good rate to charge?
This thread has 40 replies. Displaying posts 1 through 15.
Post 1 made on Tuesday April 18, 2017 at 21:22
gerard143
Advanced Member
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956
I'm curious what you guys would charge clients (ballpark) to replace 5 wired smoke alarms with nest protects and replace two thermostats with nest. Then setup everything and add them all to nest app etc.

Am I too low at $450 labor? That's only $60 per smoke alarm and $75 per thermostat. I feel like I am not charging enough when I look at it broken down like that....heck not charging enough across the board I feel like a lot lately after jobs.

Trying to figure out a good way to estimate all my jobs and not lose out on labor. Seems like things always take longer then expected and I wind up making too little.
Post 2 made on Tuesday April 18, 2017 at 21:42
Mac Burks (39)
Elite Member
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I think the 60 v 75 thing is confusing. I would make it $70 per hour/device ($490) or $75 per hour/device ($525). Or hell...$95 or $125 an hour (what i think is our industry standard).

I think its fair to estimate 1 hour per device. If you count up procurement/unboxing/removal of boxes/installation/setup & testing etc you are usually around 1 hour per device.
Avid Stamp Collector - I really love 39 Cent Stamps
Post 3 made on Tuesday April 18, 2017 at 21:51
roddymcg
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On April 18, 2017 at 21:42, Mac Burks (39) said...
I think the 60 v 75 thing is confusing. I would make it $70 per hour/device ($490) or $75 per hour/device ($525). Or hell...$95 or $125 an hour (what i think is our industry standard).

I think its fair to estimate 1 hour per device. If you count up procurement/unboxing/removal of boxes/installation/setup & testing etc you are usually around 1 hour per device.

I find so many people forget about what it takes to do a job when estimating time. I hear so many times that something should only take an hour (pick any time frame). I usually respond this might be true if you were standing there with all tools/parts in hand, and have no clean up afterwards.

I also suggest, whatever time you think something will take you. Double this, and then you are 1/2 there.
When good enough is not good enough.
Post 4 made on Tuesday April 18, 2017 at 22:44
Stryker
Long Time Member
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402
Sounds like a days worth of work to me. Drivetime unboxing etc. app time. Password etc. training
I'd do $1k.
"If they give you ruled paper, write the other way"
Post 5 made on Wednesday April 19, 2017 at 00:46
Brad Humphrey
Super Member
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2,586
One thing to caution!!!
Unless you already know the wiring of the old thermostat, do NOT assume anything. Your 1 hour for thermostat install, could turn into 2. Or a lot more if you are not up to speed with HVAC systems and controls.
Also, you didn't mention anything about the time to set them all up in the Nest app (on a customer's device) - which inevitably they won't remember any passwords for anything creating hours of additional waiting and fumbling around.

Yes, your price is to low!

Me:
1) Average .75 hour per device, .75 hour setup & cleanup, 1 hour programming and demonstration. That's 7 man hours. This assumes compatible wiring at thermostat and compatible system. This also assumes good wifi & network already in place.
2) Make SURE the customer understands the wiring at the thermostat (or type system) could cause additional labor or no installation at all.
3) Make SURE the customer understands most people's networks are BS and can cause problems with installation and future function. And that an upgrade of the network might be in order.
4) Make sure the customer has ALL their info ready ahead of time. And all devices to be programmed are fully charged. Failure on their part to do all of that, will result in additional hours of labor. Make this point VERY clear to them before the appointment.

Last edited by Brad Humphrey on April 19, 2017 00:53.
Post 6 made on Wednesday April 19, 2017 at 02:36
ErikU
Long Time Member
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January 2015
151
I work in a different, but related industry, so I can relate to the issues and concerns on pricing.

