PEP Tech ...
Get Out of the Dark with Job Costing
Fall is upon us, it's getting cooler, and days are getting shorter. Pool season is coming to an end, but light season is here. If you're looking for ways to keep busy during the cooler months? Perhaps it's time to give landscape lighting a shot.
There are many reasons to offer landscape lighting packages to your customers. Often referred to as "the icing on the cake", landscape lighting transforms a night time environment, adding beauty and appeal to an otherwise dark unusable space. It's a simple way to offer your clients an added level of safety and security. Landscape lighting can be very profitable. It's an easy way to keep busy and to increase your income stream during the slower fall and winter months.
PEP stocks and supports products by vendors who cater to the professional contractor. We only support landscape lighting vendors that aim to partner with our contractors, like Alliance Outdoor Lighting. It is imperative that our vendors don’t offer products for sale online, retail, contractor or homeowner direct. This is intended to protect the integrity of your price quotes. We don't want your clients to feel cheated, by shopping your pricing online.
For this partnership to be successful we want you, the contractor, to make as much money as you can while remaining competitive in the landscape lighting marketplace. PEP and our vendors do not aim to dictate your pricing, but we do have tools and resources available to help with pricing and job costing. Using a List Price Sheet, for example, generally yields a profit of 30-40% over your landscape lighting product investment. To illustrate this, let’s look at some approximate numbers for a 58 piece job using Alliance fixtures and 2 - 300w Alliance transformers.
|Total Approximate List Price||Approximate cost at PEP||Approximate Profit, not including labor|
As you can see you stand to profit $2600 on just product alone for a one day project. Keep in mind that these are approximate costs, but in many cases your out-of-pocket is even less. This does not include wire or extra labor charges for the installation of the step lights or other more time-consuming product installations which only increase your profit.
Another method for job costing, commonly employed by swimming pool contractors, is flat rate pricing. For some, this method can be much simpler. The national average for flat rate pricing is $200 per installed fixture. This includes all the fixtures, wire, connectors and labor to complete the project. Using flat rate pricing on the project above would have resulted in a net cost of $11,600 to the client. The resulting profit would have been $5400. This comes close to earning a 100% return on product investment. One cautionary note: some products like commercial grade fixtures, cost considerably more than others. It may be wise to group certain products into different flat rate pricing tiers.
If you'd like to learn more about offering landscape lighting to your customers or would like assistance with pricing or job costing, inquire at your local PEP branch.