It's tough out there

[electricmanscott]

The low ballers are having a banner year. Seems every job I price is going right into the recycle bin. I'm always too high, even when I price low.

I don't see any choice but to go even lower.

In talking with gc's and other contractors in the Boston area, $65 per hour is pretty much the norm and even somewhat high.

I haven't been anywhere near that figure in years and I don't want to be. On the other hand $65 an hour is better than zero.

To the "employees" that work steady, end your day after eight hours, and collect a paycheck every week, I salute you. :grin:

 

[peter d]

The low ballers are having a banner year. Seems every job I price is going right into the recycle bin.

Recycle bin? How "green" of you. I always throw recyclables into the garbage.

 

[peter d]

To the "employees" that work steady, end your day after eight hours, and collect a paycheck every week, I salute you. :grin:

I'm an employee and I am grateful to be one at the moment. I'm only making about 32 hours a week lately but it's better than nothing.

 

[peter d]

Not to revive the whole sidework debate again, but in Massachusetts you are dealing with a special set of circumstances because you are competing against guys who can legally work (get permits) with a journeymans license. I imagine there are more than a few electricians who have been laid off from bigger companies in Mass. who are now "sidejobbing" but doing it legally. And of course because they don't have the expenses and overhead of a "normal" EC business they can be cheaper in times like these.

 

[billdozier]

is it the lowballers taking the jobs or the large companies putting bids on everything. it is definitely tight right now. thankfully I am an employ and have been getting 40hrs a week. however I know several good employees in my area who arent working.So be thankful if you have work and good luck to you guys who dont

 

[tonyou812]

I think larger companies are bidding on everything under the sun to keep their troops working. Im sticking to my guns. Right now im living of small stuff and Im fine with that. It suits my company of One.

 

[satcom]

The low ballers are having a banner year. Seems every job I price is going right into the recycle bin. I'm always too high, even when I price low.

I don't see any choice but to go even lower.

In talking with gc's and other contractors in the Boston area, $65 per hour is pretty much the norm and even somewhat high.

I haven't been anywhere near that figure in years and I don't want to be. On the other hand $65 an hour is better than zero.

To the "employees" that work steady, end your day after eight hours, and collect a paycheck every week, I salute you. :grin:

If you take jobs for $65 an hour and your break even cost is $79 an hour, how long can you pay someone to work for them is the real question. I have to say every contractor that went low to get work is no longer contracting, you can't go lower then it costrs you, for any period of time.

 

[480sparky]

If you take jobs for $65 an hour and your break even cost is $79 an hour, how long can you pay someone to work for them is the real question. I have to say every contractor that went low to get work is no longer contracting, you can't go lower then it costrs you, for any period of time.

Given that, then the competition is pricing themselves out of business..... just hang on and all the others will be flippin' burgers at Mac & Don's. Then things should pick up.

 

[tkb]

Not to revive the whole sidework debate again, but in Massachusetts you are dealing with a special set of circumstances because you are competing against guys who can legally work (get permits) with a journeymans license. I imagine there are more than a few electricians who have been laid off from bigger companies in Mass. who are now "sidejobbing" but doing it legally. And of course because they don't have the expenses and overhead of a "normal" EC business they can be cheaper in times like these.

Only legal if they have insurance and are paying taxes on the income.

 

[peter d]

Only legal if they have insurance and are paying taxes on the income.

Yes, I was making the assumption that they would be doing everything above board, but I know that is not the case many times.

 

[iaov]

I think larger companies are bidding on everything under the sun to keep their troops working. Im sticking to my guns. Right now im living of small stuff and Im fine with that. It suits my company of One.

I'm living on small stuff too. When you get outside the city limmits here,anything goes.No license, no permits, and unless its new, no inspections. Out there I'm competing with guys who are willing to work for 20 bucks an hour!! I hope our new law will change that but it doesn't go into effect until 2013.

