electrician rates
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Re: electrician rates
The key to your rate and no one else?s is FIRST identify your true cost.
If you know what your actual cost including benefits, taxes expenses etc, then you can determine your profit and overhead and then your sell price. Once you have completed this tedious task, figure out your crew size and then you can come up with an average rate by crew or project. This works for both competitive bidding and T&M rates. You would be surprised at what people in the same state charge. We have a client that charges 75 an hr in NYC and another down the road charges 50. who is right? The one that charges 75 is crying that he doesn?t have any work and blames it on the economy, when if he charged a more realistic rate he would have a lot more work. I guess what I am trying to get at is don?t worry about what everyone else charges because it will drive you crazy. Charge your rate that you can make an honest living at and you will be successful in business.
The key to your rate and no one else?s is FIRST identify your true cost.
If you know what your actual cost including benefits, taxes expenses etc, then you can determine your profit and overhead and then your sell price. Once you have completed this tedious task, figure out your crew size and then you can come up with an average rate by crew or project. This works for both competitive bidding and T&M rates. You would be surprised at what people in the same state charge. We have a client that charges 75 an hr in NYC and another down the road charges 50. who is right? The one that charges 75 is crying that he doesn?t have any work and blames it on the economy, when if he charged a more realistic rate he would have a lot more work. I guess what I am trying to get at is don?t worry about what everyone else charges because it will drive you crazy. Charge your rate that you can make an honest living at and you will be successful in business.
brian john
Senior Member
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- Leesburg, VA
Re: electrician rates
mcandels
While what you state is true.... The fact is your rates have to be competitive and the best way to figure that is knowing what your competition charges.
mcandels
While what you state is true.... The fact is your rates have to be competitive and the best way to figure that is knowing what your competition charges.
Re: electrician rates
One way to find area pricing, would be to open up your local telephone book to the telephone repair service section and see what your local phone company charges for service.
In my area they charge $110 for the first hour and $41 for each additional 1/2 hr.
Remember, they are basic two wire repairman, ring and tip.
They do not require all the schooling that electrical trades need, and update training.
They do not need a truck stocked with material and special tooling.
Their insurance and liability in less than ours.
So I would say in this area a master or journeyman electrician should ask a little more then Mr.Phones rate, and if a customer asked about your rate being high, just show them the phone book.
One way to find area pricing, would be to open up your local telephone book to the telephone repair service section and see what your local phone company charges for service.
In my area they charge $110 for the first hour and $41 for each additional 1/2 hr.
Remember, they are basic two wire repairman, ring and tip.
They do not require all the schooling that electrical trades need, and update training.
They do not need a truck stocked with material and special tooling.
Their insurance and liability in less than ours.
So I would say in this area a master or journeyman electrician should ask a little more then Mr.Phones rate, and if a customer asked about your rate being high, just show them the phone book.
pierre
Senior Member
- Location
- Westchester County, New York
Re: electrician rates
With the recent escalation of gas, insurance, wire, etc ... I think it is time to visit the pricing sheet to see how best to cope with these changing times.
Pierre
With the recent escalation of gas, insurance, wire, etc ... I think it is time to visit the pricing sheet to see how best to cope with these changing times.
Pierre
Re: electrician rates
Pierre,
We review our pricing every month, and update our price data, and every qtr., we review our fixed expenses, we didn't start to make money until we stopped looking at what the other guy was doing.
The worst thing you can do is price jobs by looking at someone else, they may not even know what there real costs are, and be operating in a loss mode and not realize it until they get in trouble. You have to find your own real overhead and operating expenses are, before you can price.
It is easy to competitive bid yourself out of business.
[ March 26, 2004, 07:29 PM: Message edited by: satcom ]
Pierre,
We review our pricing every month, and update our price data, and every qtr., we review our fixed expenses, we didn't start to make money until we stopped looking at what the other guy was doing.
The worst thing you can do is price jobs by looking at someone else, they may not even know what there real costs are, and be operating in a loss mode and not realize it until they get in trouble. You have to find your own real overhead and operating expenses are, before you can price.
It is easy to competitive bid yourself out of business.
[ March 26, 2004, 07:29 PM: Message edited by: satcom ]
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