How much should I be making?

[celtic]

They charge a lot for work, so they're easy to beat on bids

What we lose on sales, we make up on volume?

 

[Greg Swartz]

I know, I know...

I know, I know...

What we lose on sales, we make up on volume?

I know what you're saying. I'm not trying to take that route.

I have found a good medium price range that is working for my bidding.

We're higher than some, and lower than others...

I don't apologize for my price, but I don't ask for the other competitor's prices either. I have a price, and I let the customer know that I will not drop it, just to get the bid.

And when I compete against Mr. Sparky... I'm the lower bid... every time.

I have a profit margin too, and I make it, just like them. But mine is lower... probably because I don't have $4k a month in advertising (Only $500 - $750 a month)

 

[Fulthrotl]

So, start off with about $60k, and set it all aside, because it is going to disappear.

And then expect the phone to start ringing...

Still waiting?

Thought so... you'll need the "time" factor to set in...

Yes, some Mr. Sparky guys make $100k a year.
It is all residential work: 100%

Panel change outs, hot tubs, ceiling fans, plugs, switches, and whatever else you can think of...
The guys get paid piece work. The faster you work, the more per hour you make. But do not get ANY call backs. You do not get paid for those, and you'll be reprimanded or fired (depending on the severity.)

They charge a lot for work, so they're easy to beat on bids

your story reminds me of a similar rape, pillage, and burn company.....

a number of years ago, (mid '90's) i ran across a local contractor here
who offered $50 an hour for service truck work.... and there was an
"orientation" given at a local hotel conference room near disneyland....
did i mention the outfit was micky mouse?

so, this orientation explains how i would work under their license, doing
residential service work, as an independant contractor. markup on
material was 500%, and shop rate was $85 an hour, and the average
service call was $455.

now, to get paid, i'd have to turn in a "packet" which contains the
work order, a cachiers check from the customer.. ( i would have to
go to the bank the check is drawn on and flip it for a cashiers check
made payable to the shop, less check fees.) and receipts for all
material. original receipts.

within 2 days, they issue a check to me, for my share of the labor
fee (60%) plus materials reimbursement and 50% of the profit on
the materials. they claim it'll be $50 an hour net. yeah, right wilbur.

here's the hook..... the check to me is issued as w-2 money, so it's 100%
taxable, they deduct the gross paid to me as w-2 income, and then
THEY deduct the material reciepts that *I* paid for, while i pay tax
on my gross income, without being able to deduct material, 'cause
it isn't 1099 money, it's W-2 money i'm being paid with, and i gave THEM
my original receipts.

they had two guys on hourly wage to handle warranties, and whatnot,
and one crusty old geezer to be "superintendant".

and 250 "associates". most of whom spoke english as a distant second
language.

they were doing about $450k a month, with a 2 man shop, is what
it amounts to.

and of that $450k a month, they were able to keep about $175k,
with enough deductions that little or none of it was taxable.
everything that goes out to the "associates" is a full writeoff, and
they have all those receipts....

their expenses, besides ads in the yellow pages? 2 electricians,
hourly, and a $600 a month industrial unit, and an answering service.
no material expense, no bidding, no accounts receivable, just a
cash cow.

there is no shortage of flim flam men, it appears.


randy

 

[ramsy]

If I were you I would look for another job. It's not good to just work for one company unless it's a really prosperous company with very varied experience available. Get out in the world an see what else is going on.

Moving out in the construction world, with no connections or leverage, does not complete the teaching of young Jedi, but may bring them crawling back once tired of getting kicked around with little marketable focus or specialized skill.

Employment is temporary, not our fathers world, and the pain of departing a secure family business would be felt hard by everyone. Stay with the family, but divide your time between side jobs (weekends) hustled on your own, and when they need you now, higher rates miraculously get thrown at you.

 

[celtic]

your story reminds me of a similar rape, pillage, and burn company.....



....there is no shortage of flim flam men, it appears.

WOW
I think I ran into that same act in the late 80's/early 90's here in NJ.

I needed a job, answered the ad, and meet the guy at a diner :-?
Needless to say - even at my young age then - I did not like their "business model"...I walked away from those guys.

 

[Sparky555]

Ok... Mr. Sparky... yes, it is a franchise.
You'll need some money for the franchise license.
Then you'll need a lot of money for the nice van. It has to be new, and you've got to get a vehicle wrap too...
Then you need to have the van stocked... I mean loaded!
Then the biggie: Advertise! Every phone book ($5k a month easily), every internet website, EVERYWHERE.

So, start off with about $60k, and set it all aside, because it is going to disappear.

Unbelievable that ANYONE would use a business model like Mr Sparky when you can live at Mom's house, have your wife work for health benefits, get work by word of mouth & charge less than half what those thieves charge.

 

[cschmid]

Unbelievable that ANYONE would use a business model like Mr Sparky when you can live at Mom's house, have your wife work for health benefits, get work by word of mouth & charge less than half what those thieves charge.

Wow that is not a business..it is a job (just over broke) and your profit is dependant on someone elses exspenses..it is a lot easier to see cash flow when someone else is paying the mortgage and someone else is buying the insurance..

