Pulling numbers out of a hat

[jaylectricity]

There are certain things I do that I have a good amount of experience in. For those things I find a marketable price to sell by the piece. Recessed lights are a good example. Guys in my area get between $100-$200 each depending on whether or not we're supplying the materials and what kind of ceiling we're dealing with. I charge $100 each to install recessed lights supplied by the customer regardless of what brand/style I'm dealing with. When purchasing and installing your basic 5" or 6" cans I charge $150.

When it comes to doing things I'm not completely familiar with I charge by the hour. I usually try to charge $75 an hour nowadays, but I only charge $50 to the guys that I've known since I got my license (Late 2002). I might not make market price on the task at hand, but learning new stuff is worth the money I don't make.

Is this an acceptable way to operate as a single proprietor electrician?

It's late, so I won't get a chance to read responses until tomorrow. I apologize in advance if I'm not available to answer follow-up questions soon enough.

 

[electricmanscott]

Holy crap, I just threw up in my mouth.

$75.00 per hour is insane. I don't know how you can do that as a "legal" business. As for $50.00 an hour, I am speechless.

With all the price increases, liability insurance, health insurance (up $300.00 PER MONTH), gas, etc, I am about to break the $100.00 an hour mark for the first time. I'll sub you for $50.00 and still charge $100+. :wink:

I actually use a bit of a sliding scale for lack of a better term. I have a map with areas colored in and price by area. Mostly based on distance but there is a little bit of adjustment based on the apparent "wealth" of the town and other factors.

Last time I did a rough calculation of what I should be billing I think it was about $110.00 an hour or so. I am working towards that rate.

As for the recessed light, my general rule is $165.00 for a 5" remodel can.

$100.00 for a 5" new work can.

Remember, everytime one of your costs increases you get a pay cut. It is up to you to do something about it.

 

[ashtrak]

$500 an hr.

$500 an hr.

I charge $500 an hr. I don't get much work, but I get to keep my truck real clean. Also people have a lot of respect for me cause I have principles and won't budge on my price.

 

[emahler]

I charge $500 an hr. I don't get much work, but I get to keep my truck real clean. Also people have a lot of respect for me cause I have principles and won't budge on my price.

you should take some of that spare time and take a class on being a stand up comic...a funny stand up comic...


what's the alternative? drop your pants so you busy, have a messy truck, but still broke?

 

[tonyou812]

I charge $500 an hr. I don't get much work, but I get to keep my truck real clean. Also people have a lot of respect for me cause I have principles and won't budge on my price.

WOW..........Holy crap...........I guess Im a bargain at 90 per hour. wow I think Im gonna go have a good cry and see if I can get my old job back.

 

[emahler]

WOW..........Holy crap...........I guess Im a bargain at 90 per hour. wow I think Im gonna go have a good cry and see if I can get my old job back.

if you actually got $90/hr for 40 hrs a week ($3600) you would be OK...but I'll bet you get $90/hr for about 25 hrs a week ($2250)....so, when your bills come, you gulp....just a guess though...

 

[emahler]

I charge $500 an hr. I don't get much work, but I get to keep my truck real clean. Also people have a lot of respect for me cause I have principles and won't budge on my price.

go ahead and laugh, there are contractors out there who get over $300/billable hour every day of the week...why not figure out how they are doing it and emulate them, instead of making a weak attempt make fun of them with bad humor?

 

[emahler]

and something else to bear in mind....if i could get $500/billable hour, I would only have to work 1 hr for every 5.5 hours you would have to work at $90/hr....which sounds better?

 

[ashtrak]

Principles

Principles

No disrespect meant emahler....I understand everyones individual overhead is a driving factor in priceing.If I charged 2K for a standard 200Amp service and $165 for a remodel I'd need a lemonade stand to make it to make up for my lack of work. There would be ten guys behind me with proposals that would look a lot better than mine. Very competitive in this area.
Hope you have a good day.

 

[Pierre C Belarge]

The math is relatively simple, yet most guys have a hard time wrapping their minds around the concept. It took me 3 years in business before another contractor who took me under his wing was finally able to convince me when I was contracting to "charge more and work less".


When your percentage of profit is higher than your competitor, you need to work less to make the same.

By doing so, you put yourself in front of customers who do not quibble about pricing, they are only interested in good, timely service.

 

[ashtrak]

Principles

Principles

No disrespect meant emahler....I understand everyones individual overhead is a driving factor in priceing.If I charged 2K for a standard 200Amp service and $165 for a remodel I'd need a lemonade stand to make it to make up for my lack of work. There would be ten guys behind me with proposals that would look a lot better than mine. Very competitive in this area.
Hope you have a good day.

