Going to Waco this week end mr electric

[nafis]

I have been looking into Mr. electric lately. I am going to meet with the big boys at the head quarter this Saturday 12/6 however I am posting to see if you guys have advice for me on what to ask. I have quit few questions to ask them but I would like to hear your point of view on what to ask as well. For those who looked into the company or had experienced I greatly appreciated if you can PM me and tell me what is your opinions .


I really appreciate your help

[Greg Swartz]

I remember some threads about Mr Electric, and the other chain companies.

I imagine if you do a search, you could find them. There was a lot of information regarding them.

[Greg Swartz]

Here are a few links:

http://forums.mikeholt.com/showthread.php?t=102778&highlight=electric+franchise

http://forums.mikeholt.com/showthread.php?t=87699&highlight=electric+franchise

http://forums.mikeholt.com/showthread.php?t=88172&highlight=electric+franchise

http://forums.mikeholt.com/showthread.php?t=79677&highlight=electric+franchise

http://forums.mikeholt.com/showthread.php?t=55702&highlight=electric+franchise

Hope that helps.
Greg

[nafis]

i have those threads printed and i handed to 3 different people to evalute the business according to our responds . just to get diffrent point of veiw from different people

thanks

[masterinbama]

I love Mr. Electric. When I price a job,let's say a service change. If the customer thinks I am too high I hand them a Mr.Electric card and tell them to get another price. When you have to lay out more than $5000 just to wrap a van to their standards and that doesnt count the ladder racks and interior bins. Then turn around and hand them 6 to 10% of gross it is ridiculous to me. I would rather hand 10% to a good marketing rep who has no say in how I do business.

[bjp_ne_elec]

From what I've read, I'm with Masterinbama. The only thing you'll get from them for that 10% is some advertising (but I see these trucks around but actually thinking about it, haven't seen any advertising in papers, flyers, etc) - but knocking on doors and selling yourself is free - you just have to do it. I get the feeling guys go for these franchise deals when they're down in desperation - but I don't think it will help. It's not like a Subway franchise where is carries some weight - franchises like this are known by people - and when you go in a Subway you know you're going to get the same sandwich in CO as you do in MA. With an electrical franchise I feel the name doesn't carry that much weight - it's really the reputation that the owner earns and works hard for - along with his help. My opinion.

[electricmanscott]

Every once in a while I ask people if they have ever heard of Mr Electric. The answer is ALWAYS no. That's all I need to know about them.
Save your money, invest in yourself.

[guschash]

I wonder how many guys on this forum work for one of the chain companies. Some sound like they directly for the main company.

[ITO]

Why would you pay somebody to go to work for them?

[emahler]

especially when you can come here and ask the same questions, that they answer, for free?

check your PM nafis...

[bradleyelectric]

Does anyone know if they provide an organization chart? A procedures manual? Office software? Business and Marketing plan? Employee manual? I don't know the answers to these questions. If they provide these things that is what you are paying for the use of. You may be able to buy these things outright for less.

Does anyone here use these things?

[emahler]

Does anyone know if they provide an organization chart? A procedures manual? Office software? Business and Marketing plan? Employee manual? I don't know the answers to these questions. If they provide these things that is what you are paying for the use of. You may be able to buy these things outright for less.

Does anyone here use these things?

yes...to all

[aline]

but knocking on doors and selling yourself is free - you just have to do it.
Knocking on doors and selling yourself takes time.
Time that could be spent earning a paycheck.

I disagree that it's free.
Your time is the most valuable thing you own.
You only have so much of it and when it's gone you can't get it back.

I'm not saying don't go knock on doors and sell yourself.
I'm just saying I wouldn't consider it free.

Everything has its price. :)

[khixxx]

I went to Waco about 2-3 years ago. It was worth the trip but I was expecting more. It seems the model will work best for new companies or larger companies looking to branch out. After consulting with another much larger company in my area that was at the same meeting I opted out and so did he. The contract is very one sided IMO. I honestly was disappointed in the trip.

My conclusion was if I was going to continue working as a business I would drop $50k for a van supplies and a consultant such as Nextstar.

