I want to start an electrical contracting business in WV. I have heard about a franchise called Mr.Electric. www.mrelectric.com I don't know if i should go with my own system or the Mr. electric way.Is there anyone that knows anything about this franchise? please share your experience Any input will be helpful.
Electrical franchise. Are they good?
- Thread starter khixxx
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jeff43222
Senior Member
- Location
- Minneapolis, Minnesota
Re: Electrical franchise. Are they good?
They operate here in Minneapolis, too. I don't have any personal or indirect knowledge of them or their system, though.
What I do know is that a large franchise contractor (Candlelight, HQ in Colorado) recently pulled out of this market because they weren't making enough money. They had the largest ad in the yellow pages.
I'd bet that a franchise would make you pay a buy-in fee, plus there are probably lots of other fees you have to send back to headquarters. You also would have to toe the company line and run "your" business their way. In return, of course, you'd probably get a reasonably steady stream of clients.
I much prefer being completely independent. I get to run my business as I see fit, and I don't have to answer to some corporate honcho. Since our line of work is very labor-intensive, franchises don't really have much advantage because they can't take advantage of economies of scale. Retailers usually can't compete on price with big-box stores, but I certainly can compete on price with franchised contractors. I can definitely compete on service.
As a franchisee, you're still going to be working to make the parent company more money. As an independent, you make all the money yourself.
[ February 05, 2005, 03:51 PM: Message edited by: jeff43222 ]
They operate here in Minneapolis, too. I don't have any personal or indirect knowledge of them or their system, though.
What I do know is that a large franchise contractor (Candlelight, HQ in Colorado) recently pulled out of this market because they weren't making enough money. They had the largest ad in the yellow pages.
I'd bet that a franchise would make you pay a buy-in fee, plus there are probably lots of other fees you have to send back to headquarters. You also would have to toe the company line and run "your" business their way. In return, of course, you'd probably get a reasonably steady stream of clients.
I much prefer being completely independent. I get to run my business as I see fit, and I don't have to answer to some corporate honcho. Since our line of work is very labor-intensive, franchises don't really have much advantage because they can't take advantage of economies of scale. Retailers usually can't compete on price with big-box stores, but I certainly can compete on price with franchised contractors. I can definitely compete on service.
As a franchisee, you're still going to be working to make the parent company more money. As an independent, you make all the money yourself.
[ February 05, 2005, 03:51 PM: Message edited by: jeff43222 ]
bradleyelectric
Senior Member
- Location
- forest hill, md
Re: Electrical franchise. Are they good?
realize you are going to have to make about $500 a day to make it in this business. That would mean to bid your labor at that and not cheaper to try to get more work. There really is no sence in being as busy as you can be and have to take money out of long term savings to pay your bills at the end of the month. People will pay that.
realize you are going to have to make about $500 a day to make it in this business. That would mean to bid your labor at that and not cheaper to try to get more work. There really is no sence in being as busy as you can be and have to take money out of long term savings to pay your bills at the end of the month. People will pay that.
Re: Electrical franchise. Are they good?
I checked into this when it first hit CA. As I recall you get to use the recognized name and are assigned an exclusive territory. You are charged a fee for the leads that they give you, then pay a percentage of the profits to them also if you get a job out of the lead.
Everybody starts out small. Work on developing a customer base of your own. If you do great work, have fair prices and run an honest business and perscribe to top notch business ethics you will do better on your own. Treat your customers well and they will be loyal to you forever. You will soon find yourself getting referrals to their friends and family. And so on and so on, it will snowball from there. Work hard and be fair, take pride in what you do and never compromise your integrity, morals or ethics. A mans word and a handshake go a long way.
These principles have worked well for me. I am able to demand top dollar and my clients realize that it is money well spent. I have never had a customer dispute/complain about an invoice amount because they know that I am absolutely 100% fair 100% of the time. Because of this I have more work than you can even imagine.
