1 Year in business working for first high end builer

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relochris

relochris

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North Carolina
I've worked for a few contractors who still strap on tools, but for the first time I've worked for a real builder. They're a high end remodel company who has given me the chance to step in to replace their existing electrician (who has been fired). Now I have completed their punch list. Up till now I've done all of my work on an up front basis and this job has been done with no preconcieved price. I live in NC and am not quite sure what to charge. I plan on charging $65 for myself and $25 for my experienced helper whom I pay $13, and %15 on material. I'm comfortable with this but I don't want to short change myself nor do I want to discourage my client. I know this is vague, but I really need some advice.
 
I wish I could charge 105. I'm from the Northeast and the restrictions are so much looser down here. I thought it was low too which is probably why I'm behind on my bills. I would appreciate any more information you may have. How often do people think you're charging them too much. How many people think that they're getting a deal. What change is there in billing contractor to homeowner?
 
The $13 is cash. I'm struggling with the hourly for myself. One of the biggest concern I have is the gap between helper and me. If I'm @ 65 and the helper @25, then why would the builder pay without the helper. Am I over analyzing this?
 
I pay cash and take it as a draw. I pay the taxes as though the money were paid to me. That being said, this is a very expensive way to pay employees
 
The first thing you need to do is figure out what you need to charge per hour than you can go from there. You can use that figure to help you figure out how to price jobs, what to charge for T&M. Without this figure your basically just guessing. Ill try to find the site that will get you this number. It was origionally designed for plumbers but it works for EC too. Just give me a couple of minutes
 
It seems to me you are not giving yourself enough credit as a business.
I think if you were to find out what the going rates were in your area, you would be quite low. This is an indicator that you may not last long in your business.
 
http://costcalc.masterplumbers.com/

Here is the site I was talking about. It might be hard in your first year because you will have to estimate some of your costs. But answere as honest as you can. Hope this helps. Good luck. For what its worth I dont really care if someone tells me I charge to much. I know what I need to make and I dont see the point in being the cheap guy on the block. Youll never get ahead being the cheap dude. Youll be one of those guys driving a ratty van using cheap materials and doing the absolute minimun which will lead to less referals in the long run. You will be busy working for cheap. Beileve me I see it all the time.
 
relochris said:
The $13 is cash. I'm struggling with the hourly for myself. One of the biggest concern I have is the gap between helper and me. If I'm @ 65 and the helper @25, then why would the builder pay without the helper. Am I over analyzing this?
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I bill as a team. We work together for efficiency, for safety, for the helper to do the lower skilled work.
 
hope your helper never gets hurt on the job, or every $65 you ever make after that will be his. if you want to be in business, act like one and have proper insurance and payroll and charge your customers accordingly

sorry if i came off rude, not my intention.
 
Ok first some questions. Why did the last electrician get fired?
Did he get paid?
Were their change orders and how were they handled?
You must think of how much time it will take you to finish, figure out how much your time is worth. Give the GC a flat rate price.

If you work by the hour I think you are going to get in trouble with disputes.
You are going to have to get a ticket signed everyday, keep a daily log of activities including who was on site, conversations with the owner, meetings including who was present. Work in areas and other trades on site.
I know its flattering to be asked in but make sure you know how and when you are getting paid.
File the proper notices and set up a job account with your supplier for the job. Dont let the GC get behind in your money.
 
I think $13 an hour for what amounts to unskilled labor is pretty generous.

JMHO. He gets the chance to pick up some skills along the way.

I don't especially like the cash aspect of things. Its just an IRS problem waiting to bite both of you on the backside.
 
You are low even for your area. Find out why the other contractor got Fired.
Buy Number Cruncher from NSPG and find out what you should be charging. It was the best money I ever spent. We update it almost daily.. Super important.
Also Celtic posted on another form a contractor calculator that is good. Stop working into yourself into a hole. You need to now how much you need to charge and you are also putting yourself at risk. You probably don't have enough insurance to do the high end jobs and no workers comp for the employees. I know things are tough. and they are going to be tougher have your plan set.
 
You are now a business owner, not an electrician. As the owner you need to look at the "big picture" and factor in ALL of the expenses in running a business, not just what makes a good paycheck for you as a worker. This includes payroll (either figure a way to pay your helper legally or only do jobs that you can do yourself with no help), Workman's Comp., taxes, office expenses, secretarial/accounting help, insurance, etc. If you are not prepared to deal with these issues, get a job as an electrician working for someone else. Sounds harsh, but these are the facts. Many people jump into business before they are really ready and the vast majority of them fail.
 
I appreciate all of the suggestions and links you all have offered. I take no offense at the harsh words of some. I agree that I need to start being more of a business man or things are going to start slipping away. More great food for thought from this forum. Thank you
 
tonyou812 said:
http://costcalc.masterplumbers.com/

Here is the site I was talking about. It might be hard in your first year because you will have to estimate some of your costs. But answere as honest as you can. Hope this helps. Good luck. For what its worth I dont really care if someone tells me I charge to much. I know what I need to make and I dont see the point in being the cheap guy on the block. Youll never get ahead being the cheap dude. Youll be one of those guys driving a ratty van using cheap materials and doing the absolute minimun which will lead to less referals in the long run. You will be busy working for cheap. Beileve me I see it all the time.
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Aha! Now I know why I'm quite busy! :)
 
petersonra said:
I think $13 an hour for what amounts to unskilled labor is pretty generous.

JMHO. He gets the chance to pick up some skills along the way.

I don't especially like the cash aspect of things. Its just an IRS problem waiting to bite both of you on the backside.
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he said he was experienced helper
 
jrannis said:
Ok first some questions. Why did the last electrician get fired?
Did he get paid?
Were their change orders and how were they handled?
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These are the questions I'd be asking first and foremost. When the last guy got fired or walked from the job in process, those are both huge red flags. There can be perfectly acceptable reasons for either, but history tells us that there's generally something amiss with the builder. Successful builders do not all become successful by playing nice and assuring that their subs share in their success. Many will fire a sub at the drop of a hat if they think they can get the same quality for a nickel cheaper from someone else.
 
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