[macmikeman]

The Mr. Electric in my town has tv commercials shown throughout the day. I have not met the proprietors, but it appears to me that they have had astounding growth in the few short years they have operated in the area. I have come across flyers and newspaper ads they put out also. They are so slick in appearance that they are light years out in front of anybody else in that department also. They have impresssed me, and that is no small feat since I am the master of cynic. I've never been to Waco myself, but maybe the trip might just be a good thing for you.:wink:

[satcom]

The Mr. Electric in my town has tv commercials shown throughout the day. I have not met the proprietors, but it appears to me that they have had astounding growth in the few short years they have operated in the area. I have come across flyers and newspaper ads they put out also. They are so slick in appearance that they are light years out in front of anybody else in that department also. They have impresssed me, and that is no small feat since I am the master of cynic. I've never been to Waco myself, but maybe the trip might just be a good thing for you.:wink:

With the ad's and their up scale pricing, they end up eating all the small guys lunch, in my area alone the flat rate guys have not only got the lions share of work, they are still hiring and growing even in this recession period, we had about 14 to 17 small one man operations in and around town, now we are down to 3 or 4 small one or 2 man shops. It seems giving the customer up front pricing for everything, is the fastest way to grow the business, the T&M guys come and go, but these mass market guys just seem to do very well, the trip to waco may be worth the time to at least see what they have to offer.

[William1978]

Just my opinion STAY AWAY FROM MR. ELECTRIC AND MR. SPARKY.

[emahler]

Just my opinion STAY AWAY FROM MR. ELECTRIC AND MR. SPARKY.

i'll give you credit for at least stating it's your 'opinion'....what is it based on?

[djcrzysounds@yahoo.com]

You pay a lot of money in Franchising Fees, you have to meet a ton of requirements and they basically hand you your pricing, you add your 'profit' and material mark-ups and out prints a dandy binder.... Prices are outrageous then again it could've been the guy I was working for who owned it. Good luck, I don't recommend it but then again different strokes for different folks.

[emahler]

You pay a lot of money in Franchising Fees, you have to meet a ton of requirements and they basically hand you your pricing, you add your 'profit' and material mark-ups and out prints a dandy binder.... Prices are outrageous then again it could've been the guy I was working for who owned it. Good luck, I don't recommend it but then again different strokes for different folks.

define outrageous.....their pricing is based on true costs...

[aline]

define outrageous.....their pricing is based on true costs...
Basing your pricing on true costs is outrageous.

No one does that. You have to base your pricing on what others are charging. ;)

[emahler]

Basing your pricing on true costs is outrageous.

No one does that. You have to base your pricing on what others are charging. ;)

oops...back to the dungeon for me...so sorry

[aline]

oops...back to the dungeon for me...so sorry
Another thing. Don't buy nice trucks with nice graphics. Don't spend money on nice advertising & marketing. If you do, you'll have to overcharge your customers to pay for it.

You need to be driving around in beat up old rust buckets with magnetic signs stuck to the side. Limit your advertising to business cards you print yourself and the only marketing you need is word of mouth.

I don't buy anything I see advertised on TV. How do you think these companies pay for those expensive TV ads? They pay for them with their outrageous prices and by overcharging me.

[bradleyelectric]

define outrageous.....their pricing is based on true costs...


outrageous= true costs. That's what he meant.

Sorry I was so slow with that 1. I was a little boggled at what I charge.

[peter d]

Another thing. Don't buy nice trucks with nice graphics. Don't spend money on nice advertising & marketing. If you do, you'll have to overcharge your customers to pay for it.

You need to be driving around in beat up old rust buckets with magnetic signs stuck to the side. Limit your advertising to business cards you print yourself and the only marketing you need is word of mouth.

Are you doing any seminars? It sounds like you could sell that business plan for big bucks, just like Mr. Electric sells their franchises. ;)

[NolaTigaBait]

Another thing. Don't buy nice trucks with nice graphics. Don't spend money on nice advertising & marketing. If you do, you'll have to overcharge your customers to pay for it.

You need to be driving around in beat up old rust buckets with magnetic signs stuck to the side. Limit your advertising to business cards you print yourself and the only marketing you need is word of mouth.

I don't buy anything I see advertised on TV. How do you think these companies pay for those expensive TV ads? They pay for them with their outrageous prices and by overcharging me.

aline, you are right, the only advertising ive ever used is woed of mouth and business cards...these methods work great for me...but, every market is different

[bradleyelectric]

aline, you are right, the only advertising ive ever used is woed of mouth and business cards...these methods work great for me...but, every market is different

Do you strive to be the highest priced EC in the area or mid pack?

[emahler]

Do you strive to be the highest priced EC in the area or mid pack?

more importantly....how many employees do you have? how many do you want to have? what is your average job in man hours? 2? 20? 200? 2000?

these things all matter...

[nolabama]

never heard of mr electric

[NolaTigaBait]

Do you strive to be the highest priced EC in the area or mid pack?

what does this mean?

[NolaTigaBait]

Do you strive to be the highest priced EC in the area or mid pack?

i strive to make a profit...im a one man shop....i price my jobs on what I want to make...

