Have you raised your hourly rate

[kwired]

This I just anecdotal, so I am not advocation cutting your hours just playing devils advocate, also trying to figure out why I don’t have an employee yet lol

Just having one employee possibly the hardest. You previously were only taking on enough work for just yourself but now are on the border line of not having enough work to afford to keep that employee if you don't start gaining more work. You also sort of need someone with enough experience that you don't have to be with them for everything they do. The really green people work out better if you have other employees with experience to help train them so you can do some your "executive work"tasks during the day instead of having to make up for doing that executive work by actually working on projects after most have already went home for the night.

 

[letgomywago]

You need employees that know what they are doing, and they will want to be paid well enough to live as well or your new job is going to consist mostly of interviewing perspective employees, and possibly doing a heavier load of the actual work than you planned on top of it if you aren't getting the right people.

I can't see how any good jman in that area can be living off 30ish an hour if they're even paying that much if doing a 90ph rate for billing out. This is assuming they're following the idea of 1/3rds from way back when.

 

[hillbilly1]

I hope if I see that happening I’ll be man enough to stop that.

They had an older employee beat to death trying to stop the thugs, I believe it was in California.

 

[AC\DC]

They had an older employee beat to death trying to stop the thugs, I believe it was in California.

I live in military retirement town every one is packing lol usually not to worried

 

[letgomywago]

Because of this my supplier has been cheaper than HD and lowes since 2022. You walk in say I want so much of this and walk out. Or you can use their apps and an alert when your order is ready and they can't mess with your pricing you've negotiated.

 

[Fred B]

Because of this my supplier has been cheaper than HD and lowes since 2022. You walk in say I want so much of this and walk out. Or you can use their apps and an alert when your order is ready and they can't mess with your pricing you've negotiated.

And with big box app you don't get what you wanted because the pickers don't have a clue, they just grab item off shelf that has been put back in wrong spot. Now if you didn't go thru the entire order of 30 boxes and 15 connectors, etc., even if you did go thru them you've got to go back in and go to customer service and wait around for someone to finally come around to make the return and hopefully exchange, and now you've just added 30 to 45 min to your quick grab and go.
Had that happen and didn't check, got to the job site and half the boxes were MC gang boxes not NM gang boxes.

 

[ptonsparky]

If our main supply house goofed up a delivery or an order we picked up, they would bring the correction the same day if needed. Rarely went to BB Stores

 

[hillbilly1]

And with big box app you don't get what you wanted because the pickers don't have a clue, they just grab item off shelf that has been put back in wrong spot. Now if you didn't go thru the entire order of 30 boxes and 15 connectors, etc., even if you did go thru them you've got to go back in and go to customer service and wait around for someone to finally come around to make the return and hopefully exchange, and now you've just added 30 to 45 min to your quick grab and go.
Had that happen and didn't check, got to the job site and half the boxes were MC gang boxes not NM gang boxes.

Supply houses do the same thing, I have to check everything before I leave because the counter guy will enter the wrong part number, so they pull the wrong thing. One time I ordered 400’ of 3” emt, and the counter guy put in 400 pieces!

 

[letgomywago]

And with big box app you don't get what you wanted because the pickers don't have a clue, they just grab item off shelf that has been put back in wrong spot. Now if you didn't go thru the entire order of 30 boxes and 15 connectors, etc., even if you did go thru them you've got to go back in and go to customer service and wait around for someone to finally come around to make the return and hopefully exchange, and now you've just added 30 to 45 min to your quick grab and go.
Had that happen and didn't check, got to the job site and half the boxes were MC gang boxes not NM gang boxes.

North coast app never had an issue but all my orders were reviewed by my inside sales guy so when I'd order the night before a job he'd see it at 630 and call me If something seemed off

 

[kwired]

If our main supply house goofed up a delivery or an order we picked up, they would bring the correction the same day if needed. Rarely went to BB Stores

How far away were they?

I'm like 40 miles away, has to be an item with some significance (usually $$$wise) for them to make a trip for that one item. Luckily they have employees that live closer to me and most will bring items at least part of the way when they come home for the day.

 

[OK Sparky 93]

Talking about raising the hourly rate, the way I see it is how much do you need to pay yourself, if it is just you, cover your OH, Which in reality should cover your salary. Because, what happens if and when because you are the best around that you have more work than one guy can handle, and you hire a J-man and a helper.

If you need a $150,000 to cover you and overhead, then at a 50% GP you would have to produce $300,000 in Revenue. Less gross profit margin, means a higher revenue to cover the $150K. And that is without a profit to grow your business. Whatever $$ amount you want or need that to be.

8 hours a day @ $150, 5 days a week for 50 weeks is $300,000. 2000 hours. But most of what I see for an hourly figure for a service electrician is a 1000 hours.
I thought the idea would be to not have to work as many hours to provide the better living

Obviously understanding that material is going to make up some of that $300K, But unless it is some bigger job, (which may not classify as service), material for most is small in comparison. If you were being the employer type, and they were worth it then you would want to keep them when the work slows down. Now what charging double each ones pay rate to cover. What should the normal payrate be?

Now if it is only you, are you billing your jobs out at this 2 times this (rate + material)? How many jobs are you going to do in the year?

What is your average ticket? Will Two times the T&M be enough to produce $300K?

 

[OK Sparky 93]

Talking about raising the hourly rate, the way I see it is how much do you need to pay yourself, if it is just you, cover your OH, Which in reality should cover your salary. Because, what happens if and when because you are the best around that you have more work than one guy can handle, and you hire a J-man and a helper.

If you need a $150,000 to cover you and overhead, then at a 50% GP you would have to produce $300,000 in Revenue. Less gross profit margin, means a higher revenue to cover the $150K. And that is without a profit to grow your business. Whatever $$ amount you want or need that to be.

8 hours a day @ $150, 5 days a week for 50 weeks is $300,000. 2000 hours. But most of what I see for an hourly figure for a service electrician is a 1000 hours.
I thought the idea would be to not have to work as many hours to provide the better living

Obviously understanding that material is going to make up some of that $300K, But unless it is some bigger job, (which may not classify as service), material for most is small in comparison. If you were being the employer type, and they were worth it then you would want to keep them when the work slows down. Now what charging double each ones pay rate to cover. What should the normal payrate be?

Now if it is only you, are you billing your jobs out at this 2 times this (rate + material)? How many jobs are you going to do in the year?

What is your average ticket? Will Two times the T&M be enough to produce $300K?

Thinks my about this, through a restless night. I guess this would be a method that would only apply to jobs that you would bid.

But after more thought, as long as you (I) cover all cost and make a profit and not loss, that is what is important.

The hourly rate part will still boil down to how many hours you (I) will physically be in the field. I am not sure about the rest of you, but when I start adding up all of the cost and going cheap on truck, and not allowing for a contingency of ever needing a lawyer, I hit $50K really quick. If a $100k is sufficient for my personal gross, that puts me at $150.

And if I am not hitting that, probably due to brand recognition, I (you) would have to spend more money on marketing or raise prices.

The only way, I see to do that is flat rate.
For me then I guess it boils down to being a better salesman.