Small Electrical Contractor Needs Some Advice

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Hi Greg,

Another good network is organizations such as Habitat for Humanity. You have an opportunity to network with other trades and volunteers that open the door to new projects elsewhere. rbj
 
2) What are some good selling techniques?
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Up selling is really important. It will allow you to keep you base bid to a minimum. You should put together some kind of product brochure to be able to give to your customers. Let them take it home with them and choose the options that they would like to have. If you don't have the time to create one your self, you can find information on obtaining an options catalog here.

3) What type of bidding software do you use, if any?
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You can find a list of what Mike Holt calls "the major estimating software companies" here. I personally use TurboBid for estimating residential jobs. If you have any questions regarding my experiences with TurboBid you can either reply via this post or PM me. I will be glad to give you my opinion.

There are a lot of great guys on this site. They have already given you some really good advise. Continue to ask questions and learn as much as you can from these seasoned veterans.

Good luck!
 
iI am a new contractor in austin tx . i am planning to do service for commercial property managment and also industrial maintnance. any suggestions on how to get my foot in the door? and what should be included in service contract.
 
Wow!

Wow!

Wow guys, thanks for the awesome amount of advice.

Here's where I am...

1. Bought the e-myth book. Soon to receive it.

2. I have been signed up with servicemagic. Don't really like the fighting for bids. (One guy cut me so low, he did a basement for $900! Material & labor. My material alone was $600!)
I also use bidclerk.com. Cheaper and wider area of influence, and bigger jobs too. (commercial and residential) Plus I've gotten more from them in 2 months than servicemagic which charges per lead!

3. Looking into the networking group in Colorado Springs. There's a group that meets at a good time. No electricians in the group, and it looks like a good match... we will see...

4. Regarding estimating, I use quickbooks, and I have been building a list of materials. Time is still basically up to me. I use durand and associates labor rates book.

5. Logo. I agree with Mac. I went and got a professional logo designed, and went haywire with the logo company. Then I got a professional business card designed. Cost a few dollars, but I think it's worth it. Go to the website to see the logo.

6. Get on the web. I did. My page is still under construction, but please take a look at it. I accept any criticisms or suggestions. It's quite basic.
www.SwartzElectric.biz

7. In the last week, I expanded my marketing. I am on Google adwords (not free, but not expensive either), Yahoo business (free), I'm now on craigslist (free), I'm on a couple other websites too. Look to get into the phone book this next go around.

8. Selling techniques... I'm learning to sell to emotion. Someone mentioned that earlier. It's hard for me. I'm a black and white person.

9. I'm finishing my degree in Electrical Engineering (while starting a business, with a wife, and 4 kids, and...) so I hope that can help the business grow too... not sure how to leverage that though.

10. Regarding habitat for humanity, I'll check that out. I already do missions work. That has not helped out at all. Just takes time and money. It's nice to give to others, but I have to expect NOTHING in return...

11. Trying to get in with other contractors. Got one that I'm their preferred contractor, but the work is thin from them... lots of referrals though. Trying to get in with another... here's hoping.

Thank You everyone. I look forward to more advice!
Greg :cool:
 
and another thing...

and another thing...

Someone mentioned leaving cards in HD / Lowes...

I did some work for a guy that subcontracts for Lowes. He's a 1099 employee of an electrical contractor that does ceiling fan installs for Lowes (sounds kinda shady to me...)

Anyway, I'm going to get in touch with HD and see if I can align myself with them on electrical installs. They don't do that here. However, they do everything else... My thought is there is enough people buying electrical items from HD, they gotta need (lovely english there) an EC!

I figure I could handle the load from the 6 stores here in town...

Any suggestions on how to approach this? Heck, if it happens, maybe you guys could join in and be EC to HD in other towns...
it could happen...

Personally, I want commercial work. But I have nothing against having a service department that does nothing but mundane installs for good money.

Greg
 
bidclerk

bidclerk

Tim,

I like BidClerk. It's $40 a month, or less if you do longer periods...

In town, it has nearly every commercial job out there, and the City and State put their jobs out there too...

Lots of homeowners post there too...

I can check any city I want... still the same rate

It lets you check for free, but doesn't give phone numbers / names and such.

Check it out for free here http://bidclerk.com

Greg
 
Greg Swartz said:
Anyway, I'm going to get in touch with HD and see if I can align myself with them on electrical installs. They don't do that here. However, they do everything else... My thought is there is enough people buying electrical items from HD, they gotta need (lovely english there) an EC!