A six figure income is pretty easy to accomplish in this business if you work want it. Nobody is going to hand you anything. Not even Mr. Electric
I checked into this when it first hit CA. As I recall you get to use the recognized name and are assigned an exclusive territory. You are charged a fee for the leads that they give you, then pay a percentage of the profits to them also if you get a job out of the lead.
Everybody starts out small. Work on developing a customer base of your own. If you do great work, have fair prices and run an honest business and perscribe to top notch business ethics you will do better on your own. Treat your customers well and they will be loyal to you forever. You will soon find yourself getting referrals to their friends and family. And so on and so on, it will snowball from there. Work hard and be fair, take pride in what you do and never compromise your integrity, morals or ethics. A mans word and a handshake go a long way.
These principles have worked well for me. I am able to demand top dollar and my clients realize that it is money well spent. I have never had a customer dispute/complain about an invoice amount because they know that I am absolutely 100% fair 100% of the time. Because of this I have more work than you can even imagine.
A six figure income is pretty easy to accomplish in this business if you work want it. Nobody is going to hand you anything. Not even Mr. Electric
goldstar
Senior Member
- Location
- New Jersey
- Occupation
- Electrical Contractor
Re: Electrical franchise. Are they good?
I agree with all the others on this. You're much better off doing business on your own than through a franchise. If you are the type of person that is a good or outstanding electrician but has no administrative or business skills I can see how this might seem attractive. A franchise will provide all the necessary things like advertising, logos, leads, etc. but in the long run you will still have to run the business. So, my answer to you is that you should take the plunge slowly and surely, like we all have, make contacts, do small jobs, develop your business skills and start making money without having to pay a "vig" to a franchise company. Doing business and competitive bidding is tough enough without having to pay someone to tell you how to do it.
[ February 06, 2005, 08:16 AM: Message edited by: goldstar ]
I agree with all the others on this. You're much better off doing business on your own than through a franchise. If you are the type of person that is a good or outstanding electrician but has no administrative or business skills I can see how this might seem attractive. A franchise will provide all the necessary things like advertising, logos, leads, etc. but in the long run you will still have to run the business. So, my answer to you is that you should take the plunge slowly and surely, like we all have, make contacts, do small jobs, develop your business skills and start making money without having to pay a "vig" to a franchise company. Doing business and competitive bidding is tough enough without having to pay someone to tell you how to do it.
[ February 06, 2005, 08:16 AM: Message edited by: goldstar ]
electricmanscott
Senior Member
- Location
- Boston, MA
Re: Electrical franchise. Are they good?
This is a great idea. If your name is "Mr Electric". Otherwise go solo.
This is a great idea. If your name is "Mr Electric". Otherwise go solo.
Re: Electrical franchise. Are they good?
Like my dad always said " Never go into business with someone if you can go into business yourself"
Maybe Mr. Electric or the others should do an infomercial on late night TV.
You are better doing it yourself and keep the profits 100% to yourself.
Like my dad always said " Never go into business with someone if you can go into business yourself"
Maybe Mr. Electric or the others should do an infomercial on late night TV.
You are better doing it yourself and keep the profits 100% to yourself.
charlie tuna
Senior Member
- Location
- Florida
Re: Electrical franchise. Are they good?
they give you the "leads" that they get from the advertising "you" pay for!!!! also, if you make money---you share it with them, if you loose money---you eat it!!! great partnership!!! for them!!!
another thing, about ten years ago i was in a mike holt business class and he told us a story about having too many customers. he asked the class "how many contractors felt they had too many customers and worried how they could cover the work?". half the class raised their hands! he then explained how to correct the situation -- get rid of the "trouble customers"--slow pay --complainers -- etc... as he explained "tell them your really just too busy for them and recommend your competitor"! i thought about it and agreed, i cut about fifteen per cent of my problem customers, and it worked! it was a scarry thing to do, but it made my life alot happier, and i could treat my good customers with better service, and i probibly picked up some new customers. it taught me how to say "no" to someone who was asking for unreasonable work requests! one of them was a large office building complex and they couldn't believe it---they told everyone in town --- and i picked up three or four good accounts from the people they told!!!!