I'd suggest that everything takes 2-4 times as long as you might think at first. I'd suggest going in at maybe 3x your best guess. You will probably have to justify this to your client. Explain that you are accounting for all the little things that can be difficult and suck time. Explain that you have accounted for this up-front based on your experience, and also explain how you are providing a premium service. Be sure to follow-through with the premium service by going above and beyond.
Post 7 made on Wednesday April 19, 2017 at 08:24
Archibald "Harry" Tuttle
Advanced Member
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May 2009
972
We would charge our standard $125/hr for one guy to dick around with something like that... but would probably pass on the job because of the liability down the road of servicing 7 Nest POS products.
I came into this game for the action, the excitement. Go anywhere, travel light, get in, get out, wherever there's AV trouble, a man alone.
Post 8 made on Wednesday April 19, 2017 at 08:57
davet2020
Senior Member
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February 2005
1,051
We would tell him that our labor rate is $125 per hour. We would say that we feel to do the job properly then it will take about 10 hours, which is a worse case estimate. If everything goes great and we only need 8 hours then we will reduce the final invoice.

This way the customer has an incentive to provide all passwords and pay attention to the training so that we don't have to go over it multiple times.
If you are going to do the job...why not do it the right way?
www.fairfaxavi.com
Post 9 made on Wednesday April 19, 2017 at 09:39
Fred Harding
Super Member
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3,456
What does it really, really cost you or your employees to do the job? Certainly, understanding what others may charge might help influence you numbers, but what are your labor costs? Insurance, non productive hours vs. productive hours, vacation, support staff costs?

That's an important factor in deciding what you want to charge; folks who are still in business might say the most important factor.
On the West Coast of Wisconsin
Post 10 made on Wednesday April 19, 2017 at 10:15
goldenzrule
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Do you guys install your own T-Stats? I refuse to. I will supply them when needed, but I always have their HVAC company install them. I explain that the Tstat is part of an entirely different system that we do not support, just communicate with, and that they will want whoever supports that system to install them. Have never had anyone question that.
Post 11 made on Wednesday April 19, 2017 at 10:44
kgossen
Super Member
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March 2008
3,026
You also have to factor in the fact that within a year, they're no longer your customer. Every time there's a problem with one of THEIR products, you get to come and service for free! If you charge, they won't be your customer much longer. Every single problem will be because of YOUR installation, not the wonderfully fantastic products they purchased.

They're DIY products for s reason, let them do it themselves.
"Quality isn't expensive, it's Priceless!"
Post 12 made on Wednesday April 19, 2017 at 11:02
AZCS
Long Time Member
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On April 19, 2017 at 10:15, goldenzrule said...
Do you guys install your own T-Stats? I refuse to. I will supply them when needed, but I always have their HVAC company install them. I explain that the Tstat is part of an entirely different system that we do not support, just communicate with, and that they will want whoever supports that system to install them. Have never had anyone question that.

+1
Post 13 made on Wednesday April 19, 2017 at 11:15
ichbinbose
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On April 19, 2017 at 10:15, goldenzrule said...
Do you guys install your own T-Stats? I refuse to. I will supply them when needed, but I always have their HVAC company install them. I explain that the Tstat is part of an entirely different system that we do not support, just communicate with, and that they will want whoever supports that system to install them. Have never had anyone question that.

I always recommend that they use the HVAC company to install the TSAT. I am happy to integrate the Nest TSAT into their control system and considering everything it can do and that its not tied to one control system I prefer using them.
Post 14 made on Wednesday April 19, 2017 at 11:37
radiorhea
Super Member
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May 2002
3,264
On April 19, 2017 at 10:15, goldenzrule said...
Do you guys install your own T-Stats? I refuse to. I will supply them when needed, but I always have their HVAC company install them. I explain that the Tstat is part of an entirely different system that we do not support, just communicate with, and that they will want whoever supports that system to install them. Have never had anyone question that.

This is the right answer. Stick to the stuff we can warranty, let the other pros do their thing.
Drinking upstream from the herd since 1960
Post 15 made on Wednesday April 19, 2017 at 11:49
westcojack
Long Time Member
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July 2009
90
++++1 Goldenzrule

​We have had situations where there were not enough t-stat wires pulled, or connected, and luckily had the HVAC guy doing the install. (He can charge them directly.)

​Make sure you charge enough to program the items (maybe $ 300-400), but not be responsible for the HVAC system.
Jack Goldberg, PE
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