# Slab Leaks



## voltatab (Jan 2, 2010)

Hey Guys,
Im new to being a business owner and so far a difficult thing for me is estimating.

I was wondering, for the southern ca area, how would I find out what price range plumbers are falling into? I know what my company charged, but I never really knew where it fell in terms of other companie's pricing. 

Example: We charged anywhere from $1200 to $1700 for a leak detection and re route that would be finished same day, lets say about 4-6 hours start to finish, with a helper)

What do you guys think? I recently heard a guy tell me his company comes out with a minimum charge of $2400 detection and reroute. Seemed high but what do you think?

Thanks


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## rocksteady (Oct 8, 2008)

I'm relatively new to being self employed also. What I've learned, and you'll hear it a lot around here, is to price jobs according to your cost of doing business. DON'T price them based on what everyone else is charging. 






Paul


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## Plumber Jim (Jun 19, 2008)

Fisrt thing you need to know is what you cost of doing business is. Do you know that?


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## voltatab (Jan 2, 2010)

good advice, i guess i dont really know. I will have to sit down and look at that. 

My only concern is that my cost of doing business right now is pretty cheap. So, I can afford to do certian jobs for a lot less than the other guy with an office and Payroll, emplyees and trucks. Yet what hapens if i get to a point where I become the other guy and all I have is a customer base, with like minded referrals,(like minded in price) that want me to do work for the price that the beginner me gave? Not sure if that even makes sense but it was a thought.


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## ILPlumber (Jun 17, 2008)

A long time ago I bought, "Where did the money go?" By Ellen Rohr.

Good book for the guy trying to figure total cost of doing business. Don't forget to pay yourself.

pm me your name and addy and I'll dig the book out and send it to you.


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## SewerRatz (Apr 25, 2009)

ILPlumber said:


> A long time ago I bought, "Where did the money go?" By Ellen Rohr.
> 
> Good book for the guy trying to figure total cost of doing business. Don't forget to pay yourself.
> 
> pm me your name and addy and I'll dig the book out and send it to you.


I have to see if my public library has a copy to give it to my father. He sort of understands what I try to tell him about knowing the cost of doing business, but he needs to read it if you know what I mean.


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## Plumber Jim (Jun 19, 2008)

voltatab said:


> good advice, i guess i dont really know. I will have to sit down and look at that.
> 
> My only concern is that my cost of doing business right now is pretty cheap. So, I can afford to do certian jobs for a lot less than the other guy with an office and Payroll, emplyees and trucks. Yet what hapens if i get to a point where I become the other guy and all I have is a customer base, with like minded referrals,(like minded in price) that want me to do work for the price that the beginner me gave? Not sure if that even makes sense but it was a thought.


 
Figure out the cost of doing business with growth in mind. basicly plan some money in there for growth which will cost money. So if you know that you want to get a better truck next year figure that in this years budget so that by the end of the year you have the money to buy it. Do you know your cost of doing business? I know you figure you have a lower overhead than alot of the others but do you know what your overhead is? It's pretty easy. You can use a pen and paper or a spreadsheet and start with your pay and anyone elses pay that answers phones or helps with paper work etc. then go from there till there is nothing left unaccounted for. then add what you need to grow. then don't forget profit. Oh don't forget a budget for fixing your truck and upkeep on tools. really think about that then come back and we can go from there.


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## ILPlumber (Jun 17, 2008)

SewerRatz said:


> I have to see if my public library has a copy to give it to my father. He sort of understands what I try to tell him about knowing the cost of doing business, but he needs to read it if you know what I mean.


It lays it all out in very simple terms.


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## voltatab (Jan 2, 2010)

Im glad I found this site, you guys are very helpfull. ILPLUMBER, I may have to take you up on seding me that book but I will check to see if its at a library near me first, no need to to inconvenience you if I can find it here ! Thanks

I will have to really plan out what my overhead is now, plus where I want to be eventually, thanks. Looks like I have to do some homework


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## ILPlumber (Jun 17, 2008)

I have not read the second one. They are around $9.00 each used on Amazon dot com


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## ILPlumber (Jun 17, 2008)

voltatab said:


> Im glad I found this site, you guys are very helpfull. ILPLUMBER, I may have to take you up on seding me that book but I will check to see if its at a library near me first, no need to to inconvenience you if I can find it here ! Thanks
> 
> I will have to really plan out what my overhead is now, plus where I want to be eventually, thanks. Looks like I have to do some homework


Lemme know. It won't cost much to send.......... I'm done with it anyway.


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## M5Plumb (Oct 2, 2008)

Do you know how cheap *YOUR* cost of doing business is? Pretty cheap is relative to the thoughts of not having any associated costs beside fuel, parts and what I make on the back end. Oh, lets not forget licensing, insurance and the bonding? Well for starters, nuff said there. Good luck.



voltatab said:


> good advice, i guess i dont really know. I will have to sit down and look at that.
> 
> My only concern is that my cost of doing business right now is pretty cheap. So, I can afford to do certian jobs for a lot less than the other guy with an office and Payroll, emplyees and trucks. Yet what hapens if i get to a point where I become the other guy and all I have is a customer base, with like minded referrals,(like minded in price) that want me to do work for the price that the beginner me gave? Not sure if that even makes sense but it was a thought.


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## M5Plumb (Oct 2, 2008)

Both very good books, eye openers for sure...:thumbup:



ILPlumber said:


> I have not read the second one. They are around $9.00 each used on Amazon dot com


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## Master Mark (Aug 14, 2009)

*Seweer Rats, I feel your pain....*



SewerRatz said:


> I have to see if my public library has a copy to give it to my father. He sort of understands what I try to tell him about knowing the cost of doing business, but he needs to read it if you know what I mean.


I know what you are going through Sewer Ratz....

I watched my dad work his ass off for new home builders
only to lose his ass a dozen times... only to do it again and again 

then he expects me to fill his shoes too doing the same thing all over again..........:no::no:

fighting me every step of the way....

my father would go out with a helper (3 years ago) 
and work half a day and charge the lady 45 bucks, 
and then get into a pissing contest with me when I said 

"well at least you broke even today dad" 

I finally made it a rule to just mail the customer a bill
instead of letting him collect on the job....


it is not your fault... 
they get stuck back in the 60s
and think they are makeing big bucks.


and they cant let go 
and you become someone to prove wrong........

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I just recently bid a total re-pipe on a slab leak ....

others in town want 1600 just to find a leak and repair tha t one leak only , not including colloratol damage....

I was gonna have to re-pipe everythign over-head with
wirsbo and then get someone to box in the ovbious areas tha tit will be seen...

I told them 3500, and I really dont care if we get the work or not...it was gonna be a thankless and mean job...


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## jeffreyplumber (Dec 7, 2009)

*good topic*

I dont work all the time for myself. Mostly for other contractors. I know from the past though you do a little job here and there put the money in your pocket and think were making money. Many people in construction and service trade are highly skilled but far fewer are good buisness men. Even the best of plumbers cant nessesarily do that well without buisness knowledge. So learn what you can from whoever you can. I certainly know now I should have stayed in school...


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