 

[bradleyelectric]

Got 1 for ya. Called a GC to get feed back on a Dollar Tree. It's a white box. She told me prices were all over. The low guy was $3,000. next guy was $10,000. This thing has an energy management system. Granted it is owner supplied, but it's labor and there is still the rest of the store to wire. The job hasn't been awarded yet so I'm not going to elaborate farther. It bid 2 weeks ago though, so I'm wandering what their cash position is.

 

[CopperTone]

We used to get 4-6 jobs out of 10 we priced. Lately it has been less than 1 in 10 we land. even when i bid tight it seems someone else is up to 30% less? I can't believe prices out there. how long can you work at that price?

Each day seems to be getting worse around where i am. I went to a prebid walk through last week and there was about 13 EC's there. Fairly small electrical job (maybe 40-50k). I walked out, returned the prints and passed on bidding. It may sound dumb to do that, but I knew I wouldn't win the bid and I was so sick of wasting my time putting bids together and spending so much time for nothing.
I see projects all around where I am that are dead in the water - half built, steel up, and locked gates all around - financing dried up.

I think i may have to lower my price drastically to stay alive - i do not want to and i think it's suicide but no work is suicide too.

 

[bradleyelectric]

I think i may have to lower my price drastically to stay alive - i do not want to and i think it's suicide but no work is suicide too.

Where is the money? If the money is not in what you are doing where is it. Somebody is making money doing electric work in your area. It may not be doing what you are doing. Find out who is making money or what would be profitable and go after that work.

Who moved your cheese?

 

[Pierre C Belarge]

The last two weeks, I noticed less calls. The ECs are not paying their bills as fast/often as in the past. Some are getting pretty far back and service is being suspended...they just go to another company though, which is not good for us. Tough times are soon to be here with us, we were safe for a while, but I see the downswing coming fast.

 

[quogueelectric]

Yes, I was making the assumption that they would be doing everything above board, but I know that is not the case many times.

Cash trunkslamers those are the worst kind. Like a clumsy ninja in the night in and out of there.

 

[satcom]

I think i may have to lower my price drastically to stay alive - i do not want to and i think it's suicide but no work is suicide too.

The worst move possible is to lower prices, in my area the guys that are left and still working, have raised their prices, to make up for the slow down in work, back in the 70's when we had a slow down, not as bad as this one, I took a job cleaning restrooms, and scrubbing floors, to feed my family, some of the other guys would not lower themself to such work, they never made it in business either, when the economy picked up years later, most of them ended up with dead end electrical jobs, being willing to change in tough times will make you stronger, wiser, and better later on.

 

[Pierre C Belarge]

The worst move possible is to lower prices, in my area the guys that are left and still working, have raised their prices, to make up for the slow down in work, back in the 70's when we had a slow down, not as bad as this one, I took a job cleaning restrooms, and scrubbing floors, to feed my family, some of the other guys would not lower themself to such work, they never made it in business either, when the economy picked up years later, most of them ended up with dead end electrical jobs, being willing to change in tough times will make you stronger, wiser, and better later on.

I do not know if it is the worst move, but it is not a sound move.

What does not kill you will make you stronger


As we all go through this turbulent time, we will see the strong survive.

 

[Pierre C Belarge]

The tough part of this all is, there is no where else to turn, this situation is so wide spread.

Although I did see a show on 60 minutes where a realtor changed his business to cleaning out forclosed homes, and he is now hiring...Let the brains take over and fear take a back seat.

 

[ike5547]

The worst move possible is to lower prices, in my area the guys that are left and still working, have raised their prices, to make up for the slow down in work, back in the 70's when we had a slow down, not as bad as this one, I took a job cleaning restrooms, and scrubbing floors, to feed my family, some of the other guys would not lower themself to such work, they never made it in business either, when the economy picked up years later, most of them ended up with dead end electrical jobs, being willing to change in tough times will make you stronger, wiser, and better later on.

There ya go, Coppertone.

Raise your prices and start scrubbing toilets.:roll: