How to raise rates in your area??

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The way you become successful at raising your rates is by being able to portray the idea to the customer that you are charging them what you are supposed to be charging them in such a way that they believe you and do not mind paying you for your services. It's all in the salemanship. I was talking with a friend yesterday that was telling me what he gave for a price on a little job. I think he told me he gave a price of $650. for a job that is going to take him all day and he will have material expenses. It includes unhooking a 100A service disconnect and replacing it with a new 100A service disconnect, including pulling the meter, unbugging the existing disconnect in the dervice trough and rebugging the new, cleaning up and repainting the service trough and reinstalling the meter. This is for a government agency. I told him he is killing himself with his pricing. I told him I'd have given them a price of $2200. I've worked for the same agency before and know they will pay. The fact is they probably through his price out. He charges less for a man and a bucket truck than I do for a man and a van. I asked him if I need to start buying bucket trucks due to the fact they must be so much cheaper. When money starts getting tight he starts talking about getting a partner. I told him if he would charge enough he wouldn't need a partner. He just doesn't get it and never will.
 
This is a problem everywhere you go. I charge 75 per man hr on fix it jobs. A flat rate on all others. New construction gets a sqft price plus extras, permit fee etc... Its a damn shame that you can get lowballed,, but it happens. If a contractror can beat my price and do the same quality work, then good for him. But I cant count the times I have had people say "I liked your sales pitch ,your a little higher then do da electric but were going with you". Sometimes ..no all the time sell your company as gold. If they want quality or bottom of the barrel electrical work its up to them.
I named my company Right Way Electric, its in my ads, my Bis cards, pretty much everything ... Right Way Electric "The First Time"
Always sell yourself, and your company for what you think its worth, NOT some lowballin crap companys number. They wont be in buisness long.

TIM:cool:
 
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