Transition from residential to commercial electrical

[coffeejunkie]

Hi All, I'm tired of residential electrical work. I want to move into commercial electrical. How do I get into it? I've approached several hotels and businesses but they all are content with their existing electrical contractor. How did you make the switch? What incentives did you offer companies to use you instead of their current electrician? What industry should I focus on first? I'm located in Southern California.

:?

 

[brantmacga]

What's your motivation for trying to change focus?

 

[John120/240]

Do you have the resources/tools to do commercial work ? Threader, conduit benders, tuggers ? Are you experienced with 3 ph ? Experience bidding commercial work ? Start out small. Best of luck. Check out the thread on Flat Rate Pricing too.

 

[coffeejunkie]

These are reasons I no longer want to work for homeowners:

They want work done super cheap.
They want work done at odd hours including really early, really late, or on the weekends.
The jobs tend to be small and require lots of driving.
They want superb quality and cut throat prices.
They bitch and complain about petty things like my guys leaving a wire nut or some minute trash on the job site.
When I charge them a fixed fee for a service and my guys finish it quickly, they ask for a discount instead of saying "thanks for getting that done quickly".
I hate having to walk on egg shells when in expensive homes making sure we don't scratch, damage, or otherwise disturb their pristine residence.
They treat me like a second class citizen. They don't know my background (EE) and so think I'm just some day laborer (aka burger flipper).

Note: the above represents about 10% of my customers. The other 90% are great. I'm just tired of dealing with that 10%. And if that 10% is still going to exist in the commercial electrical world, well then I'm getting out of electrical contracting all together.

But if it doesn't, then I want commercial maintenance accounts (checking emergency lights, etc.). I also want commercial accounts for lighting and other general electrical upgrades (motors, panels, etc.). How do I get those accounts?

 

[coffeejunkie]

Do you have the resources/tools to do commercial work ? Threader, conduit benders, tuggers ? Are you experienced with 3 ph ? Experience bidding commercial work ? Start out small. Best of luck. Check out the thread on Flat Rate Pricing too.

Yes, I have the resources and tools to do commercial work. I also have guys that are experienced with 3 phase power. What I don't know is how to get the work. I've started doing small offices and bars but the work has dried up. I don't know how to get more work. What other commercial sectors do you think I could start out small in?

 

[LIM]

These are reasons I no longer want to work for homeowners:

They want work done super cheap.
They want work done at odd hours including really early, really late, or on the weekends.
The jobs tend to be small and require lots of driving.
They want superb quality and cut throat prices.
They bitch and complain about petty things like my guys leaving a wire nut or some minute trash on the job site.
When I charge them a fixed fee for a service and my guys finish it quickly, they ask for a discount instead of saying "thanks for getting that done quickly".
I hate having to walk on egg shells when in expensive homes making sure we don't scratch, damage, or otherwise disturb their pristine residence.
They treat me like a second class citizen. They don't know my background (EE) and so think I'm just some day laborer (aka burger flipper).

Note: the above represents about 10% of my customers. The other 90% are great. I'm just tired of dealing with that 10%. And if that 10% is still going to exist in the commercial electrical world, well then I'm getting out of electrical contracting all together.

But if it doesn't, then I want commercial maintenance accounts (checking emergency lights, etc.). I also want commercial accounts for lighting and other general electrical upgrades (motors, panels, etc.). How do I get those accounts?

90% of what you mentioned above will be on EVERY commercial job, especially the cost/payment. Also keep in mind that you may no be paid for 30-60 days on commercial jobs.

 

[John120/240]

Yes, I have the resources and tools to do commercial work. I also have guys that are experienced with 3 phase power. What I don't know is how to get the work. I've started doing small offices and bars but the work has dried up. I don't know how to get more work. What other commercial sectors do you think I could start out small in?

Tennant Finish jobs in strip malls. Contact commercial real estate and or building management company's. Convenience stores and burger joints typically have one contractor for a region that does all of their work. If you can get a foot in the door you are set. Repetition in doing the same Mc D's can gain you efficiency

 

[cdslotz]

You need to know how to estimate using labor units and consistent takeoff procedures. In other words, spend the money for a good program and take some training.
Commercial estimating is a pretty exact science. I've bid many jobs from $250K up to multi-million dollar jobs, and the top three bidders are withing a few hundred bucks of each other.
Smaller jobs won't be any different.
Commercial jobs last over many billing cycles...a small job might take three months...a large job can take years. Are you prepared to float labor and material dollars for 45 to 60 days?
You need to learn to take your estimate and break it down so that you can track costs over the billing cycles. You need to know if you have a problem BEFORE you have a problem. This could be anything
from finding a bust in the estimate, to realizing if another sub or the GC is impacting your cost.
If you're thinking of just doing commercial service, I'm not sure that would work as it does in resi. I can't think of any EC's in my area that don't do construction and a service department.
Try to find a GC that will let you estimate small finish-out jobs or retail jobs. Do those jobs with the best of your ability, track your cost, lick your wounds and move to the next one, one customer at a time.
Avoid bid services, you will only be giving your number to GC's that have no intention of using you....just your number.
In commercial....relationships are everything imo.

