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Pricing question?
This thread has 27 replies. Displaying posts 1 through 15.
Post 1 made on Wednesday December 4, 2013 at 09:21
Dave in Balto
Super Member
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We all have our hourly rates for integration based on our market, overhead, level of service etc..


My question is about work out of our main scope. I just put electronics in for a theater in an existing room, now the customer wants to turn it into a real theater. I'd like to do crown, columns, seating riser, panels, granite, etc….

In the past I've used one of my contractors and have charged for my design and consultation time. Now I have an employee that worked for one of my contractors and can do all of the work in house. How do I charge for this, contractors don't charge integrator rates and I don't charge carpenter rates. is it worth it, or should I just sub it out like normal?
Hey, careful man, there's a beverage here!

The Dude
Post 2 made on Wednesday December 4, 2013 at 09:49
Hi-FiGuy
Super Member
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What a fantastic service to offer in house!

My concerns are, is your massive investment going to be worth it in the long run?

Its awesome you have somebody that can do it NOW, but what does the future hold if he/she leaves?

Would you find somebody else to fill the shoes or would you shut it down?

This would be opening another business within you business and would have to be kept separate from the rest.

Do you have the space to build all the pieces that would have to be separate from your electronics for dust control.

What kind of regulatory issues are you going to incur with finishes and dust control. I know in So Cal varnishes/paint/finishes in a business are a mother regulatory wise. And you WILL be unannounced inspected.

As far as how to charge you would have to monitor every minute of every aspect of the jobs to build a base of efficiency of said employee, costs and ALL time involved. Compare that with previous bills from other companies. Hopefully they have itemized break down of labor and material and you don't have a bill that says "build and install theater 10k".

I think what you want to do is a great service to you clients, but will soon turn into a very daunting, but rewarding task.

I hope you don't think you are just going to buy a table saw and a router and start making this stuff tomorrow because you have a "guy".

Go for it, Rock & Roll. Its part of my ultimate shop visions.

Do your homework.
Post 3 made on Wednesday December 4, 2013 at 22:19
ceied
Loyal Member
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5,753
Build outs got charged at out regular rate.

So wether we are building custom upholstery risers mason work it all got billed at regular rate.

My last rate was $110 hour normal rate
Anything that required a computer was 150 per hour
Ed will be known as the Tiger Woods of the integration business, followed closely with the renaming of his company to "Hotties A/V". The tag line will be "We like big racks and tight holes"...
Post 4 made on Wednesday December 4, 2013 at 22:41
Stryker
Long Time Member
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402
Agree with Ed. Whatever your rate is it's your rate

Your paying your guy the same rate weather he frames or programs right so your rate shouldn't change
"If they give you ruled paper, write the other way"
Post 5 made on Wednesday December 4, 2013 at 22:42
Hasbeen
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5,274
Everything should get charged at regular rates.  I don't understand the whole concept of 1 rate for this, another for that.  Don't make no damn sense. 

That's all I got. 
Post 6 made on Wednesday December 4, 2013 at 22:49
Hi-FiGuy
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Guess my mind got way ahead of me when I read the OP, started thinking way ahead.

Yes the value of your time does not change with the task you are performing. You know your time/profit margins.

If you are at 150 and your carpenter is at 50 then you either have your answer or really need to sell the value of all in house to the client.
Post 7 made on Wednesday December 4, 2013 at 23:22
3PedalMINI
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7,860
Your rate man, I do framing-molding- and some custom carpentry and even cabinetry but only when were slow and can bring on the work. Larger stuff always gets a sub we work closesly with...

I regularly sell crown molding as a easier way to route wires around a room with no crawl space or attic..Its a money maker and i really enjoy doing it. But there is a point where doing it in-house doesnt make sense for you or the client.