[NolaTigaBait]

never heard of mr electric

nola, i think theres a "mr.sparky" here...

[bradleyelectric]

more importantly....how many employees do you have? how many do you want to have? what is your average job in man hours? 2? 20? 200? 2000?

these things all matter...


True. You need a totally different marketing approach to 2-20 hour jobs than 2000 hour jobs. The only thing similiar is you need a system to be efficient. The systems for these different markets are different though.

[emahler]

i strive to make a profit...im a one man shop....i price my jobs on what I want to make...

and that is why WOM works for you...more power...try running 10 trucks on WOM...not possible for resi service...new construction yes, service no....

[emahler]

True. You need a totally different marketing approach to 2-20 hour jobs than 2000 hour jobs. The only thing similiar is you need a system to be efficient. The systems for these different markets are different though.

exactly...but you are not running 10 trucks, with a 2 man hour avg job length, but word of mouth...

I can run 30 people without advertising, if I bid and win 5 jobs a year...but when I need 30 calls a day to keep 10 trucks working...Word of mouth won't cut it...

[NolaTigaBait]

and that is why WOM works for you...more power...try running 10 trucks on WOM...not possible for resi service...new construction yes, service no....

ok, and?????...i was just saying that it works for me...did i offend someone?

[bradleyelectric]

what does this mean?

There are different marketing technics to being a mid pack priced EC than a high priced EC.

[NolaTigaBait]

There are different marketing technics to being a mid pack priced EC than a high priced EC.

genius, i know that there are a million differnet ways to run a business..a guy made a comment, and i said that he was right- based on my experience

[nolabama]

if there is a mr sparky here i have never heard of them - i have never seen a commercial, print ad , or radio ad - and i pay attention to that sort of thing - if one was joining a franchise i would think that advertising should be part of it - note: a quick fone book check shows no mr sparky or mr electric

[NolaTigaBait]

if there is a mr sparky here i have never heard of them - i have never seen a commercial, print ad , or radio ad - and i pay attention to that sort of thing - if one was joining a franchise i would think that advertising should be part of it - note: a quick fone book check shows no mr sparky or mr electric

i saw a van somewhere off of metairie rd. and i sae an advertisement at papworth and vets

[bradleyelectric]

genius, i know that there are a million differnet ways to run a business..a guy made a comment, and i said that he was right- based on my experience

no problem. I'm not offended. Maybe I'm offensive. I'm just commenting in the discussion also.

I originally entered this discussion when someone asked about a fanchise and some people commented that they provide some advertising at a steep fee. Based on my knowledge of current trends in franchises and experiences with what some offer I commented that they may offer a great deal more than that. Also that there were other ways to gain what they offer.

[NolaTigaBait]

[QUOTE=bradleyelectric;961667]no problem. I'm not offended. Maybe I'm offensive. I'm just commenting in the discussion also.

I originally entered this discussion when someone asked about a fanchise and some people commented that they provide some advertising at a steep fee. Based on my knowledge of current trends in franchises and experiences with what some offer I commented that they may offer a great deal more than that. Also that there were other ways to gain what they offer.[/QUOTE

full respeck

[bradleyelectric]

genius, i know that there are a million differnet ways to run a business..a guy made a comment, and i said that he was right- based on my experience


delete.........

[NolaTigaBait]

delete.........

delete.....

[emahler]

genius, i know that there are a million differnet ways to run a business..a guy made a comment, and i said that he was right- based on my experience

you just missed all the sarcasm in that guys post...;)

[NolaTigaBait]

you just missed all the sarcasm in that guys post...;)

no, i dont think i did...but thanks for playing

[cadpoint]

Right on the the US Dollor Bill it states ... "for debts, both public and private", my point being,
you'll have the right (by paying) to be in the public eye!

[emahler]

no, i dont think i did...but thanks for playing

do i get a fantastic parting gift?

Right on the the US Dollor Bill it states ... "for debts, both public and private", my point being,
you'll have the right (by paying) to be in the public eye!

what?

[bradleyelectric]

what?

he was making a point. What? I don't know. He does though.

[jaylectricity]

he was making a point. What? I don't know. He does though.

I suspect a cad point.

[Greg Swartz]

I happened to get my hands on a price sheet from Wirenut.

2007 price for a 200A panel upgrade is $2196...
I charge around $1300 for the same thing.

Most companies around town are charging $1300 - $1500...

I can make a decent profit on $1300... but, If I can start charging more, I want to know how...

Look, I think $2100 is too much to charge, but Wirenut has a high overhead... I don't have such a big overhead. If I can charge $1500-$1700, I would be very happy... I just want to know how they can do these changes every day for such a high rate... and keep getting customers.