I figure I could handle the load from the 6 stores here in town...

Any suggestions on how to approach this? Heck, if it happens, maybe you guys could join in and be EC to HD in other towns...
it could happen...

Greg
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Be careful on who align with and who you do work for in your advertisement's.
There was a segment on a local news station here in Cincinnati, Ohio about shoddy workmanship from HD subs for roofing & carpet installs. Didn't mention anything about electric work, but just the mention of a name could lead to lost business.
Just my .02 worth
 
Bob Kraemer said:
Be careful on who align with and who you do work for in your advertisement's.
There was a segment on a local news station here in Cincinnati, Ohio about shoddy workmanship from HD subs for roofing & carpet installs. Didn't mention anything about electric work, but just the mention of a name could lead to lost business.
Just my .02 worth
Click to expand...

Agreed. All it takes is the Fox Undercover team to unearth some shoddy workmanship from HD and the word gets around. Next thing you know, nobody wants to hire someone from HD. They don't realize that you aren't an HD employee. They don't realize that you deal in a completely different trade. They just know that you are connected to HD.
 
jaylectricity said:
Agreed. All it takes is the Fox Undercover team to unearth some shoddy workmanship from HD and the word gets around. Next thing you know, nobody wants to hire someone from HD. They don't realize that you aren't an HD employee. They don't realize that you deal in a completely different trade. They just know that you are connected to HD.
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don't give the general public too much credit, it'll cost you money. the average person has an attenti.....what were we talking about?

go passed an HD or Lowes on any weekend day, see all those cars? everyone knows how bad things (service, pricing on smaller items, etc) are at these stores....yet they are packed.

the general public is way to busy to pay attention to anything longe.......where were we again?

just watch any tv show where they go out on the street and ask people questions....if people don't know who the vice....who are you and what are you doing reading my email?

think they remember that there was an expose on HD or Lowes 2 days after they see it?

seriously, don't panic worrying about things like that. I know a guy who is a plumber...many customers really dislike his company (too expensive, tech didn't know what he was doing, did damage, etc) yet, 30-40% will call them back 2 yrs later, just because they forgot that they didn't like the company. No bs.
 
how to make money doing this stuff? good question...

how to make money doing this stuff? good question...

Greg Swartz said:
I've been a contractor for just over a year now, and went solo 3 months ago.

I have 1 part time helper, but was curious from some of you seasoned guys out there...

1) Where do you get your leads?
2) What are some good selling techniques?
3) What type of bidding software do you use, if any?
4) Any other help you think a new / small company should have...

Thanks,
Greg
Click to expand...

i too am a one man band....

leads come from satisfied customers, friends, and out of the blue.
i joined BNI... it'll cost ya a few hundred bucks.

do it. now. it'll take a while to get rolling, but it's worth it. it'll get
you out of your truck, and out of the attic long enough to network
with some people.

craigslist is a mixed bag. 1/4 decent referrals, and 3/4 BS.
bonus side is it costs nothing.
downside is the time wasted chasing idiots there costs a bunch.
set your BS filter on "high" if you go there, or you'll spend all
your time chasing deals, and no time making money.
i quote over the phone on CL people, and that filters them
pretty quick. i do phone quotes on the high side, and if i get
one out of 10 that i blow the bid on, the time i saved not having
to drive all over orange and LA counties more than makes up for it.

absolute honesty is the key. so many people you will interact
with have no experience with electricians that doesn't induce
spitting and leave a bad taste in the mouth, that they are
convinced that no electrician was ever born in wedlock....

i've got a lunch date with a property manager who was impressed
enough with me telling her the truth 3 months ago, that she
wanted me to call her as soon as i have a break in my schedule.
no reason except i was honest, and talked her out of paying me
$1,500 for something she didn't need to have done. she'd of had
no way of knowing the truth if i hadn't told her.....

what i didn't know at the time was that her firm manages 11
million sq ft of leased office space in southern calif., and she
says she always is trying to find a decent electrician who is
honest.... time will tell...

right now, i'm working on a house in newport beach, that has
absentee owners... we are doing the whole thing by cellphone
and email. so far, it's 50 can lights, speakers in the ceilings,
and they want all future A/V possibilities prewired with smurf
tube and pull strings, just in case. where did the referral come
from? a friend of mine is painting the place....

