Electrician's Hourly Rates

Status
Not open for further replies.
Its a good article and there have been several written on this topic. Whats the answer? Look at people wandering around aimlessly with a glazed look on their eyes in the big box stores electrical dept...(scary huh?)...trying to save a buck. John Q. Public thinks EC rates are pure profit. They don't realize the amount of Liability insurance, workers comp, material costs, fuel and vehicle costs the EC has to pay out.
 
Out of curiosity what is the going rate for an electrican in your neck of the woods? I can tell you in the small farming towns I am from it is no where near 100 dollars an hour. 35-40 would be much closer.
 
If I may butt in, I just wanted to second that comment on going rates. In Northern Michigan we have a small 5 person mostly residential contracting business, and we have been charging $50 per hour for our licensed guys and $40 for our apprentices. That's for T& M projects, and small bid projects that I estimate the labor on. We've had a lot of complaints in the last couple of years from customers not wanting to pay when they get their bill. Some refuse to pay. We recently got a call from another contractor with the same problem. He was calling around because a customer thought his rate of $45 was too high. He told me that another established contractor in the area told him $55/hr. I just have to laugh when I hear about these $75-$100 rates.
 
dclauria said:
In Northern Michigan we have a small 5 person mostly residential contracting business, and we have been charging $50 per hour for our licensed guys and $40 for our apprentices.
Click to expand...

Don't forget location can make a big difference. In your area how much do your 'licensed guys' cost you per hour?

In my area many licensed guys cost more then $50 per hour in wages and benefits and that does not even include the vehicles.

If the company I work for charged $50.00 per hour they would be losing money every hour. I don't mean losing profit I mean paying for the privilege of doing the work.
 
The union shops around Chicago, from what I've heard can charge any where from $85.00 to a little more than $100.00 an hour T&M depending on the size of the contract and what class of wireman.
 
russ said:
The union shops around Chicago, from what I've heard can charge any where from $85.00 to a little more than $100.00 an hour T&M depending on the size of the contract and what class of wireman.
Click to expand...

Along with regional differences in cost and rates...
like above distinguish between service and construction rates.

But whichever end of the business you are in (likely a mix of each),
you MUST know what YOUR costs are
before you can know what YOU need to charge
 
russ said:
The union shops around Chicago, from what I've heard can charge any where from $85.00 to a little more than $100.00 an hour T&M depending on the size of the contract and what class of wireman.
Click to expand...

one thing to bear in mind is economies of scale...if a shop has 100 men that they pay $65/hr total package, and bill them out for $85/hr for every hour worked that is $2,000/hr to cover overhead...($85-$65=$20 * 100 = $2000)

if a small 3 man shop pays $50/hr total package and bills $70/hr (so that they are under the high union rate)...they make $60/hr to cover overhead...is $60/hr really enough to cover overhead? especially if the owner is not in the field?

i don't know, but the numbers are interesting:D
 
dclauria said:
I just have to laugh when I hear about these $75-$100 rates.
Click to expand...

Yuk it up...

What does the average home cost in Michigan?
Property taxes?
Auto Insurance?
 
celtic said:
Yuk it up...

What does the average home cost in Michigan?
Property taxes?
Auto Insurance?
Click to expand...

lets see, here a starter home is $300k, you can expect to pay $8k in property taxes and $3k a year for full coverage on 2 personal vehicles...

that's a lot of fricken money...
 
celtic said:
Yuk it up...

What does the average home cost in Michigan?
Property taxes?
Auto Insurance?
Click to expand...

and along with Celtic.....Foreclosure rates?..dclauria you mentioned clients not willing to pay.....what does one do in foreclosure... lien?....no way no pay.
 
emahler said:
lets see, here a starter home is $300k, you can expect to pay $8k in property taxes and $3k a year for full coverage on 2 personal vehicles...

that's a lot of fricken money...
Click to expand...

Here you can get a nice home for 130K I have 4 vehicals insured at $2500 year, property tax on my home is $1800 year, workmans comp for me and 2 men working for me is $2100 year. Gas cost me $3800 in 2006 $5000 in 2007 and so far this year it is at $1300. with copper being down some over last year and the year before that has helped but it seems to be creeping up again. I charge $75 per hour right now and it is OK and I compete well at that price. But most of our work I charge flat rate and do better than $75 an hour per man. the best thing for me has been that we do not rely at all on new construction and so far this year we are 27% ahead of last year, and now we are in the middle of a house wiring job go figure.
 
dclauria said:
we have a small 5 person mostly residential contracting business, and we have been charging $50 per hour. I just have to laugh when I hear about these $75-$100 rates.
Click to expand...


In this area there are contractors charging $50.00 an hour but there are also those that charge well over $100.00 an hour. The real difference is the customers they work for and the way the company presents it's self.

The top earners will show up in uniform, name tags driving late model well lettered, well stocked vans or service vehicles and the techs. will be trained in customer service.

On the bottem end you will see pick-up trucks and what look like residential new contruction types that have little service experience.

There are many companies that rate somewhere in the middle.

Before you laugh, pick out the very top service company in the area and see what they charge. It can be a real eye opener. :)
 
emahler said:
lets see, here a starter home is $300k, you can expect to pay $8k in property taxes and $3k a year for full coverage on 2 personal vehicles...

that's a lot of fricken money...
Click to expand...
....and if you decide to send your children private grammer school, that starts at about $4k per year, per child.
 
celtic said:
....and if you decide to send your children private grammer school, that starts at about $4k per year, per child.
Click to expand...
I have two in High school @ $6500 per kid per year and one in grade school at $3300. I don't need the Government educating my kids.
 
Status
Not open for further replies.
Top