Most Valuable lessons

[jmsbrush]

For EC's, as a business owner, there have been many defining moments or all of a sudden brief moments of an enlightening event that took place that made me think differently or make me want to change something in my business right then and there.
Could have been one sentence in a book, one customer, one conversation with a complete stranger. Doesn't matter what it is.

What are some important things that you have remembered in the past? That you will never forget and that you could share with others???

Here's one that happen to me the other day, it may seem insignificant but I'll share anyways.

The other day I went to get my oil changed in the company van. The cost was $41.00. He said for $49 he would put new wipers and a fuel additive. I said okay.
They come back and told me that I needed an air filter. The price started off at $24 but he brought it down to $15.
So with tax, I payed $75.00. I did not have a problem with this.
I was in and out less than 10 minutes.
I drove home and was thinking," I took myself to someones business and paid them $75.00 and I go to customers houses all the time and they want to complain about a $75.00 service fee. I'm bringing my $50,000 truck with all its parts and all my knowledge to there home".
Sometimes I loose confidence in myself with the dispatch fee when all the other contractors are coming out for free.
This event that took place was a reminder that were professionals and we deserve a fair wage.
I hope one day that as a whole, Electrical contractors will charge what they deserve so we can better ourselves our family our employees and our community.
What say you?

 

[mcclary's electrical]

For EC's, as a business owner, there have been many defining moments or all of a sudden brief moments of an enlightening event that took place that made me think differently or make me want to change something in my business right then and there.
Could have been one sentence in a book, one customer, one conversation with a complete stranger. Doesn't matter what it is.

What are some important things that you have remembered in the past? That you will never forget and that you could share with others???

Here's one that happen to me the other day, it may seem insignificant but I'll share anyways.

The other day I went to get my oil changed in the company van. The cost was $41.00. He said for $49 he would put new wipers and a fuel additive. I said okay.
They come back and told me that I needed an air filter. The price started off at $24 but he brought it down to $15.
So with tax, I payed $75.00. I did not have a problem with this.
I was in and out less than 10 minutes.
I drove home and was thinking," I took myself to someones business and paid them $75.00 and I go to customers houses all the time and they want to complain about a $75.00 service fee. I'm bringing my $50,000 truck with all its parts and all my knowledge to there home".
Sometimes I loose confidence in myself with the dispatch fee when all the other contractors are coming out for free.
This event that took place was a reminder that were professionals and we deserve a fair wage.
I hope one day that as a whole, Electrical contractors will charge what they deserve so we can better ourselves our family our employees and our community.
What say you?

Well said, you make me want to never back off my service charge again! But actually I do the same thing. I feel bad for charging someone $75.00 to walk in reset a GFI. But if you get down to it, we deserve it. Taxes, insurance, licensing ,continuing education, wear&tear, fuel, maintenance, the list is endless. But If I "feel" bad in a situation, I usually go with my gut feeling and just charge them what it ACTUALL cost me. Meaning if I was already in th area and drop by a customers house, I could spare the service call, and only charge t&m. or if two customers in the same area, schedule them the same day, and spare your favorite one the service charge.

 

[bradleyelectric]

Well said, you make me want to never back off my service charge again! But actually I do the same thing. I feel bad for charging someone $75.00 to walk in reset a GFI. But if you get down to it, we deserve it. Taxes, insurance, licensing ,continuing education, wear&tear, fuel, maintenance, the list is endless. But If I "feel" bad in a situation, I usually go with my gut feeling and just charge them what it ACTUALL cost me. Meaning if I was already in th area and drop by a customers house, I could spare the service call, and only charge t&m. or if two customers in the same area, schedule them the same day, and spare your favorite one the service charge.

Just remember, when you let someone keep $75 you'd normally charge them that is $75 that your wife or son will never benefit from. Does that customer deserve that $75 more than your family?

 

[powerslave]

Just remember, when you let someone keep $75 you'd normally charge them that is $75 that your wife or son will never benefit from. Does that customer deserve that $75 more than your family?

Very well put. I couldn't agree more.

 

[ceb58]

One of the problems I think people have is this. Jim TOOK the van to a business. When people go to a business they SEE the building, they SEE the equipment it takes to operate that business. When the EC pulls up to their home they dont SEE what it took just for you to get there. We know what it takes, gas,ins. wear and tear, time keeping the van or truck stocked and every thing else just to pull up. But in their mind its a guy just pulling up in a van how much should that cost? They SEE ( I will use the oil change place) guys running around working on the cars, They THINK that they all must be trained and ASC certified to work on the cars. NOT. There may be one trained mechanic in the shop but not all of them. Doing oil changes is not complex as rebuilding an engine or transmission but they THINK they are doing something special to change the oil. When the EC comes to change that melted receptacle they THINK it's no big deal. They have no idea that a professional will want to know why the receptacle melted, why the breaker didn't trip. What is going on and how to find the real problem to protect the customers life and property. They do not realise the training and trade experience it takes to preform the job.
But as long as there are people going around unlicensed, uninsured and clueless under cutting the ligament contractors this debate will still be going on after we are all gone and those after us will still be fighting to make a decent living.

