Second Guessing

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Jerseydaze

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Simple little job was told I "way higher then there usually electrician" snake in customer installed exhaust fan switch leg to existing box add switch over switch, snake in Gfci receptacle new box, snake in existing gfi box in other bathroom.

I figured 3 hrs worst case with mats I'm at $380 This is a customer who potentially will give me more work.I'm trying to decide if I should give a little back .
 
Jerseydaze said:
Simple little job was told I "way higher then there usually electrician" .
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I take this to mean the electrician that they would normally use. My question at times like this: If this guy is giving them such good deals why would they be looking for a different electrician? It also shows they have no loyalty based on the fact they are getting a good deal.

Get as much money as you can the first time and if they call back then get some more.
 
My experience is that, since they have a "usual electrician", they are getting a price from you because (a) they want the lowest price or (b) they are dissatisfied with his service/quality.
If it's "b" they should be willing to pay a bit more for better quality/service.
If it's "a", the next job will go to whoever is willing to underbid you.

If you are confident with your price being fair, stand by it.
 
hardworkingstiff said:
And if you beat all the others with a low price, you will get the job. Your price is your price. If you sell on price, you'll make wages at best.
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This is why Time & Material, with the not to exceed price of the original amount is good. You always make money on T&M right ? And you plan on making money on the original price. So do it T&M with the 1/3 down and weekly billing. May want to mark this option up since your tracking the job more than you usually would.
 
I would say that I am usually better then their usual electrician.

Seriously, I think the T&M offer with a limit is not a bad choice. If you need the work do what you have to do but don't lose money.
 
Steve Beranek said:
This is why Time & Material, with the not to exceed price of the original amount is good. You always make money on T&M right ? And you plan on making money on the original price. So do it T&M with the 1/3 down and weekly billing. May want to mark this option up since your tracking the job more than you usually would.
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They may have more work, so he can loose more money.
 
Rewire said:
Every time.
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Ok, I feel sorry for you, and recommend that you change your service rates. If you do a service call, you charge Time and Material, and you loose money ? This is not a very good way to do business, you won't last very long exspecially if service work is what you do.

But honestly your really loosing money on T&M jobs? WOW !!!!
 
Steve Beranek said:
Ok, I feel sorry for you, and recommend that you change your service rates. If you do a service call, you charge Time and Material, and you loose money ? This is not a very good way to do business, you won't last very long exspecially if service work is what you do.

But honestly your really loosing money on T&M jobs? WOW !!!!
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Rates are not the problem, he could raise his rates to the sky and still loose money, You will always loose money on service work using T&M
 
satcom said:
Rates are not the problem, he could raise his rates to the sky and still loose money, You will always loose money on service work using T&M
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Please explain how your loosing money,

If you charge 125/hr, and your employees cost 65/hr with insurance, gas, phone, etc. And you charge 15% markup on material ordered. I have never lost money on T&M except where something was ordered and had to be returned with a restocking fee, our employee error. I am Baffled at the ability to loose money on Service work. I'm still in shock there is more than one that are in this situation.
 
Steve Beranek said:
Please explain how your loosing money,

If you charge 125/hr, and your employees cost 65/hr with insurance, gas, phone, etc. And you charge 15% markup on material ordered. I have never lost money on T&M except where something was ordered and had to be returned with a restocking fee, our employee error. I am Baffled at the ability to loose money on Service work. I'm still in shock there is more than one that are in this situation.
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Not just you, but every trade had learned you can't make money with T&M and on service work it is a sure way to disaster, the only way to avoid losses and customer problems is to price service work, with flat rates.

Try to remember contract T&M is different then service work, and different again from non contract T&M.
 
Steve Beranek said:
Time and Material, and you loose money ?
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I think they mean with time & materials with a "not to exceed" clause thrown in there.

I don't really see an up-side to working time and materials if there is a cap on total price. If I quote a job price I am offer a gaurantee that I can do the job for that price ( taking a small risk ). If I add a not to exceed clause then I'm still taking a risk but not getting paid for it so I don't see an advantage to this sort of agreement.

Time and materials is great but that's an agreement to get paid for all time spent on anything pertaining to getting the job done to include getting materials and permits. ;)
 
satcom said:
Not just you, but every trade had learned you can't make money with T&M and on service work it is a sure way to disaster, the only way to avoid losses and customer problems is to price service work, with flat rates.

Try to remember contract T&M is different then service work, and different again from non contract T&M.
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AH, maybe you miss understood, or I wasn't clear enough, T&M is billed at Flat rate, Your defined Hourly Rate that you charge, so that you do not loose money. But with the cap on there it is possible to loose money, since you are taking the risk of not comming in on budget.
 
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