 

[coffeejunkie]

You need to know how to estimate using labor units and consistent takeoff procedures. In other words, spend the money for a good program and take some training.
Commercial estimating is a pretty exact science. I've bid many jobs from $250K up to multi-million dollar jobs, and the top three bidders are withing a few hundred bucks of each other.
Smaller jobs won't be any different.
Commercial jobs last over many billing cycles...a small job might take three months...a large job can take years. Are you prepared to float labor and material dollars for 45 to 60 days?
You need to learn to take your estimate and break it down so that you can track costs over the billing cycles. You need to know if you have a problem BEFORE you have a problem. This could be anything
from finding a bust in the estimate, to realizing if another sub or the GC is impacting your cost.
If you're thinking of just doing commercial service, I'm not sure that would work as it does in resi. I can't think of any EC's in my area that don't do construction and a service department.
Try to find a GC that will let you estimate small finish-out jobs or retail jobs. Do those jobs with the best of your ability, track your cost, lick your wounds and move to the next one, one customer at a time.
Avoid bid services, you will only be giving your number to GC's that have no intention of using you....just your number.
In commercial....relationships are everything imo.

Thanks for the advice, this will get me started.

 

[coffeejunkie]

Tennant Finish jobs in strip malls. Contact commercial real estate and or building management company's. Convenience stores and burger joints typically have one contractor for a region that does all of their work. If you can get a foot in the door you are set. Repetition in doing the same Mc D's can gain you efficiency

Thanks, good ideas. I will start looking for work in those areas. Thanks!

 

[coffeejunkie]

90% of what you mentioned above will be on EVERY commercial job, especially the cost/payment. Also keep in mind that you may no be paid for 30-60 days on commercial jobs.

I do not like the idea of having to float payroll for 30 to 60 days :[

 

[GoldDigger]

It does require sufficient capital (money in the bank) to make the transition.
Not much choice unless you are the only worker.

 

[cdslotz]

I do not like the idea of having to float payroll for 30 to 60 days :[

That's just the way it is. It's why once you become an elite EC (been is business for years, bonding capacity, reputation, etc), you get to bid jobs with little competition.
The first time I went into commercial contracting, I quickly realized I didn't know what I was doing. So I went to work for years with a large commercial EC for several years to learn to estimate, project manage, purchase, run service dept, every aspect of the business before I jumped in again.

 

[fmtjfw]

These are reasons I no longer want to work for homeowners:

They want work done super cheap.
They want work done at odd hours including really early, really late, or on the weekends.
The jobs tend to be small and require lots of driving.
They want superb quality and cut throat prices.
They bitch and complain about petty things like my guys leaving a wire nut or some minute trash on the job site.
When I charge them a fixed fee for a service and my guys finish it quickly, they ask for a discount instead of saying "thanks for getting that done quickly".
I hate having to walk on egg shells when in expensive homes making sure we don't scratch, damage, or otherwise disturb their pristine residence.
They treat me like a second class citizen. They don't know my background (EE) and so think I'm just some day laborer (aka burger flipper).

Note: the above represents about 10% of my customers. The other 90% are great. I'm just tired of dealing with that 10%. And if that 10% is still going to exist in the commercial electrical world, well then I'm getting out of electrical contracting all together.

But if it doesn't, then I want commercial maintenance accounts (checking emergency lights, etc.). I also want commercial accounts for lighting and other general electrical upgrades (motors, panels, etc.). How do I get those accounts?

Can you "fire" the tiresome 10%?

 

[coffeejunkie]

Can you "fire" the tiresome 10%?

I've been fine tuning my shitty customer radar but it still doesn't work 100%.

 

[iwire]

They want work done at odd hours including really early, really late, or on the weekends.

I have worked for commecial ECs for long time. Nights, weekends, snow storms, hoilday work have all been part of it.

I will be working about 9PM till 1AM tonight and tomorrow will be 2PM till about 3 or 4 AM.

 

[coffeejunkie]

I have worked for commecial ECs for long time. Nights, weekends, snow storms, hoilday work have all been part of it.

I will be working about 9PM till 1AM tonight and tomorrow will be 2PM till about 3 or 4 AM.

That kind of work doesn't interest me unless I'd be making a shit ton of money and could retire in 5 years.

 

[brantmacga]

I thought about this question for awhile at work today. I could write you a book, but i'm not going to do that.

First, let me just say, that all of those complaints you have about residential customers will be multiplied in commercial. We've all been there brother; I know from the outside looking in it seems like a cakewalk, but coming with that attitude will drown you. Your expectations will be rudely met with the reality that all work is hard.


Anyway, I'm going to leave you with this quote from Mike Rowe.

When it comes to earning a living and being a productive member of society ? I don?t think people should limit their options to those vocations they feel passionate towards. I met a lot of people on Dirty Jobs who really loved their work. But very few of them dreamed of having the career they ultimately chose. I remember a very successful septic tank cleaner who told me his secret of success. ?I looked around to see where everyone else was headed, and then I went the opposite way,? he said. ?Then I got good at my work. Then I found a way to love it. Then I got rich.?

Find your niche, and get damn good at it.

 

[GoldDigger]

There is a folk story (or parable) about a farmer working in his field near the road one day:
A man passing by asked what kind of people lived in the next town.
The farmer answered him by asking what kind of people lived in the town he came from.
The man replied that they were a selfish and ungrateful lot, surly and impolite, given to take offense at the pettiest of perceived slights.
The farmer said that he would find the people in the next town pretty much the same.

Later another man came by, bound in the same direction, and asked the same question.
The farmer replied with the same question of his own.
The traveler replied that the people where he came from were the salt of the earth, polite and generous, and always looking at the bright side of life.
The farmer said that he would find the people in the next town pretty much the same.

Both travelers found the farmer's prediction to be accurate.

 

[iwire]

That kind of work doesn't interest me unless I'd be making a shit ton of money and could retire in 5 years.

I would be willing to bet it really does not interest our PMs or the field guys either but being too selective is not always the best way to go.