 

[LarryFine]

Hear! Hear!

Hear! Hear!

Absolutely! My most recent revelation came when you guys started talking about raising pricing when calls and work slow down, rather than lowering them.

When I look at work, I think about how much I should charge, instead of how much I dare charge, and it seems to appeal to the people who want a professional.

 

[satcom]

Absolutely! My most recent revelation came when you guys started talking about raising pricing when calls and work slow down, rather than lowering them.

When I look at work, I think about how much I should charge, instead of how much I dare charge, and it seems to appeal to the people who want a professional.

Yes, when work gets slow, you raise your prices and work less hours for more money, the problem is most think you lower prices and work more hours, and that is what they tend to do.

 

[Mr. Wizard]

I have always held the idea that it's better to bid high and not get the job than to bid low and loose your butt. My revalation came some time ago when I told a customer it would take me a couple of days to calculate the loads he had and was going to add so I could properly size his service. He literally called me over 50 times over the next couple of days, kind of a "are we there yet?" type of torture. My numbers were hovering close to $4000, but the last phone call he asked if I had a price for him, and I said yes, you're looking at $8500, and he said come and start work. I had told him $8500 due to me getting irritated at his non-stop calling, but I won the job. After that I have raised my prices with first time customers, kind of a testing ground, and to my joy, still have just as much work as I've had, with no loss in customers, and am making more than I was.

 

[benaround]

Moral of the story, if you can't charge enough for a service call, you can always start

changing oil and filters for a living.

 

[mcclary's electrical]

moral of the story, if you can't charge enough for a service call, you can always start

changing oil and filters for a living.

wtf?...........

 

[LarryFine]

Moral of the story, if you can't charge enough for a service call, you can always start changing oil and filters for a living.

wtf?...........

Think "Jiffy-Lube."

 

[staticcontrol]

being a good listener is paramount!!!!!!!!

being a good listener is paramount!!!!!!!!

Hi everyone,

I have run into some crazy home owners lately. Hate to admit it, but I really want to lash out at them and punch them inn the face for wasting my time.

senerio......went to a house to day. this guy has a shed about 25'-30' away from his house. He simply wants a light and switch in there and maybe an outlet.

He proceeds to explain how he would do the job and mentions he'd do it himself but he's unsure. Then he asks specific questions like....so what kind of pvc? what size? why pvc over uf? how deep to dig? trench shovel? etc. I almost said "sounds like you're gonna do this yourself and need a tutorial." What a waste. I'd be surprised if this ass calls me back. Oh, I gave a price of 550- 630 depending on what he wants. Includes all material and home run. BARGAIN but not undercutting any electrician.

 

[bradleyelectric]

Hi everyone,

I have run into some crazy home owners lately. Hate to admit it, but I really want to lash out at them and punch them inn the face for wasting my time.

senerio......went to a house to day. this guy has a shed about 25'-30' away from his house. He simply wants a light and switch in there and maybe an outlet.

He proceeds to explain how he would do the job and mentions he'd do it himself but he's unsure. Then he asks specific questions like....so what kind of pvc? what size? why pvc over uf? how deep to dig? trench shovel? etc. I almost said "sounds like you're gonna do this yourself and need a tutorial." What a waste. I'd be surprised if this ass calls me back. Oh, I gave a price of 550- 630 depending on what he wants. Includes all material and home run. BARGAIN but not undercutting any electrician.

Would you be providing the trench at that price?

You know you could tell him you would give him that detailed of a scope when he signs you proposal and gives you the deposit.

 

[jmsbrush]

Hi everyone,

I have run into some crazy home owners lately. Hate to admit it, but I really want to lash out at them and punch them inn the face for wasting my time.

senerio......went to a house to day. this guy has a shed about 25'-30' away from his house. He simply wants a light and switch in there and maybe an outlet.

He proceeds to explain how he would do the job and mentions he'd do it himself but he's unsure. Then he asks specific questions like....so what kind of pvc? what size? why pvc over uf? how deep to dig? trench shovel? etc. I almost said "sounds like you're gonna do this yourself and need a tutorial." What a waste. I'd be surprised if this ass calls me back. Oh, I gave a price of 550- 630 depending on what he wants. Includes all material and home run. BARGAIN but not undercutting any electrician.

So how did you handle the call and did you charge a service fee for coming out there?

 

[Leestarkweather]

"You know you could tell him you would give him that detailed of a scope when he signs you proposal and gives you the deposit."

