How would you price this?

Status
Not open for further replies.
J

JoeNorm

Senior Member
Location
WA
I have a simple task to do and am curious how others with more experience in set pricing would approach it.

Transformer exists at the street. My task is to install a 200 amp meter/main combo enclosure next to transformer with at least a couple pipe stubs for a future building and RV pad and septic controls.

There will be hand digging, and a couple bags worth of concrete mixed and poured. Total materials cost will be in the $400-$500 range(my cost)

I imagine putting the enclosure together with strut, wire whip for utility, etc plus the install shouldn't take more than about 6 hours(give or take).

How would you price this? I am in a fairly high cost area so people are not typically scared by large numbers. I could go the T&M route but I'd like to work toward set pricing for straightforward stuff like this.

Thanks
 
Let me get this straight. You have a project that will require you to supply $500 worth of material and 6 hours of labor and you can't figure out how much to charge?
 
petersonra said:
Let me get this straight. You have a project that will require you to supply $500 worth of material and 6 hours of labor and you can't figure out how much to charge?
Click to expand...
Yes, I know how I would charge. But I am new at this and wondering how others approach small jobs. If you just simply add up materials, add a markup and add up hours, that's helpful information. Others might do it differently. This is a forum for learning things from others.
 
JoeNorm said:
Yes, I know how I would charge. But I am new at this and wondering how others approach small jobs. If you just simply add up materials, add a markup and add up hours, that's helpful information. Others might do it differently. This is a forum for learning things from others.
Click to expand...
You have time involved and fees for permit?
Time for meeting inspector and/or POCO?
 
I suggest making a worksheet, basically a line-item proposal, for yourself. The more detailed, the better.

For each piece of the job, parts, mark-up, time, profit, etc. Presume worst-case problems for every task.

It's easy to underestimate how long most jobs will take, and that's without time to catch your breath.
 
I don’t do the type of business you do, so I can’t tell you a “price”.

I can tell you about 40 years ago I had a business… failed miserably because I didn‘t price, manage, nor execute properly.
I charged mostly T&M because I thought it was the safe way to go. My hourly rate was what I thought was fair.
I didn’t have insurance, life insurance, nor retirement. When I got a big payday I generally needed most of the funds to pay creditors for materials, truck payments, gas, etc… then there was the household expenses.
When it all went kaput I went back to “working for the man”.
even went back to college and got my EE degree on “the man”.
The business classes helped me see where I screwed up.

I realized later my pricing was less than I would make at a job with benefits.
Now.. why did I type all this…

Simple.. Explore your market area. Don’t price yourself into poverty.
your in a “fairly high cost area so people are not typically scared by large numbers”.
don’t be the lowest priced.
On the other hand If your the highest you better be the best and be ready to explain why your costs are justified.

Set your prices to make a good living now along with saving and planning something after your through.


I’ve read enough posts over the years to know the guys here that are successful in their own business can tell you exactly what their costs are and why their costs are what they are.
 
Hv&Lv said:
I don’t do the type of business you do, so I can’t tell you a “price”.

I can tell you about 40 years ago I had a business… failed miserably because I didn‘t price, manage, nor execute properly.
I charged mostly T&M because I thought it was the safe way to go. My hourly rate was what I thought was fair.
I didn’t have insurance, life insurance, nor retirement. When I got a big payday I generally needed most of the funds to pay creditors for materials, truck payments, gas, etc… then there was the household expenses.
When it all went kaput I went back to “working for the man”.
even went back to college and got my EE degree on “the man”.
The business classes helped me see where I screwed up.

I realized later my pricing was less than I would make at a job with benefits.
Now.. why did I type all this…

Simple.. Explore your market area. Don’t price yourself into poverty.
your in a “fairly high cost area so people are not typically scared by large numbers”.
don’t be the lowest priced.
On the other hand If your the highest you better be the best and be ready to explain why your costs are justified.

Set your prices to make a good living now along with saving and planning something after your through.


I’ve read enough posts over the years to know the guys here that are successful in their own business can tell you exactly what their costs are and why their costs are what they are.
Click to expand...
thanks for the thoughtful reply
 
LarryFine said:
I suggest making a worksheet, basically a line-item proposal, for yourself. The more detailed, the better.

