Have you raised your hourly rate

[brantmacga]

I dropped doing any residential because I have more than enough commercial and light industrial to do. Get calls all the time from people wanting residential done. The resi guys I’ve been sending them to, are too busy too. I’m booked until January 2024, and not taking any new customers.

I stopped taking new residential customers some time ago…. But will keep making time for existing. It’s good immediate cash flow.

 

[electrofelon]

I dropped doing any residential because I have more than enough commercial and light industrial to do. Get calls all the time from people wanting residential done. The resi guys I’ve been sending them to, are too busy too. I’m booked until January 2024, and not taking any new customers.

Yeah me too. Im turning down most resi. I reluctantly do some stuff for existing customers.

 

[Joethemechanic]

Paid $7,495.37 In real estate taxes yesterday. Last year it was $6,600. Still not sure what I get for it. RT 309 is getting repaved, but that is state and fed money. Companies and people think I'm going to work for 2005 rates. The hell with that, I'm not going to work to lose money. Let somebody else have that kind of work

 

[James L]

Companies and people think I'm going to work for 2005 rates. The hell with that, I'm not going to work to lose money. Let somebody else have that kind of work

I've told people that if all I'm gonna get is enough to go broke, I don't need to work. I can go broke at home

 

[Another C10]

I know some jobs will be lost just cause people wallets are tight and an extra 15$ bucks an hour adds up.

Unless your opportunities are slim, which I doubt .. don't feel bad about losing the abundance, I can't do all the work that comes my way so I pick and choose where my time goes, slowly I'd like to wean off the residential and focus more on businesses. The good thing about residential though is the environment is usually casual, not so hectic as a business and normally you get paid by the end of the day not to mention the material cost are easy to find or fund.

Business clients tend to drag on the payment anywhere from 30 to 90 days. Although the numbers are bigger and usually the client don't blink an eye on the bill.

 

[hillbilly1]

Unless your opportunities are slim, which I doubt .. don't feel bad about losing the abundance, I can't do all the work that comes my way so I pick and choose where my time goes, slowly I'd like to wean off the residential and focus more on businesses. The good thing about residential though is the environment is usually casual, not so hectic as a business and normally you get paid by the end of the day not to mention the material cost are easy to find or fund.

Business clients tend to drag on the payment anywhere from 30 to 90 days. Although the numbers are bigger and usually the client don't blink an eye on the bill.

My customers are unusual, most of them pay right when I invoice them. I’ve got one customer where the CFO chases me down the hall with a check right after I email her the bill! I have only one slow pay, so he gets charged $15 an hour more because I know he drags his feet. He goes 30-45 days.

 

[electrofelon]

Business clients tend to drag on the payment anywhere from 30 to 90 days. Although the numbers are bigger and usually the client don't blink an eye on the bill.

My customers are unusual, most of them pay right when I invoice them. I’ve got one customer where the CFO chases me down the hall with a check right after I email her the bill! I have only one slow pay, so he gets charged $15 an hour more because I know he drags his feet. He goes 30-45 days.

my main commercial client is slow to pay. Basically for years they have owed me $60,000. Part of that is my fault for not doing invoicing regularly, but they still drag their feet, the guy "forgets" or "didnt see" one of my invoices.....got fed up and told them in writing they have 5 Business days after receiving my invoice, at which point there will be a 5% late fee, and interest wil begin to be charged at 20%. I'm not a bank anymore.

 

[readydave8]

And most important, manage money during booms in such a way as to be able to ride out busts

(Someone that's been in business 5 years or less may not know what I'm talking about)

 

[ptonsparky]

Got a better secretary, she is ruthless.

Worth every penny!
Just before I closed shop I hired a woman to help close up after the previous secretary had moved on. She collect one that I thought I would never see. She got an extra $100 cash. Should have been more.

 

[Joethemechanic]

And most important, manage money during booms in such a way as to be able to ride out busts

(Someone that's been in business 5 years or less may not know what I'm talking about)

I learned that even as an employee. Prevailing Wage Rate changes by location, and sometimes doesn't apply at all. Personally that never got me in trouble, but it's tough to get the new hire to understand. The worst part is when one of them gets on a good PWR job for a couple months, and then goes to another job where the PWR is much lower, they get mad at you and quit

 

[ptonsparky]

Even as an employee, I always made more than the PWR and as employer I paid more. Could be because it was so dang low here.