they give you the "leads" that they get from the advertising "you" pay for!!!! also, if you make money---you share it with them, if you loose money---you eat it!!! great partnership!!! for them!!!
another thing, about ten years ago i was in a mike holt business class and he told us a story about having too many customers. he asked the class "how many contractors felt they had too many customers and worried how they could cover the work?". half the class raised their hands! he then explained how to correct the situation -- get rid of the "trouble customers"--slow pay --complainers -- etc... as he explained "tell them your really just too busy for them and recommend your competitor"! i thought about it and agreed, i cut about fifteen per cent of my problem customers, and it worked! it was a scarry thing to do, but it made my life alot happier, and i could treat my good customers with better service, and i probibly picked up some new customers. it taught me how to say "no" to someone who was asking for unreasonable work requests! one of them was a large office building complex and they couldn't believe it---they told everyone in town --- and i picked up three or four good accounts from the people they told!!!!
Re: Electrical franchise. Are they good?
Best advice I ever got was "The only partner to go into business with is someone you're sleeping with!"
With that being said; contact Mr. Electric and get their franchise info. Look at. Have your attorney and accountant look at it. Look at it again. Then make your decision.
We had a Mr. Electric in our area but they disappeared. Couldn't find out why.
I think your best bet is to try it on your own then decide if a franchise is for you.
Best advice I ever got was "The only partner to go into business with is someone you're sleeping with!"
With that being said; contact Mr. Electric and get their franchise info. Look at. Have your attorney and accountant look at it. Look at it again. Then make your decision.
We had a Mr. Electric in our area but they disappeared. Couldn't find out why.
I think your best bet is to try it on your own then decide if a franchise is for you.
luckyshadow
Senior Member
- Location
- Maryland
Re: Electrical franchise. Are they good?
I looked at the Mr. Electric website. They put on a good show. But if it's that great why so few of them around. Another thing I saw that bothers me , as an electrician, is they state service calls 24 / 7 no additional charge. Does this mean you make the same money doing middle of the night / weekend calls as those during the weekdays 8-4 ??
I looked at the Mr. Electric website. They put on a good show. But if it's that great why so few of them around. Another thing I saw that bothers me , as an electrician, is they state service calls 24 / 7 no additional charge. Does this mean you make the same money doing middle of the night / weekend calls as those during the weekdays 8-4 ??
electricmanscott
Senior Member
- Location
- Boston, MA
Re: Electrical franchise. Are they good?
I know a guy who worked for a Mr E franchise. From what he told me forget about it! Also I find the uniforms hideous.
I know a guy who worked for a Mr E franchise. From what he told me forget about it! Also I find the uniforms hideous.
txsparky
Member
- Location
- Conroe, Texas
Re: Electrical franchise. Are they good?
One of the Top 500 franchises.. http://www.nfpa.org/itemDetail.asp?categoryID=529&itemID=18307&URL=Publications/necdigest?/Industry%20news#c
[ February 08, 2005, 12:11 AM: Message edited by: txsparky ]
One of the Top 500 franchises.. http://www.nfpa.org/itemDetail.asp?categoryID=529&itemID=18307&URL=Publications/necdigest?/Industry%20news#c
[ February 08, 2005, 12:11 AM: Message edited by: txsparky ]
Re: Electrical franchise. Are they good?
I owned a Mr. Electric franchise Its a good idea if your area will accept the pricing and you are willing to upsell every job. we spent more time running around giving estimates that were priced too high. We wound up with a lot of $75 dollar service calls nd nothing else you can't make money giving estimates and $75 service calls. My son refused to upsell he said he was an electrician not a salesman. you will pay them 8% of everything you do and have to buy paper from them.
I know a lot of their franchises that do very well but it did not work for me and cost me a lot of money.