This is so true. I spent the first 10 years of my contracting life building a great rep with my industrial customers. During the 2 recessions (81 and 91)
most corps had bean counters dictating that a 2nd and many times 3rd quote had to be obtained. Even well experienced facilities staff engineers can't alway write a good scope of work/RFQ. I found out that I was becoming the first one to be called, and all my questions/answers/insights were being supplied to the 2nd and 3rd bidder. Sometimes, 2 weeks after the verbal job walk I'd receive a written scope, and "bingo" there were a lot of issues clearly laid out that weren't clear on (my) 1st job walk.

So I started requesting: (a) Job walks with all bidders at one time, so all ideas/missed items would be shared. (b) Simultaneous bid opening at facility office. (3) Permission to bid based on the exact scope of the walk, with each ommission listed as an adder to the base bid.

A few facility guys were miffed, but over the years I always made it clear that I was trying to make their lives easier. When I consistently got all or most of their work, I would be more sharing to make them look better (nobody's boss is impressed when the requests for extra work orders start coming in the day the job starts).

And on design/build (most of my projects), finance would ask (at time of bid) for line item breakdowns and costs of materials/markups/labor rates. So I told them either "T&M" per our published rate schedule, or "I will be happy to provide an outline of cost components when we receive the P.O."

Still doing it to this day. I don't design/bid/disclose anything for the benefit of my competitors. Always for the benefit of my customers (design) and only for my corps' benefit (bid and disclose).

 

[jmsbrush]

"You know you could tell him you would give him that detailed of a scope when he signs you proposal and gives you the deposit."

This is so true. I spent the first 10 years of my contracting life building a great rep with my industrial customers. During the 2 recessions (81 and 91)
most corps had bean counters dictating that a 2nd and many times 3rd quote had to be obtained. Even well experienced facilities staff engineers can't alway write a good scope of work/RFQ. I found out that I was becoming the first one to be called, and all my questions/answers/insights were being supplied to the 2nd and 3rd bidder. Sometimes, 2 weeks after the verbal job walk I'd receive a written scope, and "bingo" there were a lot of issues clearly laid out that weren't clear on (my) 1st job walk.

So I started requesting: (a) Job walks with all bidders at one time, so all ideas/missed items would be shared. (b) Simultaneous bid opening at facility office. (3) Permission to bid based on the exact scope of the walk, with each ommission listed as an adder to the base bid.

A few facility guys were miffed, but over the years I always made it clear that I was trying to make their lives easier. When I consistently got all or most of their work, I would be more sharing to make them look better (nobody's boss is impressed when the requests for extra work orders start coming in the day the job starts).

And on design/build (most of my projects), finance would ask (at time of bid) for line item breakdowns and costs of materials/markups/labor rates. So I told them either "T&M" per our published rate schedule, or "I will be happy to provide an outline of cost components when we receive the P.O."

Still doing it to this day. I don't design/bid/disclose anything for the benefit of my competitors. Always for the benefit of my customers (design) and only for my corps' benefit (bid and disclose).

That's some very good information, thank you for sharing.

 

[cowboyjwc]

Moral of the story, if you can't charge enough for a service call, you can always start

changing oil and filters for a living.

He didn't charge $75 to change the oil and filters, he chagned the oil, filter, air filter, added an additive, and replaced the wiper blades. It was $75 with materials and labor.

 

[ceb58]

He didn't charge $75 to change the oil and filters, he chagned the oil, filter, air filter, added an additive, and replaced the wiper blades. It was $75 with materials and labor.

The guy was a good up-seller. He had his foot in the door ( more like Jim's van in the bay) but he was able to up-sell the wipers, filter and additive. That's something I/we need to do better. Look around suggest dimmers, wall controlled speed switches for the fans, repair handyman/ DIY electrical work. You have your foot in the door it's worth the try.

 

[220/221]

I say this to myself often.

This is a tough way to earn a living.

 

[hardworkingstiff]

I have always held the idea that it's better to bid high and not get the job than to bid low and loose your butt. My revalation came some time ago when I told a customer it would take me a couple of days to calculate the loads he had and was going to add so I could properly size his service. He literally called me over 50 times over the next couple of days, kind of a "are we there yet?" type of torture. My numbers were hovering close to $4000, but the last phone call he asked if I had a price for him, and I said yes, you're looking at $8500, and he said come and start work. I had told him $8500 due to me getting irritated at his non-stop calling, but I won the job. After that I have raised my prices with first time customers, kind of a testing ground, and to my joy, still have just as much work as I've had, with no loss in customers, and am making more than I was.

I've experienced the same type of event. Good customers will pay for good service. Bad customers should be avoided (you can't please them, ever). It's easy to avoid bad customers, don't lower your price to their level.