For each piece of the job, parts, mark-up, time, profit, etc. Presume worst-case problems for every task.

It's easy to underestimate how long most jobs will take, and that's without time to catch your breath.
Click to expand...
this is a good idea, thanks
 
AC\DC said:
Maybe I read your post wrong are you running pipes to a set location for Rv, septic and house
Click to expand...
In the near future, but for this example I was trying to simplify it by just including the enclosure and a few PVC stubs that can be found at a later date.
 
JoeNorm said:
I'm still wondering if anyone here would throw a number at this simple example.
Click to expand...
Simple? :unsure:
How much will the permit cost, and time to apply for?
How long will it take to make plans to submit with it?
What will be your total material cost, including delivery?
How long will the work take from day 1 to final inspection?
How many people will be working on the job most days?
How many trips will be required for each inspection?
 
growler said:
Good advice.
Click to expand...
Thank you.

Years ago, I priced a job running an SER cable for a generator feeder from outside to an electrical room in the center of the basement. I was told a few other electricians had said it couldn't be done without major drywall patching.

After looking over the downstairs, I found what I believed would be a viable pathway that would require going over the den/playroom ceiling, down an interior wall, into a narrow, unfinished space, and into the electrical room.

What the others had overlooked was that a wall sconce on the interior wall lined up with a pair of ceiling speakers, and careful measuring told me that the wall sconce was directly in front of the narrow space in the unfinished area.

So, I gave him a price that I felt would be fair to both of us, he asked why it was so high, and I explained about the likely obstacles I might encounter, and I had to base the price on how long it might end up taking if I have trouble.

He asked if I would lower the price if it went faster than expected. I asked him if he would be okay with me raising the price if it ended up taking longer than I thought. He looked at me for two seconds, smiled, and shook my hand.
 
Fortunately, everything went smoothly. The speakers were in the same joist space, the sconce box came out easily, I bored through the cinderblock wall behind it, and it worked like a charm. When I was done, you couldn't even tell.

The best part was that I didn't have to drill through a top plate, because the ceiling was not lined up with the rest of the basement ceilings. There was space that let me pass the cable from the ceiling space directly into the wall space.

The customer was both happy and impressed. I was, too. :giggle:
 
JoeNorm said:
I have a simple task to do and am curious how others with more experience in set pricing would approach it.

Transformer exists at the street. My task is to install a 200 amp meter/main combo enclosure next to transformer with at least a couple pipe stubs for a future building and RV pad and septic controls.

There will be hand digging, and a couple bags worth of concrete mixed and poured. Total materials cost will be in the $400-$500 range(my cost)

I imagine putting the enclosure together with strut, wire whip for utility, etc plus the install shouldn't take more than about 6 hours(give or take).

How would you price this? I am in a fairly high cost area so people are not typically scared by large numbers. I could go the T&M route but I'd like to work toward set pricing for straightforward stuff like this.

Thanks
Click to expand...
I would say along the lines of what AC\DC said. I might even go a little higher, 2.5k-3k.

And it's not going to take you 6 hours. It's going to be more like this:

1. POCO application
2. Talk to POCO guy, probably meet at site.
3. Talk to the client about something that has to be a little different than he was expecting.
4. Get back in touch with POCO guy telling him okay
5. Gather or order materials.
6. Go out twice for materials you forgot or where you had to do something a little different than expected.
7. Oh better get the permit
8. Schedule inspection
9. Fail inspection because you forgot the available fault current label.
10. Make some calls or go online and order the label.
11. Go install label
12. Reschedule inspection. You pass!
13. Make several calls to POCO inquiring when they will hook it up.
14. Finally get paid!
15. Analyze if you charged enough
 
Double the amount of hours you're expecting, then double the rate you charge. Then add materials at cost

Example:
6 hrs x 2 = 12 hours
$115 x 2 = $230/hr

$230 x 12 = $2,760
Materials = $ 500
Total -------> $3,260

That's because of what @electrofelon mentioned
 
Status
Not open for further replies.
Top