common method of estimating new homes

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77401 said:
If they are really interested in a low hourly rate then I'll offer them a half priced hourly rate. Then I'll send my slowest apprentices with some helpers hired off the corner, tell them not to hurry, and I won't supervise the job.
Can you guess which job I make more money on & how much the owner saves?
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That seems honest :roll:

So you hire some people of questionable ability, send them to the job and don't supervise it.
I'd say the person that makes the money is the guy you hired - because you will have to find someone to troubleshoot the whole stinking mess when things go "boom" when the power comes on. Now you are paying a "re-do" crew "out of pocket".

Good plan.
 
We have one simple theory that scares customers out of providing their own materials: If we don't supply the materials, we don't warranty the job. Furthermore, I explain to them that we will not be doing the job unless we provide the materials. It never hurts to walk away from a job.
 
77401 said:
If they are really interested in a low hourly rate then I'll offer them a half priced hourly rate. Then I'll send my slowest apprentices with some helpers hired off the corner, tell them not to hurry, and I won't supervise the job. Can you guess which job I make more money on & how much the owner saves?
Click to expand...
Unsupervised & unqualified may be illegal in many states, but I like the idea of giving the customer what they want.

Maybe send a forman in the mornings to lay out tasks & material, then leave the one JW a nextel, and bonus for not working backwards. The job could get SNAFU, but eventually its done, without having to see or hear that penny pincher constantly squeaking over my shoulder.
 
If customer is supplying the material I charge $50 an hour. If you can't bid it the way you normally do simply go to T & M and since they are supplying the M all you have left is the T.

If they watch I charge $60 P/HR.
If they help it's $70 P/HR.
Questions are answered at a rate of $10 per question.

One time a customer wanted to save money by running all of his own conduit and said he would help me to pull the wire also. I handed him the fish tape and waited at the first box with the wires stripped as he huffed and puffed and try to push the tape through. He finally got mad and said "so I'm paying you $50 an hour to just stand there while I do all the work." I said "no that's not true. You're paying me $5 an hour to stand here. You're paying me $45 an hour to know which wires go in that conduit when you finally get that fish tape through."
 
For all those that requested an opening charge list as I previously requested we need a "fax number" as My office manager has so requested and will send it to You.
 
KC is Steve the one You mentioned in Your PM ? I did fax that over on Friday. We did not have it in our computer I thought We did, just on a hard copy. Let Me know........Greg
 
Hey Triphase

Hey Triphase

Hey man, yeah steve is my boss, and we did get the fax, thats an interesting sheet, we recently had gotten a new homes blueprints and we have already given an estimate but we re ran the prints with this sheet and came in pretty close to the original estimate.

Thanx for all the info
 
I appreciate all the comments over the past few weeks. Since this post, as early as yesterday, I have been asked what I charge by the opening. This builder is one of the largest and has most of his electrical done by the same contractor for the past 5-8 years. Not knowing this EC, and now he's ill, and may not be be able to keep up with the new homes, the builder is interested in having a back- up, which could be me.
My questions are as follows:

1. Not knowing this existing electricians name and rates, should I take a stab at calling around in his local area, which is not in my normal territory, to get a feel for the opening prices? Or

2. Forget the opening price method and do it by the hour? The builder has already stated that he supplies the material, due to his ability to get the material supposedly cheaper, which I called him on the carpet as to this is one way he(the GC) takes away any mark up. Or

3. Ask the GC what his EC has been charging and under bid him? If I take this approach, I have learned in the past, when I had my business in Charlotte, that the electricians were the worst to kill the Industry Standard in the area for majorally under bidding each other. We all know what it's like to get beaten out of a job by a new guy with much lower prices than what's normal or healthy for the area. It's unfortunate, but greed can kill any trade.
I believe I can get this GC's work, I just feel I have one chance to be competitive and to be in the ball-park in his allotted amount for the electrical on his new homes.
 
1 Yes, Its public record, ask the inspection department who the EC is on a specific address.
2 Yes, but get paid weekly like an hourly worker. So you can quit anytime you want just like an hourly worker
3 the only reason to intentionally under bid someone is if your work is worth less.
 
common method of estimating new homes

Like what jefl43222 and aikeindy said. It is hard to tell someone what to charge because all of our profit margins are different. You really have to charge what you need and not worry about other electricians prices. If you are happy with you bid don't worry about what someone eles charges even if you don't get the job.I personally sell good service and neat work and hope I stand out above other electricians. Notice how many different opinions you get? That why you have to price what makes you happy and at the end of the day or job you have no regrets. Semper Fi. Buddy
 
New customer asked me how much for labor only on his package home. I told him "That is kind of like me bringing in the hamburger and all the fixings to your restaurant." He went "Oh" and 25 yrs later we are still doing business. For GCs just make sure they know that all product is there responsiblility including on time delivery, storage, suitablitiy, returns, broken and missing parts. All theirs.
 
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