[bradleyelectric]

Look, I think $2100 is too much to charge, but Wirenut has a high overhead... I don't have such a big overhead. If I can charge $1500-$1700, I would be very happy... I just want to know how they can do these changes every day for such a high rate... and keep getting customers.

Be very personable. From the time the person contacts you they are your customer. They are also your friend. You know it and believe it and treat them as that. When you go and see the job you tell them how much it costs. It costs $2250. It is not to much to charge.

It's not like you are going to be able to move into the biggest house in town because this customer is going to pay you $2250 for this service. It is just what you need to do this job and work towards your goals. Treat the job as it is a $2250. job, and treat the person as if they are important. Have confidence in both.

Now how can I get a copy of that price sheet?

[jrannis]

Another thing. Don't buy nice trucks with nice graphics. Don't spend money on nice advertising & marketing. If you do, you'll have to overcharge your customers to pay for it.

You need to be driving around in beat up old rust buckets with magnetic signs stuck to the side. Limit your advertising to business cards you print yourself and the only marketing you need is word of mouth.

I don't buy anything I see advertised on TV. How do you think these companies pay for those expensive TV ads? They pay for them with their outrageous prices and by overcharging me.

I really dont know how to take this one.
Are you giving advice on how to succeed or how to fail?

[cadpoint]

"you'll have the right (by paying) to be in the public eye!"

You'll have the right to Franchise for them in public(by paying them in private with Dollor Bills)
((you form an agreement in Private that you will pay for in Private that will be payed in dollor bills))

Is that Clear enough ?

They tell you how you should be running your business(from their prospective).
They will teach or supply all the information that you might or might not be lacking as an E.C.

The price is usually around tha salary of a P.T. employee per year, based on what I've heard on the street...
Thats just the Price to franchise, that doesn't include and Bells or whisltes!


Painted trucks, shirt with Logo's, are all payed for by you - By your private debit

[jrannis]

I happened to get my hands on a price sheet from Wirenut.

2007 price for a 200A panel upgrade is $2196...
I charge around $1300 for the same thing.

Most companies around town are charging $1300 - $1500...

I can make a decent profit on $1300... but, If I can start charging more, I want to know how...

Look, I think $2100 is too much to charge, but Wirenut has a high overhead... I don't have such a big overhead. If I can charge $1500-$1700, I would be very happy... I just want to know how they can do these changes every day for such a high rate... and keep getting customers.


Greg,
You might need to decide what kind of margin you need to stay in business.
You may be only making enough to get by with pricing like that.
If your supplies are $600 for that job and you do all the work yourself, and you like to be paid $25 per hour with your burden is going to be something like $35 per hour. Truck $8 per hour.
What do you need to survive? 40% ? (It isnt less than that, believe me)

600 Material
280 Labor 8 hours at $25 plus $10 Burden
64 Truck
944 Total

$1,573.00 selling price @ 40%

You are basiclly in business for yourself working for $25 per hour. If you can get 40 hours a week. You are doing like 50k a year. Nice hobby!

Should you be making 100k a year?
Do the math at $50 per hour.

600 Material
520 Labor 8 hours at $50 plus $10 burden
64 Truck
1184 Total

$1,973.00 selling price @ 40%

IMHO, If you can get by on $50k a year, you are doing just fine

[JohnME]

As someone who wants to begin their own business, I wonder if this is the way to go? It is all about marketing yourself of course, but I wonder if its worth it to join with these guys.

I suppose it all depends on the percentage of the business I would be able to take home.

[electricmanscott]

IMHO, If you can get by on $50k a year, you are doing just fine

Might as well got a job at Home Depot. May not be 50k but the headaches are far less and the bennies are way better.

[ctmike]

Might as well got a job at Home Depot. May not be 50k but the headaches are far less and the bennies are way better.

that maybe true but if I want a day off to play golf or go to the ball game I dont have to ask anyone

[peter d]

that maybe true but if I want a day off to play golf or go to the ball game I dont have to ask anyone

I understand that some people enjoy being their own boss and there is nothing wrong with that. :)

But I cannot understand why someone would take on all the risk, liability, headaches and paperwork that come with electrical contracting only to make $50K a year. :confused: It does not seem worth it to me. You can easily make that or much more working for someone else and not have to deal with the aforementioned issues.

[ctmike]

Ive thought about working for some else and have had some good offers.but as i contractor friend of mine pointed out im not house broken anymore. for me fredom is worth a lot

[emahler]

most small contractors, unfortunately, spend way more days working when they planned on being off than you can imagine...

