Up front pricing

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OK Sparky 93

Senior Member
Location
Iridea14Strat
Occupation
Electrician
For all that practice or utilize flat rate or upfront pricing what ever we want to call it. Especially those that have created their own.

I have been using one for a few months now. I know I am not thinking about every single minute that goes it to establishing a labor unit for a given task for service work. And I am not sure if I could establish my own flat rate pricing based on what I am currently using.

For example; To replace a double pole GFCI breaker has a a labor unit of 1.5 hours. Probably, if I am counting the time leaving the home office and waiting in the supply house, driving to the job, doing the job, invoicing and getting back to the office. Hell I might have more than that.

But then to have a material allowance for less than $60, and there is no way I can get a 2 pole breaker for that. I cant even get a single pole for less than that.

How do you price a task that like that?

I am not carrying around $200 breaker or several that I don't move often enough. whether I did or I didn't I know the time needs to be accounted for. But Shouldn't the materials be properly priced?

Time is time and parts are parts.

Another question!
Out of a whole slew of items/cost that could be construed as indirect cost, some being You have to have and some being you'd like to have.

Is your truck a want or a need, what would be a proper $ to allow in your OH? And do you allow for a high mileage replacement or a higher dollar replacement?

Do you as a single man even if you may or may not grow to have other techs, include an owners salary, lets say equivalent to what you would pay a tech in your OH?

What about allowing for retirement, or possibly as crappy as it may be health insurance, and any other fringe benefits?

What ever cost you deem is necessary, to make it worthwhile, now as a service tech, how many actual hours do you estimate actually getting you hands dirty?

Is there anything I am forgetting?
 
I do unit pricing for everything I can…some jobs/tasks do not lend themselves to it well, though.

I set all my prices towards upwards mobility. Adding help, buying better tools, the next truck will be a step up, etc. I have two guys working hourly and I charge them out at 3x their rate of pay. That can either be direct billing on a T/M job or the units are priced so that the labor time should be 1/3 of what is budgeted for.

I think a tuck and tools are a need, even if we want them.

I’m not doing much service work, so that probably makes unit pricing easier. That said, in my market, I do not think I would attempt units on service work. For me, a minimum charge (whether stated that way or not) is established and a time limit is applied to that charge. After that, it has to be time and materials. To be clear, in my mind service work is the call that starts with “Hey, I’ve got a breaker that keeps tripping…”. If it‘s changing out fixtures and such, that may be different. I’d be comfortable with a flat unit rate, paired with a disclaimer. I would want to approve the fixtures being done at that rate. If they’re standard type fixtures, great. I’ve hung a 109lb chandelier that had 200 crystals on it that couldn’t be touched with bare hands and after opening up the ceiling to add enough blocking to feel comfortable, safe to say I lost my butt because I priced it within the job as “a ceiling mounted fixture.“
 
With fixed rate you basically are charging enough to cover some the unknowns you will run into when doing the job.

I don't know how to tell you to deal with when the unknowns become well beyond what you accounted for. Some jobs I guess you maybe have to realize you are just not going to make as much on or even lose some on them, but then there is still that risk of a couple hundred dollars quoted job turning into a couple thousand being what it should have been quoted. Probably best to not quote anything until you have taken a look at things at the very least, or make it clear that the quote over the phone is pending until you see what is there.

You don't want to quote them over the phone to replace a 2 pole GFCI breaker then show up and find out existing is a FPE breaker or something like that.
 
Would or should If trying to implement FRP, there be times that it is going to be T&M, or stay with the FRP model, even it might be a loss on the job? I have had some that circumstances required multiple trips and having to chase parts that I don't have (tombstones). I have a selection but not all that is out there. (should I) The result is that out of total time involved, less than half is actually on the job.

I had a call that, and it was a third party asked about how I charged or what I charged, he had a relative. Anyway he was a GC I meet at a COC and we talked a bit. The numbers I threw out to him, must have seemed reasonable enough for me to go take care of one of his relatives.

I feel like as someone else described, that I may be higher than giraffe nuts. But maybe not.

What I do know is that I am not putting in 2000 hrs, hell maybe not even a 1000, but that is the benchmark applied, and when I start adding up the cost, and probably leaving out some, like what if I ever needed an attorney. Anyway back to it.

I get to the (light blowing as soon as switched on) job. Before that asked customer if he wanted to go pick up a fixture, just in case , (and it was).

Now Ive got to go (he wants me too) on a shopping trip. And be cost effective (in my mind). Normal trips to the supply house to ensure a stock of normally used items are non billable. Although it has to be covered as you all know. But these trips, If doing FRP, what do you do with that. Call it an hour, and apply an amount for a (whatever), that could vary in its price

My rate, includes what I would pay someone else, and an equal rate that I the owner would get, and hopefully I have all covered in my OH, and then make a profit.

I was reflecting about when I first started in 1993. I think my employer was charging a rate of $65. If in thirty years, minimum wage has increased pushing 3 times if not more ( I guess it may depend on where you are), would it reason that charge would do the same?

I do not have a 6 figure personal income, and on the last few jobs Ive done, I could pay the labor, and expenses. The owner got $20 on a 6 hour day. No profit.
 
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