2013 ELECTRICAL CONTRACTING CHARGE OUT RATE SURVEY. Western Australia Report
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1 2013 ELECTRICAL CONTRACTING CHARGE OUT RATE SURVEY Western Australia Report
2 Charge Out Rate Survey 2013 Western Australia Report Benchmarking your business against others is a useful way to stay competitive in the marketplace and stay one step ahead. That s why Master Electricians Australia has developed this 2013 Charge Out Rate Survey Report. The figures indicated in this report allow you to compare your business rates (including charge out rates, service fees, travelling fees and mark-ups) with those of your peers. It is an invaluable business tool when planning for your business in the coming 12 months and assessing your performance over the past 12 months. Part 1 Business Profile COMPANY SIZE The percentage of respondents by business size is as follows: 5.13% 7.69% 25.64% 10.26% 33.33% 1 staff 2-5 staff 6-10 staff staff staff staff staff 17.95% Master Electricians Australia 2013 Charge Out Rate Report - National Page 1
3 AGE GROUP The percentage of respondents by age group is as follows: 7.69% 2.56% 30.77% 30.77% Under Over % MEMBERSHIP TENURE The percentage of respondents by membership tenure is as follows: 5.13% 2.56% 20.51% 71.79% Less than 12 months 1-3 years 4-10 years Over 10 years Master Electricians Australia 2013 Charge Out Rate Report - National Page 2
4 MEMBERSHIP SERVICES The percentage of respondents who are Accredited Master Electricians and/or SafetyConnect subscribers is as follows: 80% 70% 60% 50% 40% 30% Yes No 20% 10% 0% Master Electricians Accreditation SafetyConnect Subscriber BUSINESS LOCATION The percentage of respondents located in a metro or regional area is as follows: 38.46% 61.54% Metro Regional Master Electricians Australia 2013 Charge Out Rate Report - National Page 3
5 TYPE OF WORK The percentage of respondents operating in the following types of work is: 100% 90% 80% Commercial 70% 60% 50% 40% 30% 20% 10% 0% Domestic Industrial Small / medium construction Major construction Solar Power poles Service / Maintenance Energy management Fire detection Asbestos Refrigeration Air conditioning Hazardous location HV Home automation Home theatre / AV Data networks Domestic security Commercial security CCTV security Pay TV Marine Other Domestic Commercial Industrial Small / medium construction Major construction Solar Power poles Service / Maintenance Energy management Fire detection Asbestos Refrigeration Air conditioning Hazardous location HV Home automation Home theatre / AV Data networks Domestic security Commercial security CCTV security Pay TV Marine Other Master Electricians Australia 2013 Charge Out Rate Report - National Page 4
6 Part 2 Charges and fees CHARGE OUT RATE FACTORS The percentage of respondents who consider the following factors when working out their charge out rates is: % 40.54% 70.27% 67.57% 64.86% 40.54% Industry Average Customer expectations Overheads Wages Profit margin Calculated over expenses Other % CHARGE PER HOUR OR QUOTE PER JOB The percentage of respondents who charge by the hour or quote per job is: 2.7% 21.6% 5.4% 21.6% Equally charge per hour & quote per job More often charge per hour More often quote per job Only charge per hour 48.7% Only quote per job Master Electricians Australia 2013 Charge Out Rate Report - National Page 5
7 IDENTIFYING CHARGE OUT RATES TO CUSTOMERS The percentage of respondents who identify their charge out rate to their customers is: 0.0% 32.4% 18.9% 48.7% Identify hourly charge rate when quoting Identify hourly charge rate when invoicing Don't identify hourly charge rate Identify their hourly charge rate on request only SERVICE FEES The percentage of respondents who charge a service fee, in addition to hourly rates is: 13.5% Don't charge a service fee 5.4% 2.7% 5.4% 73.0% Charge a service fee between $1-25 Charge a service fee between $26-50 Charge a service fee between $51-70 Charge a service fee over $70 Master Electricians Australia 2013 Charge Out Rate Report - National Page 6
8 TRAVELLING TIME The percentage of respondents who charge an additional fee for travelling time is: 16.2% 16.2% 10.8% 43.2% Don't charge an additional travelling time fee Charge a flat fee for travelling time Charge an hourly fee for travelling time Charge per kilometre for travelling time Other 13.5% EXPENDITURE The percentage of respondents whose expenditure on the following areas has changed compared to 12 months ago is: 50% 45% 40% 35% 30% 25% 20% 15% 10% Less Same + 10% + 25% + 50% 100% + 5% 0% Materials Labour Overheads Master Electricians Australia 2013 Charge Out Rate Report - National Page 7
9 MATERIALS SPEND Respondents indicated the following spend per month on materials: 0.0% 8.8% 35.3% 17.7% 20.6% $2501-$5000 $5001-$10,000 per month $10,001-$25,000 per month $25,001-$50,000 per month Over $50, % AVERAGE MARK UP % ON TRADE PRICE MATERIALS Respondents indicated the following mark up percentage on the trade price of materials: 2.7% 10.8% 18.9% 5-10% Markup 11-20% Markup 32.4% 21-30% Markup 31-50% Markup 35.1% 51-80% Markup Master Electricians Australia 2013 Charge Out Rate Report - National Page 8
10 CHARGE OUT RATES The average charge out rate per hour for each employee for different types of work is as follows (includes GST): Sole Trader /Partner Supervisor /Manager Trades person Trade Assistant 1 st Year Apprentice 2 nd Year Apprentice 3 rd Year Apprentice 4 th Year Apprentice Team - Apprentice+ Tradesperson Clerical Worker Domestic $94.21 $ $96.79 $70.00 $38.78 $45.35 $55.82 $66.70 $ $84.75 New Residential $88.83 $ $91.91 $70.00 $28.00 $38.71 $47.14 $61.88 $ $93.00 Commercial $ $ $ $78.95 $40.96 $50.07 $54.38 $65.22 $ $83.80 Construction $92.90 $ $97.65 $78.30 $43.59 $49.85 $61.36 $71.53 $ $77.33 Industrial Maintenance Air Conditioning & Refrigeration $ $ $ $80.00 $45.26 $50.43 $58.97 $66.73 $ $99.00 $80.00 $99.00 $94.76 $68.25 $38.63 $50.17 $62.67 $73.00 $ $77.00 Data & Communications $ $ $ $48.61 $50.29 $59.39 $71.97 $97.50 $99.00 Appliance $92.83 $99.00 $89.40 $65.00 $41.50 $48.50 $55.50 $65.83 $ $99.00 Master Electricians Australia 2013 Charge Out Rate Report - National Page 9
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