[peter d]

A self employed EC should be paying himself a minimum of 100K a year...absolute minimum, and go up from there.

IMO of course. :)

[emahler]

A self employed EC should be paying himself a minimum of 100K a year...absolute minimum, and go up from there.

here in NJ, very few sole proprietor EC's gross much more than that, let alone NET...

[peter d]

here in NJ, very few sole proprietor EC's gross much more than that, let alone NET...


So they are just making a paycheck wage then?

[JohnME]

Gross 100K a year? You must have a heck of a profit margin to be able to feed yourself.

[emahler]

So they are just making a paycheck wage then?

take away anything the company may pay for (fuel, meals, work on the house) I know guys who have made less than apprentices after all was said and done...

[peter d]

take away anything the company may pay for (fuel, meals, work on the house) I know guys who have made less than apprentices after all was said and done...

Why even bother? :confused:

[roy g]

i looked into Mr Electric franchise a few years ago. at that time you purchased a franchise for countys or citys. The franchise fee was based on the population of the city or countys you were authorized to operate in. The particular county my shop was in has a population of 70k and is essentially a bedroom community for the larger metro area which was owned by another franchise. for the 18000 dollar fee + 8% of gross sales and to be shut out of the larger market, it wasn't a deal for me.

[JohnME]

8% of gross sales seems a bit high to me, what do you guys average for a profit on your gross? I have heard from my boss we aim for 7-10%.

[emahler]

Gross 100K a year? You must have a heck of a profit margin to be able to feed yourself.

that's what the working wives are for...average 1 man shop around the country is lucky to gross $150k....very few over $200k...way more under $150k....

2000 x $65 = $130k...how many bill out 2000 hours?

[emahler]

8% of gross sales seems a bit high to me, what do you guys average for a profit on your gross? I have heard from my boss we aim for 7-10%.

it's overhead...it's a line item for your pricing...no different than a van payment...

[MJW]

My business partner and I went to Waco 4 or 5 years ago and decided not to join up. It was all hugs and kisses while we were there and we were about to pull the trigger. After they thought they had us locked in and we got back home everything seemed to change. We couldn't get our calls returned and they couldn't seem to get our reimbursement check for our flights to us. Kind of got the feeling we were not going to get the best customer service after the deal was done. It might have just been the sales rep we had, but my internal radar started going off and we backed away.

[G & G Electric]

Coming to Waco to talk to Mr. Electric? If I'm not entirely mistaken, he has only one service van here in town (yes, Waco). I know he hires people out of a local temp agency, Journeyman electricians for $15/hr. What a joke. Going rate around here is $19 to $23/hr, and upwards of $30/hr on up if you want to drive to Ft. Hood. I don't believe in franchises. You end up paying the guy who came up with the idea of "Mr. Electric" the money you should be paying yourself.

[jrannis]

I don't know how hard they lock you in but, can you work it for a couple of years and see if you like it. If not just dont renew. Worst thing I guess is that you might learn some good business practices.

[bjp_ne_elec]

My business partner and I went to Waco 4 or 5 years ago and decided not to join up. It was all hugs and kisses while we were there and we were about to pull the trigger. After they thought they had us locked in and we got back home everything seemed to change. We couldn't get our calls returned and they couldn't seem to get our reimbursement check for our flights to us. Kind of got the feeling we were not going to get the best customer service after the deal was done. It might have just been the sales rep we had, but my internal radar started going off and we backed away.

Did you ever get reimbursed for the travel?

[emahler]

Coming to Waco to talk to Mr. Electric? If I'm not entirely mistaken, he has only one service van here in town (yes, Waco). I know he hires people out of a local temp agency, Journeyman electricians for $15/hr. What a joke. Going rate around here is $19 to $23/hr, and upwards of $30/hr on up if you want to drive to Ft. Hood. I don't believe in franchises. You end up paying the guy who came up with the idea of "Mr. Electric" the money you should be paying yourself.

last I heard, he was running 4-5 trucks under Mr. Electric and a few under his other company. All this in Hewitt TX, not exactly a thriving metropolis.

one thing to keep in mind is that you pay for everything...you are either going to pay cash for the ideas, principals, and education....or you are going to pay with time and trial and error....typically the latter costs way more than the former...

but, it's easier to drag people down, than pull them up...a little misinformation here, some useless information there....pretty soon you are the new Minister of Information for Iraq...nice 1st post by the way...

[Brady Electric]

Every once in a while I ask people if they have ever heard of Mr Electric. The answer is ALWAYS no. That's all I need to know about them.
Save your money, invest in yourself.