 

[g@friendly]

Mr sparky is a complete system... There is alot of training for the owners, managers, Csr, Dispatch, Tech.. etc.. they have sucessful ad already for you plus tv radio and alot more. It is not just a nice truck with a wrap and 5k a month in ads.
They are a Res. service company

 

[brian john]

I do not do residential but to me the name Mr Sparky and their cheesy looking trucks look like CRAP and reminds me of Mr Shady.

But what do I know.

 

[aline]

I do not do residential but to me the name Mr Sparky and their cheesy looking trucks look like CRAP and reminds me of Mr Shady.

But what do I know.

In 2001 and 2003, Mister Sparky appeared in Inc. magazine's list of the 500 fastest-growing privately held U.S. companies.

In June 2006, Clockwork Home Services acquired Atlanta-based Mister Sparky brand which, at that time, had 2006 projected revenue of $10 million and was the largest residential electrical service and repair company in the eastern United States and one of the biggest in North America.

Mister Sparky was projected to have a run rate of approximately $50 Million by the end of 2007.

Apparently someone likes the name Mister Sparky and their cheesy looking trucks that look like crap.

 

[Sparky555]

I actually envy the Mr Sparky franchise.

The problems are:
I don't want to spend that much money.
I don't want to be a full-time suit.

So I'll just limp along & do the best I can while copying some of the Mr Sparky business practices.

 

[brian john]

In 2001 and 2003, Mister Sparky appeared in Inc. magazine's list of the 500 fastest-growing privately held U.S. companies.

In June 2006, Clockwork Home Services acquired Atlanta-based Mister Sparky brand which, at that time, had 2006 projected revenue of $10 million and was the largest residential electrical service and repair company in the eastern United States and one of the biggest in North America.

Mister Sparky was projected to have a run rate of approximately $50 Million by the end of 2007.

Apparently someone likes the name Mister Sparky and their cheesy looking trucks that look like crap.

Apparently someone likes the name Mister Sparky and their cheesy looking trucks that look like crap.

Yeah and Eastern Airlines was once number one where are they now, UM Sears, GM and Metrocall entrepreneur of the year in the 80 now out of business. It ain't what you make it is what you keep. being bigger is not always the answer.

Hey what do I know I am only a lowly electrician, with little or no experience in business or the electrical end.

 

[iwire]

Yeah and Eastern Airlines was once number one where are they now, UM Sears, GM and Metrocall entrepreneur of the year in the 80 now out of business. It ain't what you make it is what you keep. being bigger is not always the answer.

I am sure the principles in those companies kept truck loads of money.

 

[brian john]

I am sure the principles in those companies kept truck loads of money.

Bob on this one (and most of your post) you are right on Target.

 

[aline]

Yeah and Eastern Airlines was once number one where are they now, UM Sears, GM and Metrocall entrepreneur of the year in the 80 now out of business. It ain't what you make it is what you keep. being bigger is not always the answer.

Hey what do I know I am only a lowly electrician, with little or no experience in business or the electrical end.

You're right. I'd sure hate to be in Patrick Kennedy's shoes.

I remember when Donald Trump was declared bankrupt in 1990. Poor Guy.

I remember sitting in a bar listening to some guys talk about how they would hate to be in his shoes. Poor guy was bankrupt and owed all that money.

Yeah these guys were much better off.

You're right. It is how much you keep. I'm sure these guys have it figured out to keep plenty no matter what happens to their companies.

 

[emahler]

it never ceases to amaze me how we, as a trade, are so quick to bash, and drag down, anyone who does something different and better....easier to drag others down to our level, than rise up to theirs....

 

[celtic]

Yeah and Eastern Airlines was once number one where are they now, UM Sears, GM and Metrocall entrepreneur of the year in the 80 now out of business. It ain't what you make it is what you keep. being bigger is not always the answer.

The funny thing about being #1 - there is only direction to head after that.

Mr. Sparky will probably have a long run on the way to #1....and along the way - money will be made.

 

[brian john]

it never ceases to amaze me how we, as a trade, are so quick to bash, and drag down, anyone who does something different and better....easier to drag others down to our level, than rise up to theirs....

Look I think his trucks look cheesy and I never liked the Sparky thing, Like a plumber called leaky yeah I want him working on my house. Not my thing, I am not envious, I just do not think it is professional sounding or looking.

As for rising up to their level PLEASE, trying not to be big headed in this BUT PLEASE do not take me there.

As for the Wall Street men walking away with millions as others are stuck with the bill, I'd rather be the one getting stuck (not that we should be stuck)than be lumped in with those guys.

 

[Sparky555]

I never liked the Sparky thing, Like a plumber called leaky yeah I want him working on my house.

It's very common for the electrician on the jobsite to be called Sparky.

 

[emahler]

Look I think his trucks look cheesy and I never liked the Sparky thing, Like a plumber called leaky yeah I want him working on my house. Not my thing, I am not envious, I just do not think it is professional sounding or looking.

As for rising up to their level PLEASE, trying not to be big headed in this BUT PLEASE do not take me there.

As for the Wall Street men walking away with millions as others are stuck with the bill, I'd rather be the one getting stuck (not that we should be stuck)than be lumped in with those guys.

brian,

you are playing a different game, on a different field, with different rules...you are officially exempt