Geek Squad Services More Valuable Than Electrical Services?

[emahler]

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.

but the easier it is to try...the harder it is to attain...

does that make sense?

 

[macmikeman]

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

Jeff, what they are really thinking is probably, "lets call that one guy who hardly charges any money for fixing our stuff"

 

[emahler]

nah...they use me because I'm good

 

[bradleyelectric]

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)

I make more money doing commercial jobs between 3K-14K than I do on 100K jobs. Figure 100K jobs at 10%. I can make 50% on the right small commercial jobs. I did a rush job at a national toy store in the last 30 days. Labor cost me $1200. materials were under $5K. Price was close to $29K. Granted that was an unusual bid, but I certainly make more working directly for business owners in that price range. Second to that is commercial projects for GCs in that price range. I can price them at more than 10%. Are you talking about new construction over 100k? How do you price them? I don't give away the small residential service work. I can make pretty good money at it. I do not try to be the cheapest guy doing it.

 

[emahler]

I make more money doing commercial jobs between 3K-14K than I do on 100K jobs. Figure 100K jobs at 10%. I can make 50% on the right small commercial jobs. I did a rush job at a national toy store in the last 30 days. Labor cost me $1200. materials were under $5K. Price was close to $29K. Granted that was an unusual bid, but I certainly make more working directly for business owners in that price range. Second to that is commercial projects for GCs in that price range. I can price them at more than 10%. Are you talking about new construction over 100k? How do you price them? I don't give away the small residential service work. I can make pretty good money at it. I do not try to be the cheapest guy doing it.

bradley...you can always make money on the 'right' small jobs...and there is definitely money in the resi service (otherwise companies like the dwyer group, clockwork, nexstar, etc wouldn't exist)

my point is that that end of the market is full of slugs...you can differentiate yourself from them, but you always have to deal with them.

when you get into larger projects, there are less one man shows screwing up the program. in addition, i've learned that while your margins on a $100k job might be 10%..for a company set up for those projects, the margin could be 20%+....

i'm not saying that money can't be made in either place, just that if you do small service work, you will always have to deal with new guys, moonlighters, etc.

 

[brian john]

I could be wrong on this, but I bet those geeks make less per hour than your electricians. I know in te UPS field the hourly rate is way over my rate, yet their techs make less and have fewer bennies then my men.

 

[ex-seabee]

too many people working w/ no license & for cash

too many people working w/ no license & for cash

Yeah there is a company, (a franchising operation) called Mr.Electric, and in some cases they do work through Home Depot. Each business must apply and be checked out, and qualified before allowed to work with Depot. (I worked for one of these franchises for a while.) The real problem with, "the dollar amounts /rates thing", is the fact that too many "hack and trash" wannabes out there are cutting everyones throats, trying to make a buck , quality is a low priority. Things like being code compliant and being trained to do a quality install, do not always matter! The lack of quality and a focus on low price, not quality means everyone fights for scraps.
Geek squad has positioned themselves as a quality operation. Their published prices ensure that they do not spend time with "fishing expeditions" and competing with bottom feeders! Laugh if you want, they have a plan and it seems to be working!

 

[satnad]

Wait longer + Charge More = More Profit

Wait longer + Charge More = More Profit

Do you? How do you do it?

Don't go and look at such small jobs for free - it is better to wait and give a free estimate on something bigger, worthwhile. On small jobs, I tell the customer "we just go and do it (if you want) when we have a chance - we charge $100 for the first hour and $65.00 thereafter. Many times when quite busy I just say min. service call or small job is $200.00 good for 2.5 hours or less.

 

[srblx]

Hal: if you are keeping up to par on local trends, the day we need geeks on our crews is already here. Look at all the smart homes cropping up and then look at how many electricians actually know how to do the bundled packages.
In my little area of Ohio we have over 150 electricians and maybe 15 of us can wire a smart home.
Steve

 

[bradleyelectric]

Don't go and look at such small jobs for free - it is better to wait and give a free estimate on something bigger, worthwhile. On small jobs, I tell the customer "we just go and do it (if you want) when we have a chance - we charge $100 for the first hour and $65.00 thereafter. Many times when quite busy I just say min. service call or small job is $200.00 good for 2.5 hours or less.

I charge more than that If I'm going to tell them it is hourly $105/hr. I'd rather give them a price to do it if it is something I think I can get more for. I'm not going to go look at a $200 job to estimate it if I don't have to. Can't think of any reason why i'd have to.

 

[brantmacga]

I make more money doing commercial jobs between 3K-14K than I do on 100K jobs. Figure 100K jobs at 10%. I can make 50% on the right small commercial jobs. I did a rush job at a national toy store in the last 30 days. Labor cost me $1200. materials were under $5K. Price was close to $29K. Granted that was an unusual bid, but I certainly make more working directly for business owners in that price range. Second to that is commercial projects for GCs in that price range. I can price them at more than 10%. Are you talking about new construction over 100k? How do you price them? I don't give away the small residential service work. I can make pretty good money at it. I do not try to be the cheapest guy doing it.

i've never done a 100k job, but just did a small 20k job that went right along w/ what you're saying.