Help esitmating costs associated with my own unit?

[Phill Fenton]

Gas and electricity will depend on how well your unit is insulated. We moved from a 1000 sq. ft unit to an 1850 sq ft unit a few years ago and the price of our energy actually went down due to a combination of greater insulation (it was a brand new unit) and Alison shopping around for the best deal she could get for electricity. So well worthwhile changing energy suppliers to get a better rate. Our water bills went up though – they calculate the bill as a factor of your rateable value – so the bigger the building the more they charge even if you don’t use any water (ours is metered) they still hit you with a colossal drainage bill (which is nonsense really but that’s the system). You can find out what your water bill will be by quoting your rateable value to the water utilities compnay you use. Again worth shopping around (In scotland there is only one provider – Business Stream who rip every one off – it’s time some competition was introduced to keep these crooks in check..but I digress).

As a starting point I would look at your old bills and factor these up pro rata. Then any savings you can make mean extra profit for your business.

[David Hammond]

Cheers Phil.

Problem is I don’t have any previous bills to compare to. It feels like a massive jump into the unknown… Having to pay not just more rent, but bills, without an idea what to expect.

I think water runs the same way round here with 1 company responsible for the drainage/sewerage etc.

The units brick walls, steel roof, so not well insulated. There some stud walling up that is insulated with insulation on the roof. Which I intend to keep, and just heat the office space I will occupy. The workspace where the machinery will be will not be for now, until I get a feel for bills.

I can’t get a price for electricity until I sign the lease… There’s no gas supply, and I’ve spoken to a telecoms company I know regarding phone/internet.

This utility bills for the business is all new to me, our flat is on a pre-pay meter so never give a second thought at home.

What kind of things should I be asking, looking out for when signing up with them?

[Lorraine Clinch]

Hi Dave, you sound as though you are moving into my unit, except that there is no electric, I am going to have to buy it off my neighbour 🙄
Fortunately he has been a good customer of mine in the past……or maybe it will be his ‘payback’ time…. 👿
Anyway, I am sure it will work itself out eventually, and good luck with your new premises.

Lorraine

[Kevin Flowers]

David
allow between £250 – £350 for your water bill subject to usage its normally paid 6 monthly, electric up to £200ish subject to your heating. I run 3 computers, Roland Soljet, 2 vinyl cutters with 2 people working. Lights on permanently under mezz floor etc
The high figures are the highest i have had with being in the unit for the past 2 years, i have gas heating.
Hope this gives you an idea of what your costs should be

Kev

[Martin Pearson]

Couple of points David, firstly the 450 service & insurance charge will just be for buildings insurance so you will still need to sort out & pay for your own contents insurance as you probably already do.
Secondly ask if there are any other charges you might be asked to contribute towards like upkeep of roads or car parks. The industrial estate I used to be on had an annual maintenance charge & this covered the day to day estate maintenance but nothing else. Second year I was there a company came in and repaired all the damage to the estate roads & resurfaced the estate car park. Couple of weeks latter every business on the estate got a bill from the landlords for these repairs. The bills were based on the number of employees each business had working for them & the number of vehicles they had.

Oh one last point, what you going to do about your printer & all the print media?? These will need to go in the heated area & not out in the cold workshop so make sure there is enough room for them.

[David Hammond]

Cheers Kevin for the figures, I can chuck those into the mix.

Don’t want to over estimate so much it looks completely un viable, but don’t want to under estimate and not be able to pay.

Martin the service charge includes insurance, but I will check up on what exactly the service charge covers. Already had my insurance broker in to view the property to re-quote.

I need to put the roof back on the stud wall space that will be my work space, and figure out a cost effective way of heating that. I’m thinking calor gas heater. Just build the heat up in their quickly and the insulation keep it in?

[George Elsmore]

David you can crunch numbers until the cows come home what you have to do is have a positive outlook and go for it I had sore fingers with a calculator but in the end I moved to a unit there is no passing trade whatsoever but I have never looked back, to be honest a frontage on a high street was a pain in the ass as a lot of the enquiries coming in were to be frank tat! ….just my ten bobs worth 😀

[John Harding]

quote :

David you can crunch numbers until the cows come home what you have to do is have a positive outlook and go for it I had sore fingers with a calculator but in the end I moved to a unit there is no passing trade whatsoever but I have never looked back, to be honest a frontage on a high street was a pain in the ass as a lot of the enquiries coming in were to be frank tat! ….just my ten bobs worth

Thats sort of what I said in one of Davids other threads but george puts it so much more eloquently 👿

David I think george is right if you feel its do-able go for it

John

[David Hammond]

It’s do-able but going to eat up and profit I did make.

I’ve really pushed the printing side of the business, simply for eases sake. The margins aren’t as big as on signage and vehicles, but the nightmare I have with my work space it’s not worth the stress.

Moving to the unit, will mean doing a massive U-Turn, and targeting the signage and vehicle graphics hard, but make more profit on those jobs.

I will need to work out a pricing structure for the vans, as I will be in the unit, but the guys in the office above will occupy the shop and act as a satellite office for me, so need a simple your size van, this kind of design from £xxx amount.

I’m really eager to move, it feels like the right thing to do, but it’s a massive change.

Good news is there will be no change on my contents insurance! 😀

[George Elsmore]

David take this how you like but the longer you are in the game the better you will get, with pricing especially with vehicles I to be honest can go outside with a client and ask what do you want? look at the van and give a price their and then I know people on the boards will be drawing air through their teeth about this attitude but it works for me after looking at 1000’s of vehicles. The only time I get my pencil out is when I do fleets 😕 ….sorry rambling now 😀

[Harry Cleary]

quote George Elsmore:

David take this how you like but the longer you are in the game the better you will get, with pricing especially with vehicles I to be honest can go outside with a client and ask what do you want? look at the van and give a price their and then I know people on the boards will be drawing air through their teeth about this attitude but it works for me after looking at 1000’s of vehicles. The only time I get my pencil out is when I do fleets 😕 ….sorry rambling now 😀

+1 It’s part of the job as a sole trader. I simply don’t have time to do it any other way. I’ll only defer if I have to buy in print or there is an issue I am unsure of.

[David Hammond]

I wish I could it would be so much easier.

I need a ‘from’ price to start at.

Trouble is when the customer decides they want another colour or something completely different and expects the same price!

[Lorraine Clinch]

The ‘Price It’ guide? http://www.priceitsignguide.com

good for what it is, with adjustments for individual businesses

Lorraine

[David Hammond]

Yes I do have a copy of that, but sometimes find me to be well off the mark.

IE: do the signage prices include artwork, & fitting. I always add on for those.