 

[Joethemechanic]

Even as an employee, I always made more than the PWR and as employer I paid more. Could be because it was so dang low here.

There is a big difference in PWR. I can remember having a job going in Shoemakersville Pa. and one going in Newark Nj. The Nj job was paying 3 times the money. Both were PWR. Same job classification.

Then there is the problem when you need your good guys in Shoemakersville because the job takes some brains, and you can send your dumb dumbs to Newark because the job is so simple they can't screw it up. ( although believe me they will find a way to screw up)

Now your good highly skilled guys are PO because the dumb-dumbs are getting paid 3 times as much

 

[Sberry]

Worth every penny!
Just before I closed shop I hired a woman to help close up after the previous secretary had moved on. She collect one that I thought I would never see. She got an extra $100 cash. Should have been more.

I am going to put her on commission.

 

[sparky1118]

I was charging $100/hr, but after speaking with other electricians, they have increased their rates to $135. Therefore, I raised my rate to $125, which I find satisfactory. So far, no one has expressed any concerns about my rates. However, it should be noted that in my area, it is exceptionally challenging to find an available electrician due to the scarcity of professionals in this field.


Sent from my iPhone using Tapatalk Pro

 

[runninNMB]

I’m trying it now, since I was a little late to the game anyways. When one of the GC’s hints to my price being too reasonable, I find myself second guessing. When one gets complacent to the norm of 2-3% inflation it gets a little difficult to swallow upping your charges during a 7% inflationary period when that’s not what your used to.

I have been thinking the same thing, and similarly had GC's hint to me about "very reasonable" pricing.

I took over my father's company a few years ago, and I have kept with (updated/modified slightly) his framework for "contractor rate" and "direct-to-client" rate, as it seems logical and reasonable and the pricing is very similar-- GC's keep me busy much of the year, don't require as much hand-holding (generally ), and are keenly interested in time management, where as with homeowners .... not as much...

How do you all implement this raise in rate? Do you notify GC's you work for regularly that your rates are increasing, or just ... do it, and they find out when they get their invoice...?

 

[retirede]

If you bid their jobs as a fixed sum, it doesn’t matter. If it’s T&M they should be aware in advance.

 

[runninNMB]

If you bid their jobs as a fixed sum, it doesn’t matter. If it’s T&M they should be aware in advance.

That's what I was thinking - not much of my work is T+M for GC's but I had started drafting a quick 'formal' email to notify to GC's I work for regularly that for T+M the rates will be [$amount] effective [date].

 

[bullheimer]

I'm at $125/hr. I'm dead. But the price has nothing to do with it because people don't ask. 150 for the first hour. I'm north of Seattle. Plumbers are way way more than that and so are the auto mechanics rates. Dealerships at $185. With the amount of studying and inspections we have to do, on almost everything, we should make the most of any trade. Houses have doubled in the last two years up to $18/s.f. for custom homes, and I know I'm not alone around here with that. I mark material up whatever I want but usually 25% because I know some supply houses charge 100% more than box stores on certain things and they aren't shy about it either.

 

[James L]

How do you all implement this raise in rate? Do you notify GC's you work for regularly that your rates are increasing, or just ... do it, and they find out when they get their invoice...?

It depends on how much you're raising, and how you go about them getting your price.

I don't bid any work upfront anymore. The GCs I work for all want an opening price with which they can bid with no input from me. Then I send the whole bill after rough-in with 70% due.

I raised my opening price by $5.00 last year and didn't say anything. I'm going to make a "tier" adjustment that will mean higher prices for some work, so I need to let people know in advance

 

[imnotscared]

Do you think 5% for material is enough?! Every time I go to grab something from the box store I have sticker shock!

No! You're gonna take care of them and give them the best price and service. Nothing less than the best at no less than the going rate. Going rate... mark that brown baby diaper filler up. It's fair they have the money. Dr. PERRY, READ HIS ARTICLE ON MATERIAL. Change your game. God bless.