I have won jobs just because i handled the entire process from beginning to end (except paint )

I have also sold jobs with better speakers or a full 5.1 surround sound where it was only going to be a soundbarr because i offered the crown and the wife is always like "whoa, ive always wanted crown molding in my room"
The Bitterness of Poor Quality is Remembered Long after the Sweetness of Price is Forgotten! - Benjamin Franklin
Post 8 made on Wednesday December 4, 2013 at 23:28
Bonavox
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2,349
Whoa........I read your thread title and instinctively thought maybe you were wondering what you should be compensating Brendon's mom.
Bill's Electric & Home Theater & Plumbing & Automation & Small Engine Repair, and Animal Removal Services......did I mention we do remotes also?
Post 9 made on Thursday December 5, 2013 at 19:59
brucewayne
Advanced Member
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March 2006
895
If you can do the work to a high level do it .

Your higher rate will cost them more money but they will only have to deal with one company instead of 2. That is saving them time and stress and they have to pay for that. Your normal rate
brucewayne
Post 10 made on Saturday December 7, 2013 at 10:45
Anthony
Ultimate Member
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28,873
On December 4, 2013 at 09:21, Dave in Balto said...
We all have our hourly rates for integration based on our market, overhead, level of service etc..

My question is about work out of our main scope. I just put electronics in for a theater in an existing room, now the customer wants to turn it into a real theater. I'd like to do crown, columns, seating riser, panels, granite, etc….

In the past I've used one of my contractors and have charged for my design and consultation time. Now I have an employee that worked for one of my contractors and can do all of the work in house. How do I charge for this, contractors don't charge integrator rates and I don't charge carpenter rates. is it worth it, or should I just sub it out like normal?

I am not sure of your question? does a wire puller, designer, remote programmer, every employee..... all cost you the same? do you charge the same? Same here.
...
Post 11 made on Saturday December 7, 2013 at 22:21
Ranger Home
Super Member
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3,486
As a customer I would laugh if I got an estimate to build a riser out of simple 2x12's and plywood at $125 per hour! Come on people, that's not even realistic.

Having owned a construction company, we DO offer TOTAL service for build outs. Turn key, EVERYTHING from framing, drywall, electrical, all of it. We CAN do most of it ourselves and have. However, we sub out some things like drywall, as its a pain in the ass.

That said, also will just sub it out and have a management fee on top of the quotes that WE obtain for the customer. We do the drawings, manage and hold responsibility.

More often than not lately we DO sub it out because we're too busy and it actually takes away from making more money elsewhere. Now, if we could get away with charging $125 for painting a wall or adding a piece of trim about something it would be different. However, if you have the manpower, capability and time then its a nice, profitable, add on business/service. For me, I have no desire to charge $125 for some menial labor that can be found anywhere for $45 or even less. But, that's just me. If you can get away with it and feel you offered a valued service, then by all means charge away. As the end user I would feel gutted. And gutted HARD.
Post 12 made on Saturday December 7, 2013 at 22:22
Ranger Home
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Dave, call anytime. I have lots of experience in ventures like this.
Post 13 made on Saturday December 7, 2013 at 22:35
ceied
Loyal Member
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stop spending with your wallet and mindset, and spend with the clients...

damn right i'd get our normal rate for slinging 2x12's or dry wall patching...

when the $400 an hour lawyer charges you $400 an hour regardless if its the lawyer or the assistant... i see zero issues
Ed will be known as the Tiger Woods of the integration business, followed closely with the renaming of his company to "Hotties A/V". The tag line will be "We like big racks and tight holes"...
Post 14 made on Saturday December 7, 2013 at 23:14
Zohan
Super Member
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September 2010
3,096
On December 7, 2013 at 22:35, ceied said...
stop spending with your wallet and mindset, and spend with the clients...

damn right i'd get our normal rate for slinging 2x12's or dry wall patching...

when the $400 an hour lawyer charges you $400 an hour regardless if its the lawyer or the assistant... i see zero issues

Wham
Enough said!
Post 15 made on Saturday December 7, 2013 at 23:38
Ranger Home
Super Member
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3,486
Sorry, I cant and wont charge $125 to hammer a stud in. Its not about spending with someone elses wallet. Its about being moral and doing the right thing. To each his own.

I can charge $800 for a remote because I AND the client sees the value. I have yet to meet the customer that sees the value in a $125 per hour menial laborer. Now a cabinet maker or something of more skill, yes, of course. A laborer with a paint brush to do a solid wall, not so much. Again, good for you if you get $125 for that! Congrats.
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