I agree, (INVEST IN YOURSELF)
Semper Fi Buddy

[nakulak]

at one time I worked for the 2nd oldest construction firm in DC. A real family outfit, and old school company. I notice that a lot of the upstart/yuppie/wannabee bigshot companies of the "new age" treat their employees more like office chairs than people, and it makes me sad to see. (Its not what makes a good company) Anyhow, this is a great clip about the right stuff - I applaud these folks, they have their heads in the right place.

http://www.comcast.net/data/fan/html/popup.html?v=952567986&pl=952449357.xml&plc=952449357&launchpoint=Cover&cid=fancover&attr=default_headline&config=/config/common/fan/default.xml

[emahler]

I agree, (INVEST IN YOURSELF)
Semper Fi Buddy

that's just it...not saying Mr. E is the right choice for everyone...but for a good percentage of people, buying into Mr. Electric, Mr. Sparky, ESI, Nexstar, etc is the best investment in themselves that they could ever make.

they are investing in education to let them build a better company for them, their family, their employees, employees families...etc

for many EC, it's throwing money down the drain...but that's because of the EC's not the systems...if you don't have the answers, investing in yourself (as implicated by many) is a bad investment...

the myopic view of electrical contractors is frightening...we are trapped in 4x4 junction boxes and can't see beyond the walls...

there is an outfit in our area that is a member of Nexstar...5 yrs or so ago when they joined, they were running less than 10 trucks between plumbing, electric, and HVAC...today they have over 50...if joining Nexstar wasn't an investment in themselves, what was it?

good luck.

[MJW]

Did you ever get reimbursed for the travel?

Yes we did but I felt it took a lot more work on our end than it should have.

[khixxx]

I had no problem with my reimbursement. I think the guy that helped me get out there was Marlin, I don't think he is still with the company. Nice guy, took me to lunch and even told me to take my name tag off before we went in to the steakhouse.

Food for thought. If you invested $50k that made you an extra $5k a year is that good? Well it's not great but that's a 10% ROI. The biggest invention in history is compound interest.

[mdshunk]

I have found simply buying a "system" outright from ESI or Nexstar to be more valuable than paying franchise fees on a regular basis to companies like Mr. E or Mr. S. I have developed the opinion that the franchises are best suited for guys who operate in more densely populated areas, and "systems" will work for pretty much everyone. Tuition is expensive. If it costs you 50K to learn a few lessons, so be it. Education never killed anyone.

[peter d]

for many EC, it's throwing money down the drain...

the myopic view of electrical contractors is frightening...we are trapped in 4x4 junction boxes and can't see beyond the walls...


Those EC's just fill the revolving door of EC's that come and go. Those that don't fold up just stay as one man operations working for a paycheck.

Those that make the investment in a system or marketing philosophy thrive from what I've observed.

[mdshunk]

Those that make the investment in a system or marketing philosophy thrive from what I've observed.
I'm glad you said "marketing philosophy" as well, since a successful system may also be none of the systems we've talked about so far. Any system, be it one of your own design, perhaps coupled with the ideas of others, or even a store-bought system can be successful. Give the customer what they want, and make a profit doing it. By whatever means you make those two things happen, you're a success.

[peter d]

I'm glad you said "marketing philosophy" as well, since a successful system may also be none of the systems we've talked about so far. Any system, be it one of your own design, perhaps coupled with the ideas of others, or even a store-bought system can be successful. Give the customer what they want, and make a profit doing it. By whatever means you make those two things happen, you're a success.

Yes, you don't have to buy one from ESI by any means. If you think long enough and get just a tad bit creative you can easily come up with a way to market yourself.


For instance, what are people so crazy about these days? Being green and energy efficiency. Think a little bit and you should be able to come up with at least five different services you can offer for energy efficiency upgrades.

[mdshunk]

For instance, what are people so crazy about these days? Being green and energy efficiency. Think a little bit and you should be able to come up with at least five different services you can offer for energy efficiency upgrades.
Yes, but you need to go beyond that. Much of the "system" you get from these guys is the administrative how-to's . All of us can do work. Some of us can get work. Fewer can administrate all that in a seamless and painless way, a way that follows an assembly-line like "system". Until a business is "systematized", you're not operating at peak efficiency. A comprehensive procedures manual, if you will.

[peter d]

Yes, but you need to go beyond that. Much of the "system" you get from these guys is the administrative how-to's . All of us can do work. Some of us can get work. Fewer can administrate all that in a seamless and painless way, a way that follows an assembly-line like "system". Until a business is "systematized", you're not operating at peak efficiency. A comprehensive procedures manual, if you will.

Well yes, I was just throwing marketing ideas out there. You're now talking about the whole model that a company like ESI or Nexstar offers, right?

