Too much......

[gnu52]

Have been calculating overhead costs of my small business- renovations & building maintance.
By no means all the costs but three I am cranky about, fuel is either side of $100 tank ( weekly if working locally), compulsory insurances/licences etc $4500 pa ( not including workers comp) and accounting/ compliance costs $4000 pa
The comp varies on staff numbers, I usually work with one casual t/a but sometimes employ three tradies if the job warrants it.
Based on 1600 chargable hours pa those three overheads are costing me over $8.50 hour. Never mind the unchargable hours spent meeting tne requirements of every Tom, Dick & Harry who makes his living interfearing with mine!
I know work is busy and rates are good, but they need to be when jobs in other industries are paying the money they are. The older I

[gnu52]

Oops.. sorry about that. Major power supply problem SNAFU
I was going to say that as age slows productivity self employment on the tools is not as attractive as it should be.
Appreciate any comments from others
regards, Bill

[Exador]

Oops.. sorry about that. Major power supply problem SNAFU
I was going to say that as age slows productivity self employment on the tools is not as attractive as it should be.
Appreciate any comments from others
regards, Bill

Couldn't agree more, Bill. I've been running the timber biz as a hobby/business for soem time, but the costs of doing my "normal" business are such that I'm pretty much giving it up to concentrate on the timber. There's not as much money in it, but the paper trail is much shorter and the headaches are fewer, not to mention the satisfaction is much higher. As we run as a partnership, there aren't any employees as such and the insurance on mobile mills is low, as is the public liability when all you're doing is slicing logs - not playing about with people's houses. The only real problem we face in the milling biz is the rising cost of fuel, which is driving up costs at the same time as it is drying up markets. At least everyone is in the same boat, I guess.

[bitingmidge]

While I don't disagree on the cost of compliance and insurance, fuel is such an insignificant part of all that it really shouldn't be mentioned in the same breath.

We've seen aproximately a 50% increase over the last five years or so, maybe ten years?

For you Bill, that's about $1,800 per year. Put your rates up a dollar an hour and get some change for smokes.

... and isn't that the real problem?

When something goes wrong we all say "they should do something about that", so when they do, they bring in licenses to keep the shoddy blokes out, or to keep people safe, or to fart on site, for instance, we don't want to pay for the cost of all that. Neither do we want to be part of it, we're not the ones they are chasing after all.

Trouble is, we don't want to pay the extra money all this costs either. We're happy to have the cowboy's gone, but they now charge us to keep things that way.

So, it starts with you. Next time you go to buy something or have something made, take the second or third lowest quote.

Drive the cheapies out of business, in turn that will put all expectations of cost in the community up, and eventually you'll be making a quid again.

It's all your fault, for taking the cheapest quote all the time, and buying stuff on special!

Or just blame them.
Cheers,
P

[masoth]

About four months ago a mate took over 'the' business from his father. Now I don't listen to the mate moaning of how mean his dad has been.

Bill, I assume the costs NOT mentioned are small nagging amounts, and would not double the $8.50 - for the sake of discussion, I'll suggest $12.00 all-up. That is, roughly, what many workers get, gross.

Figures, as you've posted, need a wider publication to permit comparison. As an instance and using 48 hours per week, I get $10.50 ph - nett. Better understanding of business CHARGES may help individuals point out to politicians how this impacts and that we want change. I doubt I can afford to use your business, among many others.

[bitingmidge]

Based on 1600 chargable hours pa those three overheads are costing me over $8.50 hour.

Isn't there a mind-shift thing needed here?

They aren't consting YOU a cent. They are costing your customers.

If it wasn't for those costs, you'd be working for $8.50 an hour less, and still earning the same!

So. Why not quote your net rate, and charge a special "levy" of $8.50 per hour on top, to cover compliance costs, just like the airlines do with fuel?

Cheers,

P

[echnidna]

Is the 1600 hours an estimate or a statistic.
There can be a significant difference when you actually take the time to work it all out.

Any difference is going to affect your calculation of $8.50 per hour. And if thats incorrect, your final prices are out of whack too - or your profit is reduced.

But as long as you are in an industry where all your competitors have the same costs its likely not a huge burden rather its just a pita.

[gnu52]

1600 Chargable hours is about right for my type of work. New building allows more chargable hours cause you get on the job & stay there.
Repair work isnt like that.
The costs I mentioned are only 3 items I picked out because of recent steep increases. Anyone in business can identify the others.
I would like to meet the fellow on $12 p/h . I am paying a t/a $22 p/h on a 38 hr week & find it hard to keep one. (This equates to $27.17/hr/ chargable plus super, workers comp, sick pay , loadings etc.)
The reality is that anyone with nous who is prepared to move to a mining area can earn considerably more. Many tradies have done just that.
I charge $45/ hr plus Gst and have no shortage of work. I do however feel embarrassment at having to charge such a rate, but it is also true that builders on new work are edging toward this mark to retain profitability.
Feels to me that we are all just chasing our tails.
I would like to know how major city rates compare.

[ozwinner]

I have no hesitation in charging $80 per hour, I can easily lay 100 brick per hour, some times 200 depends on the job.

So why undercut your self?
I have rarely been out of work.....

Al

[stevebaby]

1600 Chargable hours is about right for my type of work. New building allows more chargable hours cause you get on the job & stay there.
Repair work isnt like that.
The costs I mentioned are only 3 items I picked out because of recent steep increases. Anyone in business can identify the others.
I would like to meet the fellow on $12 p/h . I am paying a t/a $22 p/h on a 38 hr week & find it hard to keep one. (This equates to $27.17/hr/ chargable plus super, workers comp, sick pay , loadings etc.)
The reality is that anyone with nous who is prepared to move to a mining area can earn considerably more. Many tradies have done just that.
I charge $45/ hr plus Gst and have no shortage of work. I do however feel embarrassment at having to charge such a rate, but it is also true that builders on new work are edging toward this mark to retain profitability.
Feels to me that we are all just chasing our tails.
I would like to know how major city rates compare.

I'm doing a casual job,labouring,for $17hr,sick pay,holidays etc included.In Sydney.
The business charges out my time at $70hr.
My brother pays tradesmen painters $24hr,charges out their time at $50hr.He's on the Gold Coast.
Show this to your t/as if they want to complain about their pay!
I applied for an adult apprenticeship...$10hr,round trip to work 80km a day,no public transport.
You definitely have no need to be embarrassed..you are paying well and charging a pretty competitive rate.
The above figures are all gross rates!