Geek Squad Services More Valuable Than Electrical Services?

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I give "free" estimates. I feel I have to, to remain competetive. Besides its my foot in the door to sell my services. Like the CC companies, the cost of the free estimates I give are included in everyones price weather the job is from an estimate or a "just get here and do it job" which is a big part of my business anymore.

I use the additude with customers that I will be their electrician for life. I re-enforce this in a number of ways. When I call them on the phone I ussually identify myself not by name but as "their favorite electrician". When I install or fix something I always tell them for exsample "Everytime you flip that switch I want you to think of me".

My goal is that when they think or hear about electricity, without taking a breath they think of me.

This may sound corny to some but its working for me. :grin:

Jeff
 
ElectricianJeff said:
I give "free" estimates. I feel I have to, to remain competetive. Besides its my foot in the door to sell my services. Like the CC companies, the cost of the free estimates I give are included in everyones price weather the job is from an estimate or a "just get here and do it job" which is a big part of my business anymore.

I use the additude with customers that I will be their electrician for life. I re-enforce this in a number of ways. When I call them on the phone I ussually identify myself not by name but as "their favorite electrician". When I install or fix something I always tell them for exsample "Everytime you flip that switch I want you to think of me".

My goal is that when they think or hear about electricity, without taking a breath they think of me.

This may sound corny to some but its working for me. :grin:

Jeff
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yet you are willing to punish these golden customers with higher prices in order to offer free estimates to people who will never buy from you?

if you really want to be competitive...charge for estimates...it will reduce your operating costs and allow you to give lower prices to customers....customers being people who actually buy your services...
 
Tiger Electrical said:
I think free estimates are more like running my hard-earned money through a shredder. I like Geek Squad's prices. I'll offer to match them.

Dave
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it's a simple concept...why is it so hard for many to grasp?
 
satcom said:
The bottom line is the consumer is paying for any and all perks, no free lunch, we go thru this with our rates, and I think it comes down to what the customer preceives as a deal, and not what a real deal is.
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les, i agree with you on this...and it has to be this way...

about 10-12 yrs ago, I met a plumbing contractor from detroit...his company at the time was doing $5-$7mil a year in residential service and repair...

he told me, and the words stick in my head until this day, "the customer pays for everything"

he added "if you want a $1mil house...a new mercedes...a helicopter...where do you have to get the money? from the customer..."

his point was, we don't print our own money...we have to earn it from the customer...the only way to get the things we want in life, is to convince the customers to pay us to give them what they want.

nothing is free...everything costs someone...let your customer pay, not you...
 
FWIW, I commend any company that can get top dollar for their services, whether it's Starbucks, Geek Squad, or the big flat rate service companies.

As I said in the other thread, I think these companies are only helping our industry, not hurting it. I just wonder when EC's are going to smarten up and start charging real prices for their work.
 
peter d said:
FWIW, I commend any company that can get top dollar for their services, whether it's Starbucks, Geek Squad, or the big flat rate service companies.

As I said in the other thread, I think these companies are only helping our industry, not hurting it. I just wonder when EC's are going to smarten up and start charging real prices for their work.
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My thoughts exactly.
 
emahler said:
bad analogy...i'm putting the price of the carwash into the tank of gas...and you're buying the gas BEFORE I give you the free car wash...

sign my contract and pay me first, and i'll give you a 'free' estimate all day long...

free estimates are losing propositions for 2 groups...the contractors and the paying customers....

the only people who win with 'free' estimates are the people who get 7 quotes on a $400 job to save $15 dollars...
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The idea is to get you to stop at station A instead of station B, then while at station A they can sell you a hot wax and while you wait chips and a soda.the idea of a free estimate is to get you to call me before electrician B then I have to sell you of my service.It is all part of my job just like cleaning the office toilet( I dont charge for this) Getting out of the hourly worker mentality is a must for running a business I do a lot of things to keep my business running that do not get directly billed to customers.I have to remember I am just another part of overhead no single customer pays my salary I have a written job description for myself and meeting with potential customers falls into that job desription.I look at free estimates as just another sales call.
 
Rewire said:
The idea is to get you to stop at station A instead of station B, then while at station A they can sell you a hot wax and while you wait chips and a soda.the idea of a free estimate is to get you to call me before electrician B then I have to sell you of my service.It is all part of my job just like cleaning the office toilet( I dont charge for this) Getting out of the hourly worker mentality is a must for running a business I do a lot of things to keep my business running that do not get directly billed to customers.I have to remember I am just another part of overhead no single customer pays my salary I have a written job description for myself and meeting with potential customers falls into that job desription.I look at free estimates as just another sales call.
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i understand what you are attempting to say...but you are missing the boat...

free estimates for us are analogous to the gas station giving the free car wash first, then hoping they convinced the customer to buy gas there.

you'll definitely get the customers to come to your gas station then...but at what cost?

it's not about an hourly worker mentality...i haven't had one of those since I can remember...

it's about understanding your costs and not just blindly robbing peter to pay paul (using profit from one thing to pay for a loss on another)

the basic premise behind free estimates is faulty...it's been faulty for years...but contractors are so ingrained with ancient thinking, that we are unable to get beyond it...

we still think that the low price is what every customer wants...we think that we are doing right by the customer to repair something, rather than replace, because it's cheaper at this moment...etc...

if you look at the resi service companies across the country that are really successful, and see how many offer free estimates.

if you are doing $10,000+ jobs...free estimates are fine.

if your job average is +/- $500...free estimates are a profit breaking endeavor...
 