[Pierre C Belarge]

Yes, but you need to go beyond that. Much of the "system" you get from these guys is the administrative how-to's . All of us can do work. Some of us can get work. Fewer can administrate all that in a seamless and painless way, a way that follows an assembly-line like "system". Until a business is "systematized", you're not operating at peak efficiency. A comprehensive procedures manual, if you will.


The above statement is probably the most important reason so many small ECs fail in my area. They were electricians working for someone else, and had little if any business education/skills.

[satcom]

The above statement is probably the most important reason so many small ECs fail in my area. They were electricians working for someone else, and had little if any business education/skills.

And most tend to let emotions guide the pricing, something a system will not allow you to do, just think how many guys spend their lifetime working at what they think is a business, only to descover at the end, they have no assets, no retirement, and most likely no medical either. A well run business, should provide the operator with an above avarage salary, and benifits, and a study asset build, so in the end they have something with value. Only a small number of EC's can say they have anything of value in their business when they are ready to sell or retire, but many other trades seem to excell when it comes to the business end, might it be we need to learn the business practices to success?

[emahler]

Yes, but you need to go beyond that. Much of the "system" you get from these guys is the administrative how-to's . All of us can do work. Some of us can get work. Fewer can administrate all that in a seamless and painless way, a way that follows an assembly-line like "system". Until a business is "systematized", you're not operating at peak efficiency. A comprehensive procedures manual, if you will.

exactly...and there are 2 main ways to get this education....pay someone to teach you or learn by the school of hard knocks...l'll let you guess which one costs more in the long run

[bradleyelectric]

might it be we need to learn the business practices to success?


Let's not go there. It only stirs up bad emotion and makes people tell you there is more than 1 way to run a business.

[mdshunk]

Let's not go there. It only stirs up bad emotion and makes people tell you there is more than 1 way to run a business.
Actually, there is more than one way. Some people are happy and content with just paying the bills and having a little bit left over. Farbeit for me to say that's wrong. Doesn't really suit me, but it may well suit others.

[aline]

Let's not go there. It only stirs up bad emotion and makes people tell you there is more than 1 way to run a business.
There are many ways to run a business.

If I live in California and want to visit Florida there are many ways for me to get there as well.

I can fly.
I can drive a car.
I can ride a bike.
I can walk.

All methods will get you there.
Which one is best?
That depends on your personal goals.
How fast do you want to get there?
Would you prefer to go slow and take in the scenery?
Which one is the most economical?
What kind of condition are you in?
Will you even live long enough to reach your destination?

If your not in good condition and don't have long to live walking might not be your best option. :) You also may be too tired to enjoy yourself once you get there.

[satcom]

There are ,many ways to run a business, but only a few that will result in growing assets and better earnings.

The beauty of this great land is, you can pick your path, and do it your way! I really don't care if someone chooses to live in a box, under a freeway, or in a mansion, but I do believe they should all have the free choice to choose.

[bradleyelectric]

look, don't go messing with me, just do it my way.

[emahler]

Let's not go there. It only stirs up bad emotion and makes people tell you there is more than 1 way to run a business.

not quite...but there are way more ways to do it wrong...

[emahler]

Actually, there is more than one way. Some people are happy and content with just paying the bills and having a little bit left over. Farbeit for me to say that's wrong. Doesn't really suit me, but it may well suit others.

these people are only happy because they don't know any better...if they could have the same financial situation with only working 3 days a week instead of 5 or 6, who would say 'no, i want to work more for less'?

[bradleyelectric]

these people are only happy because they don't know any better...if they could have the same financial situation with only working 3 days a week instead of 5 or 6, who would say 'no, i want to work more for less'?

People have written here that is dishonest, hiding something and ripping people off.

[emahler]

People have written here that is dishonest, hiding something and ripping people off.

what is? not living at near poverty levels?

[satcom]

what is? not living at near poverty levels?

Please boss! don't give a raise, give me more overtime, so I don't have to spend so much time with the family.

[bradleyelectric]

what is? not living at near poverty levels?

I think either that, the fact that they are retired with benefits from previous employers, have spouses that work outside the business to pay bills and provide benefits, work for paycheck wages and figure they don't have to answer to anyone, or feel they aren't worth any more.

I've heard some ask for advice as to what they should be charging to turn right around and say they had a retirement coming in and was just trying to show a son in law how to run a business not rip people off.

[emahler]

Please boss! don't give a raise, give me more overtime, so I don't have to spend so much time with the family.

i see you have met my ex....