[ February 08, 2005, 01:12 PM: Message edited by: laidman ]
I owned a Mr. Electric franchise Its a good idea if your area will accept the pricing and you are willing to upsell every job. we spent more time running around giving estimates that were priced too high. We wound up with a lot of $75 dollar service calls nd nothing else you can't make money giving estimates and $75 service calls. My son refused to upsell he said he was an electrician not a salesman. you will pay them 8% of everything you do and have to buy paper from them.
I know a lot of their franchises that do very well but it did not work for me and cost me a lot of money.
[ February 08, 2005, 01:12 PM: Message edited by: laidman ]
jeff43222
Senior Member
- Location
- Minneapolis, Minnesota
Re: Electrical franchise. Are they good?
I also dislike the idea of upselling. I take the time to listen to potential clients, and I make suggestions for things I think might work well for them, but the advice I give is the same as the advice I would give a good friend.
Just yesterday I went out on an estimate where the homeowner's husband was concerned about overload/hazard because of all the devices plugged into some power strips. It would have been a costly (i.e., profitable) job to add circuits and devices (old house, second floor, no easy route to the panel). I gave her my honest opinion that the current setup was safe and that adding receptacles and circuits in that room would cost her more than it was worth. Net result: No sale for me.
In the end, I want people to be happy after they've done business with me. I think they would be less happy if I had to do business according to some franchise's rules.
I also dislike the idea of upselling. I take the time to listen to potential clients, and I make suggestions for things I think might work well for them, but the advice I give is the same as the advice I would give a good friend.
Just yesterday I went out on an estimate where the homeowner's husband was concerned about overload/hazard because of all the devices plugged into some power strips. It would have been a costly (i.e., profitable) job to add circuits and devices (old house, second floor, no easy route to the panel). I gave her my honest opinion that the current setup was safe and that adding receptacles and circuits in that room would cost her more than it was worth. Net result: No sale for me.
In the end, I want people to be happy after they've done business with me. I think they would be less happy if I had to do business according to some franchise's rules.
Re: Electrical franchise. Are they good?
you could have turned duplex into two gang boxes in several locations for additional receptacles if load was okay; several locations= fewer trip hazards, extension cord shorts go away. a few bucks for the trip. That would not be a rip off.
paul
you could have turned duplex into two gang boxes in several locations for additional receptacles if load was okay; several locations= fewer trip hazards, extension cord shorts go away. a few bucks for the trip. That would not be a rip off.
paul
jeff43222
Senior Member
- Location
- Minneapolis, Minnesota
Re: Electrical franchise. Are they good?
I did consider that idea, but I nixed it.
The house in question has walls of plaster/lath construction, and the boxes are small metal ones with steel BX running to them. Often in these houses I find that the outlet boxes contain more wiring than just the wiring for that outlet -- they are used as j-boxes for other outlets, too. All of this makes it extremely difficult to make modifications to existing outlet boxes. Any real change to the existing electrical configuration would require major surgery.
The power strips in question were all feeding computers, faxes, etc., and they were under/behind desks. Nothing was drawing all that much current, and the homeowner said that they didn't have any problems with breakers tripping or computers crashing. I surmised that the current setup, while not ideal, was safe. Adding receptacles/circuits would have been very expensive, and I just didn't see how it could be justified.
I did consider that idea, but I nixed it.
The house in question has walls of plaster/lath construction, and the boxes are small metal ones with steel BX running to them. Often in these houses I find that the outlet boxes contain more wiring than just the wiring for that outlet -- they are used as j-boxes for other outlets, too. All of this makes it extremely difficult to make modifications to existing outlet boxes. Any real change to the existing electrical configuration would require major surgery.
The power strips in question were all feeding computers, faxes, etc., and they were under/behind desks. Nothing was drawing all that much current, and the homeowner said that they didn't have any problems with breakers tripping or computers crashing. I surmised that the current setup, while not ideal, was safe. Adding receptacles/circuits would have been very expensive, and I just didn't see how it could be justified.
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