now.... here is something i do, and it works..... this sounds
crazy, but it works.... it costs a buck and a half for a dry
erase marker in blue... my favorite color.

i figure out what i want to make for the month of June,
and i write it with dry erase marker on the inside of my
van windshield, just above the horizon line, like this:

June = $11,000

i write it where i will be looking thru it, as i go about my day.
it is high enough, that i look thru it as i drive, but not
enough in my way to be an annoyance.

then i relax, and go about my day. come the end of the
month, i look and see how much money came in the door.
it's usually pretty close to what i had written on the windshield.
and it never seemed to show up from the locations i thought it would.

there is one important thing, however. it'll only work if you
honestly believe that the amount is a realistic amount for
you to have come in..... i've found that it works better if
you start a little above your estimate for the month, and
stretch it over a period of six months.

using this technique, my income went from $3,000 a month
to $`14,000 a month over the span of about 8 months,
a few years ago.

and then i crashed and burned, working 7 days a week, 12-14
hours a day. you can work yourself to death with this plan.

three thoughts seem appropriate here:

1. it is done unto you as you believe.
2. the only thing standing between me and my goal, is me.
3. what would you do, if you knew you could not fail?


good luck.....


FulThrotl
 
Small Electrical Contractor Needs help

Small Electrical Contractor Needs help

Greg Swartz said:
I've been a contractor for just over a year now, and went solo 3 months ago.

I have 1 part time helper, but was curious from some of you seasoned guys out there...

1) Where do you get your leads?
2) What are some good selling techniques?
3) What type of bidding software do you use, if any?
4) Any other help you think a new / small company should have...

Thanks,
Greg
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Greg it takes awhile but I get most of my bussiness by word of mouth. I joined (CREIA) Carolina Real Estate Investors Association and ran a bussiness card ad and have more bussiness than I can do. I don't even have to give bids, everyone trust me and I appreciate that. I treat everyone like I want to be treated and do every job as if I was going to occupy it. Maybe its because I do good work, stay up on the code, and my work practice is good or just maybe its my age the reason everyone treats me that way but it sure feels good. Good luck and if I can ever help just let me know. Semper Fi. Buddy
 
Greg Swartz said:
I've been a contractor for just over a year now, and went solo 3 months ago.

I have 1 part time helper, but was curious from some of you seasoned guys out there...

1) Where do you get your leads?


you need to do alot of walking in your area and keep at it ,there's allways achance buyt it won't walk to you, don't give up , and allways wake up ready to go . this will keep you healthy.

2) What are some good selling techniques?

for techniques , be your self and do as much as possible to keep your " cool "
there are instances when you feel you will explode .

3) What type of bidding software do you use, if any?

To bid a job have in consideration the different elements sorrounding your place of work and the level of difficulty don't give a price with out looking at the site first.

4) Any other help you think a new / small company should have...

Since your a bigginner you must keep your budget tight till you feel you can afford the extra help . I have found that if you create a system for you , the ones that follow will have an easier understanding of the method.

Thanks,
Greg
Click to expand...

good luck!
 
E-Myth

E-Myth

Just got my E-Myth book.

I noticed several of you commented on this. Are there any areas you specifically noted / highlighted...

Funny Note:
I'm a Colorado Springs EC, and my E-Myth book belonged to someone here in town 5 miles away :D

Thanks everyone,
Greg
 
Small Electrical Contractor Needs help

Small Electrical Contractor Needs help

Greg, sounds like you are off and running. Just remember not to get more business than you can do well. Always be on time and call customers when you are late or need to set a new date and time. You can not determind how long some jobs take so I just let my customers know whats going on. Treat everyone like you want to be treated. Years ago I remember the phone company would say "someone will be there between 9 and 5 today" I sure hated to wait all day for that and sometimes they didn't show. That helped me to set my business up different. Semper Fi. Buddy
 
Sorry I don't have my book handy. It is still in boxes. There is a part about the guy going to a Hotel, every time he goes there they remember him and every single time every thing is the same. Such as mints, fire going, ect. when he went to the restaurant they people there know what type of coffee he liked. The hotel and the restaurant networked with each other. when the guy asked to speak with the manager of the hotel he was surprised to see this younger guy managing it. He was not the owner. the manager did show the guy a operations and procedures manual. basically look out for this part in the book. read it 3xs. This is how a franchise works. hamburgers what ever are made exactly the same way every single time. even a high school kid not wanting to work can do it. I think I read this book 4 times already and I still pick up things.
 
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