Electrician's Hourly Rates

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Looking at these last few posts on housing costs, taxes and education....the laughter seems to have stopped.

One really has to sit back and take stock of what their needs, wants and desires are - not only for today, but in the imminent future.

If you can accomplish these financial obligations at $50/man hour...go for it. If you cannot, you have only two choices:
- work more
- charge more

There is a fine line where both shall meet....
 
Sorry - just got back in - I really would like to learn more about the overhead costs, etc. - I've always struggled with that.
My father started our business back in the early 80's and we've always survived, with some good and bad times - one point when residential construction was booming in this area about 10 years ago we had approx. 14 employees in the field. My father retired about 2 years ago and my younger brother and I run the business.
We are incorporated, and I've tried to estimate our per hour costs. We pay full health care for our employees and families, we have a Simple IRA retirement plan. I total all of our taxes, insurances, gas, etc. and then divide by the total hours worked per month/year, etc. Of course that doesn't always work because this time of year 3 to 4 of us are on unemployment, leaving only one or 2 people working parttime, taking care of service calls, etc. That doesn't pay the health insurance costs ($3000) per month, that's for sure. My calculated costs range from $25 per hour for our apprentices, to $35-$38 for our licensed guys, incl. myself. And I pay myself $20/hr. for a 10-year master electrician. When we are working, we do all right but definitely not getting rich. But the competition here is very tough for new residential. I just finished up a bid for a new Walgreens store and figured about 10% markup on materials and labor, based on some recommendations from an experienced commercial elec. friend.
Does anyone have any input on these numbers? I'd sure appreciate the help.
I'll let you know where I came in on the commercial bid when I find out.
 
dclauria said:
I just have to laugh when I hear about these $75-$100 rates.
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I wouldn't. Here in Viringia Beach my company charges $115/Hr. And there are other companies in the area who charge more around $120-$130/Hr. It is what it is, and people pay it.
 
BryanMD said:
Don't confuse gross sales with profit.

Here we go again ;)
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I am not, I know a lady who owns a day care and does very well, I would open one if I thought people would drop their little ones at a day care center run by a man LOL. That and i would only be in business about 3 weeks before I was completely insane.
 
dclauria said:
Sorry - just got back in - I really would like to learn more about the overhead costs, etc. - I've always struggled with that.
My father started our business back in the early 80's and we've always survived, with some good and bad times - one point when residential construction was booming in this area about 10 years ago we had approx. 14 employees in the field. My father retired about 2 years ago and my younger brother and I run the business.
We are incorporated, and I've tried to estimate our per hour costs. We pay full health care for our employees and families, we have a Simple IRA retirement plan. I total all of our taxes, insurances, gas, etc. and then divide by the total hours worked per month/year, etc. Of course that doesn't always work because this time of year 3 to 4 of us are on unemployment, leaving only one or 2 people working parttime, taking care of service calls, etc. That doesn't pay the health insurance costs ($3000) per month, that's for sure. My calculated costs range from $25 per hour for our apprentices, to $35-$38 for our licensed guys, incl. myself. And I pay myself $20/hr. for a 10-year master electrician. When we are working, we do all right but definitely not getting rich. But the competition here is very tough for new residential. I just finished up a bid for a new Walgreens store and figured about 10% markup on materials and labor, based on some recommendations from an experienced commercial elec. friend.
Does anyone have any input on these numbers? I'd sure appreciate the help.
I'll let you know where I came in on the commercial bid when I find out.
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You are probably low. The guys around here who have had to look at commercial since the housing started to dry up are giving it away. I like to do two small commercial Jobs and two custom homes a year the rest is rehab, remodel, service. I am having a tough time with the commercial side now that the larger home wiring guys are poking around.
 
$45/hr sounds like sidework prices..Sounds like you are selling your services for much less then you are worth....Sounds like you area needs a strong union presence to establish a good standard wage....
 
chevyx92 said:
I wouldn't. Here in Viringia Beach my company charges $115/Hr. And there are other companies in the area who charge more around $120-$130/Hr. It is what it is, and people pay it.
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Its just the cost of living out here. It varies from state to state, as others have mentioned. When I worked in Indiana 2 years ago I billed out $110.00 per hour for me and a qualified helper on service work. I paid him $20.00 per hour. Never had a complaint on billing or from my helper. I agree it is what it is. local competitive wages and rates, who is licensed, bonded, etc. and has good references.
 
splinetto said:
$45/hr sounds like sidework prices..Sounds like you are selling your services for much less then you are worth....Sounds like you area needs a strong union presence to establish a good standard wage....
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I live in Michigan and am a member of IBEW 275. I have been on Book 1 for 2 1/2 years. At the turn of the last century we went from all of our nearly 400 member local working to 200 to 250 on the books in about 6 months.

