Charge out rate.

[jbower]

My brother and I have part-time electrical business doing small jobs, services and some new construction we pay taxes, pull permits and have liability insurance. We have less than three employees (we have two part-time employees) so we are not required to have workers comp. The business is a LLC, we are a class C contractor. My question is what is a fair charge out rate per/man or per/hr? and is it best to charge by the square ft. for new homes?

[bphgravity]

No one here can give you a simple number answer. We don't know enough information, like how much overhead you have, how much you pay your employees, how much your competition charges, how much profit you want, ect... The list is nearly endless depending on YOUR business plan.

I suggest you run a search for this topic on this Forum to get ideas from other contractors whom have answered this type of question before. Perhaps you will find some tips for establishing your finances.

[jbower]

No one here can give you a simple number answer. We don't know enough information, like how much overhead you have, how much you pay your employees, how much your competition charges, how much profit you want, ect... The list is nearly endless depending on YOUR business plan.

I suggest you run a search for this topic on this Forum to get ideas from other contractors whom have answered this type of question before. Perhaps you will find some tips for establishing your finances.

Thanks for your suggestion, I'll do that.

[pgordon]

sq. feet are for GC's, you should be estimating each and every job.find your cost. add you profit.