[jstanovic]

I don’t cover the shortfall, I allow for all the unbillable hours. My time spent quoting, invoicing, picking up materials etc is part of the job so I want to get paid for it. If a job takes 8 hrs and I did an extra 2hrs quoting, picking up materials, invoicing, who is going to pay for my 2hrs? The client does as it’s part of the work. I don’t charge them $100/hr for those 2hrs, I allow for it in my 8hrs of labour. That’s just basic business.

If a job gets cancelled or I’m sick that’s my bad luck and I’m out of pocket.

If you get home from your 8hrs wage paid work day, then the boss rings and says can you just do a couple hours on the computer for me, would you do it for free? What if he then said you need to do it at least 3times a week and I’m not paying you? What if he then said the client isn’t happy with the job so hes not paying me so you’re not getting paid? The list goes on, that’s the risk of being self employed.

If you’re on wages, do you think the boss charges you out at cost price?
Whatever your hourly rate it, double it and that is the cost price to have an employee when you factor in super, sick pay, annual leave, vehicle, fuel, phone, workers comp etc etc. So if you are getting paid on wages $35/hr, it costs the boss $60-70/hr to have you as an employee. Then add on top admin costs and a bit of profit (the reason you’re in business) then $90-100/hr is easily justified. Add workshop machinery/rent blah blah blah, all adds up.

If you’re charging $50/hr as a self employed person, and you’re paying for vehicle, accountant etc etc you will not make a decent wage, especially considering all the risk is on your shoulders.

Sure, if you work out of the car boot, have guaranteed 40hrs a week work, bugger all overheads, don’t have income protection etc etc you may make a good living off $50/hr.

Don’t take my word for it, plenty of info online showing business costs. I’m not telling anyone how to suck eggs, just might go a little way to showing my experience of being self employed. It’s definitely not for everyone!