Pricing

[Doctor Electric]

I've recently got a job that involves a 3-phase 200-amp service and a 350 amp single phase service I know how to change them both I know the equipment that I need I can go get registered and pull my permit however as far as pricing this job goes I don't know if we're allowed to talk about this on here but is there any pointers that you can give me to help maximize the profit on this job without ripping the customer off as it is a very good customer of mine obviously I don't do a normal labor rate I always go higher I mark up the material that I'm getting however it is a commercial job and I'm normally used to doing residential is there a certain price point or tip or trick that you go off to where , you know what I'm making x amount of dollars more off of this what I don't want is to give the job away and lower the bar for the rest of us electricians. Beyond the service lies about 1000 or better feet of pipe work for multiple machines and 240/ 208 applications lighting the whole 9. 40 by 80 2 story Warehouse. Any thoughts would be appreciated guys thank you

 

[Little Bill]

I can only suggest you get a labor unit pricing book, hopefully with material prices. Do a take-off and figure from there with your OH, profit, etc.

 

[sameguy]

What location are you in?
Look up the labor rate of the I.B.E.W. in your area for a jw (it's posted on line) make sure you have the health and welfare, retirement, added in; that gets you to the cost of manpower add in your numbers and profit.

 

[oldsparky52]

Forget what "others" do/charge. You know what it cost you to do the job and you know what profit you desire. Go with that number.

You said it's a good customer. If you came up with a price that satisfied you and your profit requirements, and found out some "book" suggest a higher price, would you be being fair to your "good customer"? Think about it.

I was never known for being the cheapest guy, yet I was mostly always busy. If I can do it cheaper than "the book", then great for me and my customer (so long as I'm making what I want).

I feel most people that want to go by "the book" are unsure of what it takes to do the job. If that's the case then by all means use "the book" as a guideline. If you think you are leaving too much money on the table, keep adding 2-3% to your bid until you stop getting the job, then back it down a notch.

I also used market strength when pricing. If the market it hot, add 10 to 15% at the end of the workup.

My best project was making (having a gross profit) $27,000 in 3 days. If I had gone by "the book", I believe that number might have been a WHOLE lot less. I admit, while I'm kind of proud of that, I also feel I may have been heavy handed with that customer. Now this was not just electrical work and I was the only person that completely understood their system and the expansion requirements but the point is, trust yourself for YOUR business. If you don't know, use the book.

 

[jimmyglen]

you could estimate the job COST PLUS if you know your true costs to operate etc
costs across the board plus a percentage mark up
the trick is knowing your real costs and factoring them in


or just bid the job according to what you want to charge (or want to make)


start with your time looking at the job / estimating the job
then add the labor your figure to do the job - make sure you include some time to go back and time to meet the inspector etc
add in you parts with TAX and MARKUP
add in permit costs and any tool or equipment rental

 

[jap]

I've recently got a job that involves a 3-phase 200-amp service and a 350 amp single phase service I know how to change them both I know the equipment that I need I can go get registered and pull my permit however as far as pricing this job goes I don't know if we're allowed to talk about this on here but is there any pointers that you can give me to help maximize the profit on this job without ripping the customer off as it is a very good customer of mine obviously I don't do a normal labor rate I always go higher I mark up the material that I'm getting however it is a commercial job and I'm normally used to doing residential is there a certain price point or tip or trick that you go off to where , you know what I'm making x amount of dollars more off of this what I don't want is to give the job away and lower the bar for the rest of us electricians. Beyond the service lies about 1000 or better feet of pipe work for multiple machines and 240/ 208 applications lighting the whole 9. 40 by 80 2 story Warehouse. Any thoughts would be appreciated guys thank you

My advice would be to hope that your "very good customer" doesn't read what you've revealed on this site.


JAP>

 

[Doctor Electric]

Thanks guys. All thoughts are helpful i think i know the job i don't need a book besides my code book if they don't like the price I'll drop it down some. I think being fair has gotten me all the work and referrals ive ever had and obviously the lasting work she is a designer plus she wouldn't know who doctor electric is lol thank you

 

[Fulthrotl]

but is there any pointers that you can give me to help maximize the profit on this job
without ripping the customer off as it is a very good customer of mine

i would try charging more money. it has worked for me in the past....

you mention two different types of service, but are leaving out some information....

-what you are doing to them.
-what voltage they are.

i would assume 208 for the 3 phase, and 240 for the single phase.
are you upgrading the services, combining them, or what?
what were they before, and what will the be when you are done?