hi guys/plumber, it`s getting harder and harder to win jobs we are still in a recesion and down here in ch-ch with fletchers calling all the shots there is little chance of putting rates up,cheers

We are pricing commercial work on the hourly rates we charged 4 years ago - and still not winning much at all.  Domestically we have lifted our rates over the last couple of years and don't seem to have had any negative feedback.  There are plumbers out there working on 5% margin on materials and hourly rates of $55 - I don't know how they run their businesses.  There are definitely days when I think it would be better to stay home and not bother. 

There are plumbers out there working on 5% margin on materials and hourly rates of $55 - I don't know how they run their businesses. 

this is where we are at - we were getting 30-40% of priced work - we are now down to 10-15% of priced work


we have to be super efficient - we have an older vehicle fleet, vehicles 5-10yr old (no flash new hiaces or hiluxes), freehold business premises helps, dont spend hrs per day at merchants - most gear is sorted day before and dropped to yard for the following day - things like that


but you are right - effectively running at cost - it is getting to the point of why bother?

hopefully when chch does kick off proper it will lure some tradies there freeing up some jobs and margins...

The economic climate is having an effect but I feel the greatest impact on legitimate business is the black market.  Our compliance costs for CPD, Licensing, ACC, OSH etc are continually on the increase and we are told to factor it in to our chargout rate to the consumer but the "under the table guys" don't have those costs and undercut us by 50%.

Obviously the customer will go for the saving rather than the legality.  I believe the Government have lost the plot in imposing on the legitimate business as those businesses are on the decline as the black market takes over. Not only will the public loose their protection but the government misses out on GST and tax etc.  Perhaps it is time for the customer to be prosecuted along with those working outside the law.

We are 1.5 hours from Auckland and have noticed a big increase in the number of plumbers (and builders etc) coming from Auckland. There's no way on earth they could be making any money when you take the time and petrol into consideration. With so much time lost in travelling  it takes a very long time for the work to get done.

Unfortunately all of this is true.  We had a call from someone two days ago wanting us to go and turn on their gas after a pressure upgrade.  It wasn't one we had a record of and so some more digging turned up the fact that this guy had got a "plumber" to put in his hob but needed it certified and then the gas turned on after the pressure upgrade and so he had told the gas company we were his gasfitters.  We talked to him and said we were not prepared to certify "someone" else's work, and that he needed to go back to the bloke that did the job in the first place and tell him he had a legal obligation to certify the job he had done.  The potential customer thought we were being harsh, and said it was only a bit of paper, what was the harm.  Turns out the guy that did the work isn't a "plumber" either - but an exemption holder, currently on a benefit, and undercutting legitmate business owners.  Now did the customer knowingly employ an unlicensed person?  And if reported would the Board take that person to Court?  I believe they can, but whether they would or not is another matter.  The guy at the end of the chain now has an installation that may not be safe or legal, and certainly I think his insurance company would ask questions.  We, along with other legitimate tradespeople missed out on a job - and this guy who installed it doesn't have to pay licence fees, upskilling or tax - he's certainly on to a winner. 

One of my vehicles has over 200KM on it, I'm crossing my fingers it will get through 2013  .

I agree with the comments above, the GOVT should be taking cash jobs very seriously. At the end of the day Its costing us our work. I don't even blame every 2nd consumer for asking me "will you do cash?", the hourly charge has increased by over 30% in the last 7 years and the margins halved! Many people tend to decline the quote and attempt it themselves. So who really is benefiting in this circle of love?

I wish I could drop my rates and increase the profit margin so the consumer is not scared away with rates we must charge to keep going.