I have been in the electrical trade for over 10 years, working for other people. I am now venturing out on my own. I could really use some help on billing practices for wiring new houses. Is it common to charge by the sq. foot? If so how do you calculate price per sq. foot? Are light fixtures included, or extra? Please help!
Starting new business. Need help please.
- Thread starter elvis_931
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In my opinion, pricing a house by the square foot is a good way to lose your shirt! When I was in business we charged by the outlet. We would then add extra for the service, appliances, heating and cooling systems, etc. We would also add extra if the house had cathedral ceilings, was built on a slab, or other factors that made it more costly to wire. Keep Time and Material on a few jobs and you should be able to come up with an accurate "per outlet" price. Remember there are no shortcuts! Taking the time to do a thorough estimate leads to satisfied customers and increased profits. Quick and dirty "per square foot" pricing leads to the opposite.
We did one home where the owner wanted a receptacle about every six feet rather than the required 12 feet. He would have been pretty upset if we had doubled our square foot price. Since he was paying per outlet, he knew exactly how much he was adding whenever he requested an outlet above the code minimum.
If you want to include light fixtures, give the customer a quoted fixture allowance. Then if the customer wants super expensive light fixtures, they will understand that they will need to pay the difference.
We did one home where the owner wanted a receptacle about every six feet rather than the required 12 feet. He would have been pretty upset if we had doubled our square foot price. Since he was paying per outlet, he knew exactly how much he was adding whenever he requested an outlet above the code minimum.
If you want to include light fixtures, give the customer a quoted fixture allowance. Then if the customer wants super expensive light fixtures, they will understand that they will need to pay the difference.
JohnE
Senior Member
- Location
- Milford, MA
I charge per unit. Everything that goes in has a price. Much like Haskindm posted. I'd never price per square foot.
QES
Senior Member
- Location
- California
when I bid on a project I alway put alot of details into the contract. I never use a per sp feet method. But to do a ballpark price, I will go with device+sqft factor.
Brady Electric
Senior Member
- Location
- Asheville, N. C.
Starting new bussiness.Need Help
Starting new bussiness.Need Help
I agree pricing by the sq ft will get you into trouble. I check prices at the supply house daily because of price changes. Best way is to count all devices and price by each. Get all material list and call supply house and do your mark up and add labor. Usually you have extras on every job. As far as pricing Mike Holt has a good form on his site under free stuff. You put in all the answers and it will caculate for you. Good Luck. Semper Fi.
Starting new bussiness.Need Help
I agree pricing by the sq ft will get you into trouble. I check prices at the supply house daily because of price changes. Best way is to count all devices and price by each. Get all material list and call supply house and do your mark up and add labor. Usually you have extras on every job. As far as pricing Mike Holt has a good form on his site under free stuff. You put in all the answers and it will caculate for you. Good Luck. Semper Fi.
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