[emahler]

I think either that, the fact that they are retired with benefits from previous employers, have spouses that work outside the business to pay bills and provide benefits, work for paycheck wages and figure they don't have to answer to anyone, or feel they aren't worth any more.

I've heard some ask for advice as to what they should be charging to turn right around and say they had a retirement coming in and was just trying to show a son in law how to run a business not rip people off.

if guys know the facts, and choose to live that way...fine...but when that's all they think they can do, and argue that case, then there is a problem...

i guess being educated and ignorant is better than just being ignorant...

[scta]

I can answer any questions you may have. I am a former franchisee.

[MJW]

I can answer any questions you may have. I am a former franchisee.

Just a couple of questions
1) What was your overall experience?
2) Why are you a former franchisee?
3) How difficult was it to get out of the franchise?

[Matt Hermanson]

I'm sorry that I am only now seeing this thread. But I hope you at least went to Waco and checked them out for yourself. If you didn't at least check them out, you might kick yourself later. Please note that I didn't say you should join. I just said you should check them out.

As for the idea that Mr. Electric operators are way over-priced, I would take those comments with a grain of salt. There are way too many "slugs" in the industry and on these boards. They have no clue how to run a business and think they are really cleaning up when they aren't. If you do only service work and you have employees doing that service work; you'll eventually find out just how expensive it is to offer service work to your customers. The alternative to to pay your guys crap and for them to do crap work, which is way too common.

As for the Mr. Electric system, it has some good points and some bad points. Do I think you get enough good points to offset the fees, no. There are much better options than giving all of your money to the big boys in Waco. I think they learned too much from Ms. Reno when she visited that fine city some time back.

After trying to "make money" providing service work on our own, we joined a group called the Nexstar Network in 2006. Their coaches really helped to wake us up to the true cost of providing quality service work to customers.

Also note that if you aren't willing to cut corners, you'll cost more than others period.

I did a few estimates behind Mr. Electric before he had to close down. No, I wasn't cheaper. In fact I was triple on one. But then again I was running five new circuits to the basement for all of the stuff he said he wanted to run rather than just hook up to the two existing circuits that were there. But I digress.

I do think you need to take a long and hard look at joining a best practices group. Before you make any decision, call Nexstar at 888-609-5490 and ask to speak to Lisa McNeil or Rich Piepenburg. You may use my name (Matt Hermanson) when you call them and you may ask them for my phone number as well. I'll tell you what I like and what I don't like.

The cracks about paying $5,000 for a van wrap job are yet another example of folks that don't really have a clue. We have not taken the truck wrap plunge yet. You'll pay less than $5K if you're having several trucks done. Most of the Nexstar members that have done the wraps can track way more business to having the wraps than the wraps cost. That is counting profit, not gross billings. And they know because they ask how/why the customer got their phone numbers, etc. And then they track all of that so they can tell you how much business is coming from where. The wraps are coming for us, we just want to use our budget for some other things first. Nexstar really preaches tracking things. If you can't track it, you can't manage it.

Do I think Nexstar is the end all. NO.

But give them a serious look. Yes, you'll write a BIG check to join, but that's life. You can also go to their web site www.nexstarnetwork.com and look for members in your area. Call them up and ask them what they like and what they don't like about Nexstar.

If you don't like my tone, take a number. There are plenty of members in Nexstar that don't like my tone either. Oh well, get a life.

But even if you were to join Nexstar or something like them, don't stop there. We also try to learn from many others. Go to Hudson Ink, Contractor Selling, Ellen Rohr and many others.

Be a student, not a slug.

Belated wishes for a Merry Christmas and Happy New Year to everyone.

Matthew Hermanson

[peter d]

You can also go to their web site www.nexstarnetwork.com and look for members in your area. Call them up and ask them what they like and what they don't like about Nexstar.

I did just that, and I noticed that all of the Nexstar contractors in my area are plumbing and mechanical contractors. That tells me a lot. It doesn't tell me anything new - it just confirms what I already know to be true about the way many EC's think. It also tells me there is a big untapped market for EC's to join a "best practices" group in my area.

[khixxx]

I did just that, and I noticed that all of the Nexstar contractors in my area are plumbing and mechanical contractors. That tells me a lot. It doesn't tell me anything new - it just confirms what I already know to be true about the way many EC's think. It also tells me there is a big untapped market for EC's to join a "best practices" group in my area.

It could be. If I remember right they only will allow so many companies in an area. say 2 guys for every 150k population. You can get voted in. This means if an HVAC and a Plumber are in your area then you can't use them for EC unless they vote you in or the population is a certain amount. This is just something to ask when or if someone talks to reps. It's been years sense I talked to them so my memory could be off.