Does size matter

[Rewire]

We are a small shop me and three techs each with a truck we usually hire summer helpers I am looking to expand another truck but finding the right person is tough.I don't work with my tools as I spend my time in securing the work.I was just cirious as to what the shop sizes are for the contractors who post and how does your size affect the work you seek.

 

[john_axelson]

Of Course It Does

Of Course It Does

It matters, because you and I can't do the type of work that a 600 to 700 man shop can do. You can't do the 20 plus million dollar electrical job in 9 months that they can do.

Now, if you are just talking about work between $100 and $500,000 then, no it doesn't matter. What you will find is that, unlike popular opinion, the 600 to 700 manshop probably has a lower overhead than the 3 to 5 man shop, especially when one of those 3 to 5 is totally overhead attempting to secure work. When I worked in the office for larger shops our office ratio was supposed to be 6 to 8 electricans for every office worker. Now I have always been more commercial/industrial based than residential, but the ratio still has to be close.

 

[haskindm]

Size matters. The more people you have on the payroll the more work you need to keep them busy. That should not be news to anyone. The problem is that the temptation is there to take jobs that you really do not want in order to "keep the workers busy". Unfortunately, if you lose a little on each job, you can't "make it up with volume". Grow only when you absolutely have to. Stay as small as you can and still compete, and be selective in the jobs that you choose. Just my perspective.

 

[teco]

It matters, because you and I can't do the type of work that a 600 to 700 man shop can do. You can't do the 20 plus million dollar electrical job in 9 months that they can do.

Now, if you are just talking about work between $100 and $500,000 then, no it doesn't matter. What you will find is that, unlike popular opinion, the 600 to 700 manshop probably has a lower overhead than the 3 to 5 man shop, especially when one of those 3 to 5 is totally overhead attempting to secure work. When I worked in the office for larger shops our office ratio was supposed to be 6 to 8 electricans for every office worker. Now I have always been more commercial/industrial based than residential, but the ratio still has to be close.

John has that so right. I keep a very small shop(for 19 years) 3 men tops. I install good size jobs because I do all commercial and industrial My overhead is larger the some of the bigger shops I know. We don't get the discounts on our insurances because we don't bring enough people to the table. Comp rates and other rates are the same. We all have taxes. I guess it like going to the convienence store for a gal of milk. Its cheaper at the chain supermarket because the sell more. IMO.

 

[ITO]

ummm self edit.

How are you coming to the conclusion that a smaller shop has higher overhead?