None of the locals in Michigan have all their guys out working. Our scale is 25 per hour on the check with a total of about 35 for the entire package. We are competing with not only non-union contractors charging 50 bucks an hour or less, but non licensed workers charging 25 to 40 dollars per hour.

Michigan is in a one state depression. We are #1 in the US for unemployment and foreclosures. There are licensed electricians here that would not turn down 20 dollars per hour with no benefits just to keep the bank from taking their homes.

I am hoping things change soon. I have had to go out of state for work and that is no fun. Right now the only call on our books is in another local and is 85 or 90 miles one way. I don't know if I will take it or not. It may be *months* before another call comes in.
 
As Satcom once told me. Look in the front of the phone book to see that rates they charge. Add the additional knowledge and responsibilities that we have and some will work for less than half that?

Heck Sears appliance repair charges $125 just to show up at my door to tell me my washer is not working.
 
hourly rates

hourly rates

I work for a Union shop in Western Ma., my hourly rate is $29 and change plus health insurance, my annuity fund and my pension fund (total package around $43 per hour). I believe that my shop bills me out at $65-$75 per hour. Without the benefits that I recieve, my future as well as my family's future would be pretty bleak. Just imagine looking ahead to retirement and realizing that you have nothing saved and no way to save anything because your weekly paycheck is stretched so tight. God forbid someone were to get hurt and have no insurance to cover the cost, could wipe someone out! I thank God everyday for the fact that my shop is able to charge what they do so that they can pass on much needed benefits to their help! For those who balk at paying the regional rates, I wonder what how they would react if their corporate employers took away their benefits so they could provide more affordable services to their own clients. The cost of running a business is expensive and those costs cannot be absorbed, they have to be passed on to the consumer. If the consumer can't afford the rate, then maybe they shouldn't be getting the work done! Sorry so long, got a nerve pinched there!
 
dcspector said:
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.
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I think it is more like John Q. Public thinks the rates are high and are looking to save a buck when they can. I doubt they care one whit why they are what they are.
 
EC rates vs. location

EC rates vs. location

Yup! The amount of what you charge is direct proportional to: where you work, not live. Size of company, type of work you do, kind of trucks and equipment you have etc.. Overhead. In California, housing recession or not, I charge $100 per hour. Considering that my rent is 2k a month and my truck payment is $650, $100 an hour is realistic. Why is it then that in socal, many contractors live in the inland empire and work in the coastal areas.
 
For those of you with young children that are paying $4K to $6K for primary schooling don't start complaining now - the worst is yet to come. Private colleges today are in the $40k + area and you can be rest assurd that by the time your children are ready to go it will be higher than that. Talk about sticker shock. Start looking into State schools now.

Anyway, as many have mentioned the going labor rates in different areas vary. Here in NJ they even vary by county (though I can't understand why). The going rate for a 200 amp service upgrade in one county is around $2400 while just one county over guys are installing them for $1600. Material costs are going to be just about the same no matter what so I figure the difference is not only the labor rate but what the EC is willing to make as profit.

The way I see it there shouldn't be that great a disparity in pricing. If you can make the extra $800 in a given area why go in at $1600 and leave the $800 on the table ? Someone who goes in at 33% less than your price didn't do any market research.
 
If you wer working for someone else making $20.00/hr and you got your bills paid and a little extra for fun then went into business for your self charging double that at $40.00/hr you would consider yourself to be making money.you work from home,use the same truck you had,same tools,same home phone and cell.How do you tell someone like this they are not charging enough.They might spend for insurance and advertising but still they look at the 40 and say I was making it on 20 and now its doubled.
 
bikeindy said:
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.
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What's wrong with public education? If you lived where there are great public schools then you wouldn't need to spend extra money on education.
 
Rewire said:
If you wer working for someone else making $20.00/hr and you got your bills paid and a little extra for fun then went into business for your self charging double that at $40.00/hr you would consider yourself to be making money.you work from home,use the same truck you had,same tools,same home phone and cell.How do you tell someone like this they are not charging enough.They might spend for insurance and advertising but still they look at the 40 and say I was making it on 20 and now its doubled.
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if at the end of the day, after paying all his new expenses, he still grossed $20/hr for himself, for every hour he worked (including increases for OT)...then you are right...

but if the self employed guy now works 80 hrs a week, instead of 40, and still grosses the same $800/week he did, well, tell me he's making money...
 
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