Pro Focus LLC | 09/22/15 12:32pm
It all greatly depends on the level of effort you are going to when running cable and the level of detail in your design/work/etc. If you are just sloppy with wiring and are throwing up fixed cams and get what you get design mentality, then you are probably over charging.
However, if you are taking the time to conceal your wire as much as possible, using best practices, using a well designed plan to give best coverage and detail, then I think you would be inline or slightly below our pricing.
We figure a two man crew is about $1000/day in labor. We find that our labor component is usually equal to the hardware costs. We know we stayed on budget when that 50/50 balance is met. That is just a rough guide, all jobs not being equal, but it is a quick litmus test for the average project.
What is the profit margin you are aiming for? For instance, if you watch those TV shows like "The Profit" and stuff, I think they usually say you have to be somewhere around 50% to 70% marging to really survive? But not sure how that translates to both a product sale and installation/service structure. Maybe another topic....?
"We markup the product enough to cover overhead costs associated with procuring, shipping, inventorying, and managing the product. We have NO margin on product whatsoever; all of our margins are in labor, it limits our exposure to loss."
Wow. How would this limit your exposure to loss? And do you not offer any warranty at all on the product? What happens if it fails in 30, 90, or 120 days? Factory warranty only and charge for depot service if they want it?
Thanks for replies all good coments. Some aspects i didn't take in consideration in those coments.
Client always signs contract with disclosure on UPS and power conditioner for protection. IMO warranty service can kill you on jobs, quarterly maintenance is always discussed along with additional labor costs like acts of god, customer changing ISP, etc. You're on line with 50 percent profit margin minimum, naturally based on business model. I have a guy who is one of the best installers of attic wiring with residential, I just tell him how it goes and hand him drives rings and supervise.
Level of effort is not always rewarded however, to combat any skepticism depending on your effort belief system, always provide some referrals to ease your customer. Take some pictures of previous installations it shows confidence, they do all the talking. My motto get what you pay for let the pictures speak for themselves. Put a painters tarp on the floor at attic stairs...bla bla bla