job cost

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nizak

Senior Member
I'm dealing with a HO who thinks that I am juicing him on a job. Here's what I got. 70' 1"PVC from panel in finished garage (30' thru intrerior on the ceiling, 40' on exterior of house) to a hot tub disconnect (tub vendor provided) located on an upper deck 12' off the ground. 50A 2 pole circuit (4 wires 3#8 thhn 1 #10 thhn) 1 Qo250 CB. 10' of 1" PVC and 3' 3/4" flex from Disco to tub,. Dico switch is comprised of (2) 2pole GFCI breakers a 30A and a 20A, they are wired accordingly to the tub. I gave him a price of $775.00, Material , labor, and permit fee. Does this price seem unrealistic? BTW, for what it's worth workmanship is good quality, I bent offsets in the PVC where it was required and all work is neatly done. Replies welcome. Thanks.
 

haskindm

Senior Member
Location
Maryland
The customer has no idea what your costs are or what a reasonable charge would be. They just don't like paying out money to hook something up. Most customers do not take installation costs into account when purchasing something like this and then get upset when the installation costs "bust the budget". The most common thing is for the customer to buy a $30 ceiling fan, then the electrician is the "bad guy" when he tells them it will cost $300 to install! If you feel that you must, give the customer a breakdown of what the charge is for materials (including your markup), labor costs, permit and inspection fees, etc. There is probably nothing that you can do to make this customer happy at this point. They have decided that you are "juicing" them and no amount of facts or explanation will change that feeling.
Sorry. Welcome to the wonderful world of contracting.
 

LawnGuyLandSparky

Senior Member
A brick driveway costs the same whether you park a Jaguar or a Honda on it. That hot tub is temporary. The electrical work will last (roughly) forever.
 

Sparky555

Senior Member
Your price seems like a looser to me. This might work out better for you if you contract in advance instead of presenting the shocking invoice at the end.

Dave
 
nizak said:
I'm dealing with a HO who thinks that I am juicing him on a job. Here's what I got. 70' 1"PVC from panel in finished garage (30' thru intrerior on the ceiling, 40' on exterior of house) to a hot tub disconnect (tub vendor provided) located on an upper deck 12' off the ground. 50A 2 pole circuit (4 wires 3#8 thhn 1 #10 thhn) 1 Qo250 CB. 10' of 1" PVC and 3' 3/4" flex from Disco to tub,. Dico switch is comprised of (2) 2pole GFCI breakers a 30A and a 20A, they are wired accordingly to the tub. I gave him a price of $775.00, Material , labor, and permit fee. Does this price seem unrealistic? BTW, for what it's worth workmanship is good quality, I bent offsets in the PVC where it was required and all work is neatly done. Replies welcome. Thanks.

Of course it isn't, but if the HO bought the hot tub for a bargain price of $4000, he may be wondering why the electrical and water hookups costing him 30% of the purchase price. He may have made a mistake and over extended his finances and now trying to scapegoat somebody:rolleyes:
 

tmbrk

Senior Member
Location
Illinois
I've also run into situations where the HO said, "but the spa salesman said it would only be a couple hundred bucks for the electrical hook up."

Some salesmen can be real scumbags and will tell people anything to make the sale.

haskindm said:
The most common thing is for the customer to buy a $30 ceiling fan, then the electrician is the "bad guy" when he tells them it will cost $300 to install!

Americans are addicted to cheap products from China and third world countries. They expect the same cheap prices from American service workers.
 

ultramegabob

Senior Member
Location
Indiana
Absolutely do not come down on your price for a hot tub circuit, your price is on the low end as it is. I have no sympathy for people that are buying a luxoury item and want to be cheap skates on the electric, it costs what it costs, and if they dont want to pay your price tell them to call someone else, let someone else give work away for peanuts...
 
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ultramegabob

Senior Member
Location
Indiana
tmbrk said:
I've also run into situations where the HO said, "but the spa salesman said it would only be a couple hundred bucks for the electrical hook up."


tell the customer to call the salesman and refer thier electrician then...
 

nizak

Senior Member
I see where most of you's think my price was low. Not sure where you's are located but where I am unfortunatetly the labor rates range from $45/hr to $80/hr with the upper end guys being some of the biggest union contractors in the area. We cannot command the $100+/hr rates like alot of the country does. It is what it is,the only way to get rates up is to have everyone work together, and we have too many trunk slammers who will work for wages only.Thanks all for the replies.
 
I'm in Utah where it seems sometimes electricians may be doing more community service than competitive bidding... but I would also say you're a little low... about 55% too low. I just finished a job that ended with the homeowner complaining about bill. I was upfront on pricing, but he also felt like he was getting hosed. His electrician friend added to this, and couldn't understand why I used 12 gauge wire and such nice recessed lights... we have to compete against these idiots. Homeowner got an electrical contractor to go over project with him, did apples to apples comparison, and was $150 more than my invoice. Good Luck.
 

macmikeman

Senior Member
nizak said:
I see where most of you's think my price was low. Not sure where you's are located but where I am unfortunatetly the labor rates range from $45/hr to $80/hr with the upper end guys being some of the biggest union contractors in the area. We cannot command the $100+/hr rates like alot of the country does. It is what it is,the only way to get rates up is to have everyone work together, and we have too many trunk slammers who will work for wages only.Thanks all for the replies.

I used to think just like you do. I hope one day you will learn to leap off the cliff of consideration of what the other guys around your area charge. What you will find if you do is that the ground keeps dropping further away as you fall into profit land.
 

Sparky555

Senior Member
macmikeman said:
I used to think just like you do. I hope one day you will learn to leap off the cliff of consideration of what the other guys around your area charge. What you will find if you do is that the ground keeps dropping further away as you fall into profit land.

LOL Perfect post. Let go of your fears. It's a lot easier to run a business with $$ in the bank.

Dave
 

Rewire

Senior Member
Sparky555 said:
LOL Perfect post. Let go of your fears. It's a lot easier to run a business with $$ in the bank.

Dave
Its the trap that all to many fall into they start a business without enough capital.When the phone doesn't ring for a week it gets easy to justify dropping your price to get a job.Everyone says raise your price but it is hard to keep in mind the goal is to drain the swamp when your up to your ears in alligators.
 

Sparky555

Senior Member
Rewire said:
Its the trap that all to many fall into they start a business without enough capital.When the phone doesn't ring for a week it gets easy to justify dropping your price to get a job.Everyone says raise your price but it is hard to keep in mind the goal is to drain the swamp when your up to your ears in alligators.

I worked in that swamp 15 years longer than anyone should. I discovered the secret to success is to figure profitable pricing in the comfort of your office. Then when you're in front of the client you speak with confidence. So when your gut is saying "I can't get more than $1500 for this job", you present a contract for $3,000 and they often sign it. You get a few hundred dollars in profit & the swamp slowly drains.

Dave
 

jrannis

Senior Member
I would have done that job for no less than twice what you are quoting.
I have found out that when someone says "wow" about the price, I agree with them. Usually thats all they want to hear and sign on the dotted line.

I worked for a GE that used to say that to subs all of the time just out of habit. It was the best money maker he ever came up with. It would always put 10 to 30% of their money into his pocket. I was kind of like a bluff to see peoples reaction.
 

Sparky555

Senior Member
The OP is a little hard for me to follow for my pricing, but I'm coming up more in the $2500+ neighborhood. As Brian said, your price wouldn't cover my labor. It looks like a day+. Do a breakeven calculation. It'll be an eye-opener.

Dave
 
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