Hourly Rate Vs Day Rate

[Tigris]

Hi guys,

i've just done a job that has taken me 1.5 days to complete due to multiple issues out of my control.

Obviously with any trade there's an hourly rate but I am aware 14 hours x my hourly rate seems quite extreme. Do you tend to have a day rate for longer jobs as I have heard people in other trades doing this?

In my trade the hourly rate is £60-£80/hour in my area.

Thanks

 

[SillyBill]

It is the value of your time, only you can decide that. Personally if you are taking 1.5 days and the balance of the half day becomes unbillable (for no fault of your own) then you still have to eat...so you charge out accordingly. Fortunately I have managed to avoid dealing with the public my whole life though as most business people understand these simple things. £50.00 to change a light bulb seems like good value to me when I think of the business costs of doing a petty job like it. To Joe Public then it is daylight robbery.

 

[Deleted member 335660]

I assume the client knew your rate before you started. So if you can justify the 1.5 days then do so. Not sure where you get 14 hours from. Surely it is either a 7 or 8 hour day making it 11 -12 hours.

 

[Tigris]

I assume the client knew your rate before you started. So if you can justify the 1.5 days then do so. Not sure where you get 14 hours from. Surely it is either a 7 or 8 hour day making it 11 -12 hours.

They do know the hourly rate. I spent a full day then extra replying to support tickets, setting things up with outside companies they also use. It's a case of something the client had setup without knowing full details so I had to do a lot of chasing around for details etc

 

[estwig]

The problem is what can you do with half a day left over?

Charge two days labour, it's reasonable.

 

[Assistant Advice]

If they had signed up knowing the hourly rate, and you can justify the 14 hours, then you should bill accordingly. If you really feel uncomfortable charging that amount you could always offer a discount (marked clearly on your invoice).

As for hourly rate versus daily rate, yes, some companies do offer this type of rate. Look at the type of client you expect to take on, how much time you would normally expect to need to complete the work, and then what the difference would be if you were charging 7 hours @ X or a day rate @ X. What is the difference - are you comfortable with the difference? You also need to consider that this type of situation could occur again in the future, so what would your response be then?

 

[Karimbo]

This is quite personal. down to what you feel comfortable with. Hourly rates are ususally far in excess of what an employed person will make for the same job because they have allowances for prep time and time required to look thinks up. So there is a reasonable amount of time you have to ignore in your billing because your hourly rate is 3x of a PAYE employee.

 

[Deleted member 335660]

The problem is what can you do with half a day left over?

Charge two days labour, it's reasonable.

Well it depends on the contract. If you say it will take 1.5 days and that is what is agreed, then so be it. It is a bit like a Dentist charging you for a full days work just because it took him 2 hours and he had nothing to do the rest of the day. If half days are a problem then stop charging by the hour.

 

[Karimbo]

Well it depends on the contract. If you say it will take 1.5 days and that is what is agreed, then so be it. It is a bit like a Dentist charging you for a full days work just because it took him 2 hours and he had nothing to do the rest of the day. If half days are a problem then stop charging by the hour.

that's ususally refelected in the pricing. Get any builder in and they charge £50-£100 an hour for small jobs because they can do 2 small jobs in a day max. Had an builder in to fix some downlights and handrail, cost £200 in labour alone was done in 3 hours. £200 is probably their day rate as well. Quids in if they can get 2 small jobs like mine in a day.

If they are experience and well prepared and are stocked with the common essentials they can get in and do the job and finish it in one go and might do 3 of these small jobs in a day.

Just got quotes from a photographer, £40 an hour or £200 day rate. I don't know if they will work flat out for 8 hours on a day rate though.

 

[Deleted member 335660]

that's ususally refelected in the pricing. Get any builder in and they charge £50-£100 an hour for small jobs because they can do 2 small jobs in a day max. Had an builder in to fix some downlights and handrail, cost £200 in labour alone was done in 3 hours. £200 is probably their day rate as well. Quids in if they can get 2 small jobs like mine in a day.

If they are experience and well prepared and are stocked with the common essentials they can get in and do the job and finish it in one go and might do 3 of these small jobs in a day.

Just got quotes from a photographer, £40 an hour or £200 day rate. I don't know if they will work flat out for 8 hours on a day rate though.

Yes this seems a rip off. As for photographer's my grandaughter does wedding photography and earns every penny, surprised at the hours it takes editing.

 

[Bob Morgan]

Firstly, you need a 'Range of Rates' to work with! - This will be the calculation of your BASE RATE - Which is essentially the Salary and Overhead Components - Your RAW COSTS! Profit then becomes a separate issue based upon Risk, Client, Payment Record, Programme, Resources, Difficulty of the Job, together with various other criteria, etc, which is then ADDED to the BASE RATE! It then becomes a question of some Arithmetic (NOT Mathematics) and also 'Gut Feeling!' - Essentially YOU decide! YOU also decide whether this is Hourly Based or Daily!

To put things into perspective the Hourly Rate for an 'Unqualified Office Boy' at a firm of High Street Solicitors will be around £120 Per Hour! - And, 'Just for Fun,' add another 20% VAT! Grease-Monkeys at Mercedes, BMW and Volvo charge around the same for doing an 'Oil Change!'

Personally, I do work for certain Regular Clients at less than 10% Profit. However, for those who appear 'Dodgy' the Profit Premium can exceed 30% and the Billing Frequency will be more regular too. As soon as payments begin to slide, we STOP WORK! - That is 'Nailed' into the Contract from Day One!

You really need to look at this in a much more 'Global Context,' rather than concentrating upon Fixed Hourly Rates and Day Rates - It also involves the Contract/Agreement that you have with Clients/Customers.