Pricing....Against competitors....

[JacksonburgFarmer]

OK, how do you guys check your rates against other locall EC's? We have to raise our rates, but dont want to loose good customers in doing so. However, we cannot continue at our present rates.....So....What do you guys do? Just curious....

 

[electricguy]

I had to figure out my Break even costs and then start using Flat rate for service work. I found out the going rate meant going down the drain. I thought other competitors set the rate guess they didnt know there break even.

 

[ceknight]

OK, how do you guys check your rates against other locall EC's?

I don't. Except occasionally, when I get too busy and hire one of them to take care of something I don't have time to do.

We have to raise our rates, but dont want to loose good customers in doing so.....

If you have good customers now, you'll still have them when you raise your rates. People who know your work and trust you will not begrudge you an honest living. They want you around when something goes wrong, you're the person they'll leave a house key under the mat for.

I really can't say how your prices will affect your competing for new customers, other than to say that having higher prices will discourage many of the folks you really don't want to work for anyway.

 

[Sparky555]

These days everyone is having to raise their rates to cover the increase in expenses. I try to increase rates early on when other businesses are thinking about it. I like to get a jump on the competition with these increases. The slow & reluctant ones are the ones going out of business. I typically lose a very small percentage of my customer base with every increase & it's almost always the PITA people you'd wish to be rid of anyway. It never turns into a loser on the bottom line.

Dave

 

[ramsy]

The PITA people that pay their bills or provide substantial projects are important if your just staring out. If operation legality, and project scope is crystal clear, why not make some adaptations? Mother nature absorbs the worlds eccentricities by adapting special responses just for them.

Service-call minimums (1-hr or 2-hr minimum), and credit-card pre-payment may increase revenue for some without increasing rates. If your client base is small, and still being nurtured, rate increases go to new customers, unless your not interested in new clients.

 

[mdshunk]

I have no idea what the competition charges, nor do I even care. I charge what I need to. Every time rates are raised, any fears I might have had about losing business turned out to be unfounded. Some people say that the going rate is equivalent to "the going out of business rate".

 

[bikeindy]

I have no idea what the competition charges, nor do I even care. I charge what I need to. Every time rates are raised, any fears I might have had about losing business turned out to be unfounded. Some people say that the going rate is equivalent to "the going out of business rate".

Marc I have found even the opposite to be true from what guys might think. Every time I raise my rates I have an increase in business. The truth is my business is growing very steady and at a great rate and good customers know your prices will go up they have been to the store once or twice themselves in the last year.

As for my competition, I also could care less for what they charge. I landed a job this evening before I gave the customer the price because it had to do with me and how I opperate not my price. when I gave her the price she just said, "Will a check be OK?" sure I take checks.

 

[electricguy]

This summer has been slow . I have done a few quotes... and in the last couple weeks they have come though. Collected 2000.00 in deposits today will keep me busy for 2 weeks anyhow. I am glad i didnt try and discount my pricing to get these jobs. these are priced out in the 150/hr range one is a sub panel install for new laundry equipment for one place and clean up some stuff that the AHJ flagged in a rental home.

Paying that yellow pages Ad hurts at times when its slow but i look at the YP Ad as an investment for furture work.

 

[electricguy]

This summer has been slow . I have done a few quotes... and in the last couple weeks they have come though. Collected 2000.00 in deposits today will keep me busy for 2 weeks anyhow. I am glad i didnt try and discount my pricing to get these jobs. these are priced out in flatrate one is a sub panel install for new laundry equipment for one place and clean up some stuff that the AHJ flagged in a rental home.

Paying that yellow pages Ad hurts at times when its slow but i look at the YP Ad as an investment for furture work.

wanted to edit my post but cant find the edit icon

 

[r_merc]

You have to know what your break even is and then go from there. I don't care what the competition charges. I'm in business for me/my family. I've read some where that you can raise rates 25% and loose 10% of customers. So those 10% will be your least profitable and weren't worth keeping business. There are exceptions to this so you can discount for those you really want to keep and book the difference as charity. Don't prejudge your customers either.

 

[iwire]

wanted to edit my post but cant find the edit icon

There is a time limit for editing posts.

 

[Brady Electric]

Pricing against competitors

Pricing against competitors

ElectricGuy
After you post and scroll down on the bottom right is says submit reply on the left and preview post on the right side and you just click on what you want to do
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