Gut Check on Estimate

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ELAR

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I put together a design fee for a commercial space.
Three offices and a long hallway.

I estimated 4 receptacles, 1 switch, 2 fluorescent fixtures (2x4 layin grid ceiling) per each office.

3 receptacles, 1 switch, 3 fluorescent fixtures in hallway.

Using MC cable and 4" square steel boxes. All circuits served from an existing panel located adjacent to space. Owner pays permit fees.

My estimate:

$2855.95 Labor
$869.96 Material

So... Am I nuts or is this ballpark?

Thank you.
 
In my book you are. But maybe I don't need to work as much as you do. Can you complete the whole thing, rough and trim in three days flat? If so your number is ok. You are quoting about what I ask for in 2-1/2- 3 days.
 
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we always quote all of our prices at $.95-$.99 Kind of like the gas station. People don't see the $.99. Show them $9.99 and they see $9 not $10. Do 2000 jobs in a year, and that is an extra $2000. look at your local gas station $2.39 9/10. How many people say gas is $2.40? How many say gas is $2.39.

It's just a sales trick to mess with peoples minds. But it makes us some extra revenue.
 
I think your price sounds OK, but that's based on what I can see from here. Is parking convenient? Does the customer pay on time? Is the worksite clean & uncluttered? What type of layins?

The .95cents? OK for Walmart, not for me. I have a labor rate based on costs and profit, that's what we charge. The way we make money is to work smart and effieciently as we can (sometimes it even works) and avoid callbacks.
 
emahler said:
we always quote all of our prices at $.95-$.99 Kind of like the gas station. People don't see the $.99. Show them $9.99 and they see $9 not $10. Do 2000 jobs in a year, and that is an extra $2000. look at your local gas station $2.39 9/10. How many people say gas is $2.40? How many say gas is $2.39.

It's just a sales trick to mess with peoples minds. But it makes us some extra revenue.
Click to expand...


And what do you tell them your labor rate is $69.99 and 9/10

BTW everyone hates that system at the gas station
 
Price seems good to me.
WHY 3 hall receptacles? Not required or needed for a commercial lease space unless requested.
The tennants don't care about vacuums as they all have cleaning services.

BUT LEAVE OFF THE SMALL CHANGE!!!
I think people see small change as a sign of a gimmick or way to fraudulently take more money from them.
If you want to "LOOK" like your pencil is sharp & not rounding off, then quote
$3724

BUT LEAVE OFF THE SMALL CHANGE!!!

No one believes it on a bid proposal. Maybe on T&M ?
 
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I am still a new Contractor in the commercial area, but how are your prices with mc cable circuits? For example the estimate above. Could you guys brake down your prices per unit? Thanks
 
The 0.95 came out of the way I estimated the labor. I was using the Electrical Means book to get an idea of how much to charge for labor. I am not trying to mess with anybodies mind (I dont work that way).

Does anybody have any comment (good or bad) on this type of estimating?
 
first - we are mostly flat rate. so when we list prices before we get approval we use $24.99 instead of $25.00. It's definately a psycholgical thing. And I don't want to drop it down to $24.00.

2nd - we do very little t&m, and when we do, the price is the price. Our labor is in whole dollars.

c- we do mostly service work, so we charge sales tax. this completely screws up any OCD moment you may have of billing in exact dollars.

so, 4th- we cater to the general public, we use things that help to convince the general public to purchase from us.

and lastly, if it doesn't work for you charge $24.00 or $25.00, it's ok by me.
 
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