 

[emahler]

No disrespect meant emahler....I understand everyones individual overhead is a driving factor in priceing.If I charged 2K for a standard 200Amp service and $165 for a remodel I'd need a lemonade stand to make it to make up for my lack of work. There would be ten guys behind me with proposals that would look a lot better than mine. Very competitive in this area.
Hope you have a good day.

no disrespect taken (trust me, I have thick skin)...but i'd bet you are wrong...i'd be shocked if there aren't at least 2 companies in your immediate area that don't belong to, or follow the systems of, nexstar/esi/mr. electric/etc....and I can assure you, they are priced where you say you can't be...

 

[SmithBuilt]

no disrespect taken (trust me, I have thick skin)...but i'd bet you are wrong...i'd be shocked if there aren't at least 2 companies in your immediate area that don't belong to, or follow the systems of, nexstar/esi/mr. electric/etc....and I can assure you, they are priced where you say you can't be...

But they are not a one man show. And it takes thousands of $ before you get the first customer. Not everyone can start out like that.

Don't get me wrong I would love to charge that much. But when you bid work against other EC's you can't charge what you would like and still get the job. Bidding all the time and not getting jobs is just as bad as working your tail off just to break even.

Now if we could somehow regulate how many people become licensed just like the doctors do then we could get somewhere.

There's always someone who will do it cheaper at least in my area.

 

[emahler]

But they are not a one man show. And it takes thousands of $ before you get the first customer. Not everyone can start out like that.

Don't get me wrong I would love to charge that much. But when you bid work against other EC's you can't charge what you would like and still get the job. Bidding all the time and not getting jobs is just as bad as working your tail off just to break even.

Now if we could somehow regulate how many people become licensed just like the doctors do then we could get somewhere.

There's always someone who will do it cheaper at least in my area.

i disagree...as a matter of fact, you probably do a better job than one of the hired hands from these large companies...thereby, in the normal world, you would be worth more...i know that the contractor world is backwards, but we can dream...

in addition, go take classes on selling...if you are a 1 man operation, doing resi service work, and you only know how to sell on price, you are sunk...you are the contractor my "Human Nature" thread is referring too...get educated...pull yourself (and everyone you can) up to a higher level...

or, tell yourself it can't be done, and give everyone a million reasons why it can't be done...and you'll be right...

 

[SmithBuilt]

i disagree...as a matter of fact, you probably do a better job than one of the hired hands from these large companies...thereby, in the normal world, you would be worth more...i know that the contractor world is backwards, but we can dream...

Agreed.

in addition, go take classes on selling...if you are a 1 man operation, doing resi service work, and you only know how to sell on price, you are sunk...you are the contractor my "Human Nature" thread is referring too...get educated...pull yourself (and everyone you can) up to a higher level...

I have this problem with commercial work also. I do not solicit resi due to the competition. I see large companies that should be charging more in my area, resi and commercial. People in my area are tight and get more than one bid. I'm normally one of the highest and waste a lot of time bidding. I agree about the selling course it should be required before you get an EC license. But I still don't think we can pull enough people up to a higher level.

I don't think EC's around here have raised their rates up enough to make up for rising costs of materials and overhead.

 

[emahler]

Agreed.



I have this problem with commercial work also. I do not solicit resi due to the competition. I see large companies that should be charging more in my area, resi and commercial. People in my area are tight and get more than one bid. I'm normally one of the highest and waste a lot of time bidding. I agree about the selling course it should be required before you get an EC license. But I still don't think we can pull enough people up to a higher level.

I don't think EC's around here have raised their rates up enough to make up for rising costs of materials and overhead.

get away from competitive bid projects then...in all seriousness...go after resi service...never any prints, always apples to oranges...you have the opportunity to sell yourself and your work on more than pricing...

 

[growler]

get away from competitive bid projects, go after resi service...

emahler, I thought you got out of residential service worK.

Just checking.

 

[emahler]

emahler, I thought you got out of residential service worK.

Just checking.

i did...but we aren't in the competitive bid market either..

but I spent 10 yrs in the resi service market...it's a good market..we just got the point where we, as a company, needed to move on...

 

[romexking]

No disrespect meant emahler....I understand everyones individual overhead is a driving factor in priceing.If I charged 2K for a standard 200Amp service and $165 for a remodel I'd need a lemonade stand to make it to make up for my lack of work. There would be ten guys behind me with proposals that would look a lot better than mine. Very competitive in this area.
Hope you have a good day.

I would have to disagree. I don't know where in Maryland you are, but I charge well over $2k for a service and my hourly rate is just under $200. I get very few questions about my pricing.


PM me and we can talk on the phone about it.

 

[Rewire]

But they are not a one man show. And it takes thousands of $ before you get the first customer. Not everyone can start out like that.

Trying to start a business with no working capital is the first step to failure.

There's always someone who will do it cheaper at least in my area.

It doesn't have to be you.Ask yourself who is the highest EC in town? Why can't it be you?