Selling lights as electrician

[Strathead]

I'd guess he typically just has a standard percentage on markup of items sold. Problem is every job has a different amount of items sold so you can't actually count on any fixed number for your overhead.

But at same time if you are not supplying certain items that does reduce some of your overhead. You don't have to spend the time selecting, ordering, no shipping or handling costs. Hopefully you have already factored installation labor or certain other specialty equipment (maybe a lift) or supplies that might be necessary in whether you are supplying the fixtures or not.

Except there is usually handling cost. Time spent researching the requirements for mounting. Screws and hardware that isn't in the estimate that you have to get. Conversations with the provider. On commercial institutional jobs which I am more referring to, we usually end up offloading, storing, moving around.

I have a reputation as a pretty good estimator in my region. Some of it is feel though. Kwired is right that the overhead and profit are different for each job. But the bottom line is the bottom line. I have won many jobs where I put profit and overhead to cover owner purchased fixtures. We made money. That is most of what matters. A good estimate is ultimately three things answered yes:

Did you want the job?
Did it make money?
Were you close enough to your competitors that you didn't leave a lot on the table?

 

[Strathead]

How do you determine what % to add to your bid for overhead?

Or, do you do it a different way?

Sarcastically, it is voodoo. But seriously, it has to do with how much repetition, familiarity, availability of men, tightness of schedule and a myriad of other things. Have you ever pondered how we can start running in the direction a baseball is going to land the moment it leaves the bat? All of our experiences help us with everything we do.

 

[LarryFine]

Except there is usually handling cost. Time spent researching the requirements for mounting. Screws and hardware that isn't in the estimate that you have to get. Conversations with the provider. On commercial institutional jobs which I am more referring to, we usually end up offloading, storing, moving around.

To me, all of that should be figured in the labor and miscellaneous material costs.

For example, an hour plus $5-$10 parts per light that takes 20 minutes to install.

 

[Greg1707]

I install lights for everyone is it wrong to sell lights like I open a lighting company and sell customers my lights and install them

I have been following this thread and feel I am missing something. From my experience home owners purchase light fixtures from HD or a lighting store with a showroom and sales people. The electrician is then hired to install the fixtures. When I remodeled my house we purchased our plumbing fixtures from Fergusons. The showroom is beautiful and the sales people are very helpful. Are people suggesting that I should have bought the fixtures from my plumber? I cannot imagine that!

 

[AC\DC]

Yes, and why not a qualified plumber that knows what he is selling. How is furgeson any better the plumber that is trained in his field and deal with his material every day. Same with lighting take proper classes and get a decent feel for lighting layout and sell good quality lights.
I just installed a HD light owner bought thing hummed with a Lutron dimmer. Told home owner that Lutron is the best dimmer out there. It’s this crappy led dimmer drive that is causing it. Called Lutron and they have not tested this fixture with there dimmer, though on HD it say it works works wonders with the dimmer owner bought.
HD and every box store is trash for DYI told that to homeowner and told her come to my store when it’s up and running to get a light that will function, perfectly with your dimmer.

 

[LarryFine]

Usually it's the light maker whom you should ask for a list of compatible dimmers.

 

[kwired]

Usually it's the light maker whom you should ask for a list of compatible dimmers.

I agree. I've seen many item descriptions on big box store sites that are not accurate. If private label item, forget trying to get accurate information. If name brand item go to manufacturer site to get better information.

 

[kwired]

Sarcastically, it is voodoo. But seriously, it has to do with how much repetition, familiarity, availability of men, tightness of schedule and a myriad of other things. Have you ever pondered how we can start running in the direction a baseball is going to land the moment it leaves the bat? All of our experiences help us with everything we do.

If you seen or been there long enough, you will realize that first baseman has some chance of making a mistake or maybe the ball will be just out of his reach and you run anyway, just in case. The higher level of competition you are involved in the more you realize he will likely make the play though.

 

[oldsparky52]

If you seen or been there long enough, you will realize that first baseman has some chance of making a mistake or maybe the ball will be just out of his reach and you run anyway, just in case. The higher level of competition you are involved in the more you realize he will likely make the play though.

But you still run.

 

[Strathead]

To me, all of that should be figured in the labor and miscellaneous material costs.

For example, an hour plus $5-$10 parts per light that takes 20 minutes to install.

Again, whatever process you use, the goal is the same, get the job, make money.

 

[oldsparky52]

Again, whatever process you use, the goal is the same, get the job, make money.

We would sometimes actually do a job at cost for customer relations. The boss would go along with that, what he did not like is when you did a job that you thought you were making money and then we find out it didn't.

 

[AC\DC]

Lutron is the largest and most use dimmer out there. When the owner buys a light and dimmer and light does not work, I blame the cheap light.
The dimmer cost more than the lady light fixture so the cheaper light fixture gets replaced.