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good question

good question

electricmanscott said:
My thoughts exactly.
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Why do so many EC's give their work away?? What is wrong with making a good profit? Is one of the reasons because there are so many handymans and hacks out there that you feel you have to compete with them?
 
bradleyelectric said:
Do you? How do you do it?
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I'm not an EC. I considered going out on my own for a while, and did a few jobs for myself, but I've put those plans on the shelf for a while.

Nonetheless, I want to see EC's succeed and stop selling themselves short. It's very discouraging to work in an industry that is well known for undercutting and prostituting itself, for lack of a better term. Higher rates will mean higher pay, better benefits and more bonuses for employees. It will make this industry better in the long run if EC's stop complaining about the other guys being "so expensive" and started charging more themselves.
 
hey...prostituting yourself is not bad if you are a $10,000 a night high class call girl...but the $20 girl at the elks convention...that's bad...:D

peter...bradley...it won't change until the cost of entry into the industry is raised...right now, you need about $3k and you're a contractor. You don't need any education...you don't need any understanding of business...heck, in some places you don't even need to be proficient in the trade...

when the cost of entry is so low, you are gonna have an industry full of bottom feeders...

now, if you can get up a few levels in the industry, you can make money. but on the entry level, fugetaboutit....
 
peter d said:
. It will make this industry better in the long run if EC's stop complaining about the other guys being "so expensive" and started charging more themselves.
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That's not happening anytime soon. Just look at the representation of the industry on this board. In my view anybody that takes the time to come here to learn is a step or two above those who don't bother. However.....how many times have topics gone on and on complaining about new code changes and "how much is this going to cost me?" We need to learn as a group that this will not cost you one penny and in fact will add to your profit because you are now selling a more expensive item.
 
emahler said:
peter...bradley...it won't change until the cost of entry into the industry is raised...right now, you need about $3k and you're a contractor. You don't need any education...you don't need any understanding of business...heck, in some places you don't even need to be proficient in the trade...

when the cost of entry is so low, you are gonna have an industry full of bottom feeders...

now, if you can get up a few levels in the industry, you can make money. but on the entry level, fugetaboutit....
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Where are you located? Where I am you do need to pass a 4 hour test. It is just that test and you can use the truck you just bought for $400. Liability insurance can be had for about $450. that is also required to get an active license. I believe there are some out there that don't carry it year round.

What would you consider to be a few levels up in the industry? Sometimes my best money comes from service changes.
 
The company that did my IT stuff sent us an invoice for $5,000.00, last January. They wanted a retainer for 2007 possible work, and they would bill against this retainer in December they would assess us a 2007 minimum fee based upon the number of calls and then charge us another retainer to bring the account back to $5,000.00, Now this guy was my IT guy for 15 years we were one of his first customers. So I sent him a big NO THANKS and hired a new IT guy, actually have fewer problems now.
 
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bradleyelectric said:
Where are you located? Where I am you do need to pass a 4 hour test. It is just that test and you can use the truck you just bought for $400. Liability insurance can be had for about $450. that is also required to get an active license. I believe there are some out there that don't carry it year round.

What would you consider to be a few levels up in the industry? Sometimes my best money comes from service changes.
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If you would jump into your brother state WV you need to pass an electrical exam and a contractors exam. The contractors exam is open book and in chronological order. I got a 90 something. Extremely easy, however I seen guys getting up walking out and complaining on how hard it was.

The American dream is not meant to be hard, You just need to put forth an effort.
 
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bradleyelectric said:
Where are you located? Where I am you do need to pass a 4 hour test. It is just that test and you can use the truck you just bought for $400. Liability insurance can be had for about $450. that is also required to get an active license. I believe there are some out there that don't carry it year round.

What would you consider to be a few levels up in the industry? Sometimes my best money comes from service changes.
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NJ...technical test for a license, which is required...however, $600 pays for a prep course that helps all but the most dense pass the test...

insurance and few other items and you are at $3k or less...

a few steps up? $100,000+ electrical jobs that require more than 2 people...

service changes are profitable, if priced right...they also are not guaranteed...especially if the economy is slow and you are at $3k+, but moonlighters or slugs are <$1500...it's a 1 man job...

heck, even custom homes is a losing market. a slug and a helper can do a 10,000 sq ft house by themselves and screw up the pricing...

need to find niches or grow to the point that you are competing with other 'companies', instead of slugs, trunk slammers, and electricians (as opposed to electrical contractors)
 
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