What are contractors charging?

[hotblueelectric]

As an owner in this bad economy wondering what electrical contractors are charging?

Residential
What do you charge for your hourly time as an owner working in the field?
What do you charge for your journey man electrician?
What do you charge for your appretice?
What do you charge for a service call?
Do you mark up both labor and materials?

Commercial
What do you charge for your hourly time as an owner working in the field?
What do you charge for your journey man electrician?
What do you charge for your appretice?
What do you charge for a service call?
Do you mark up both labor and materials?

Just curious what contractors are charging out there.
We are a father and son team and normally charge:
Residential $65-$75 service call, $95 and hour for both of us.

Commercial we charge $95 service call, $150 an hour for both of us.
We only mark up materials about 30-50%
In this economy it seems that we are loosing bids, maybe we need to lower our rates. What are your thoughts?

Thanks for your responses

 

[Bobhook149]

mark up of 30-50% might be the problem. In my area your prices are average to low. $125 2 guys $65-70 for one. Commercial same rate or bid .

 

[nhfire77]

I work for a couple of EC's per diem. That is the going rate. mark up of 50% maybe too much on larger items, but small parts are normally marked up that much.

I have taken the advice of the successful (at least that's what they say) contractors. When the economy is bad, raise your rates, do less work, make the same money. I cannot believe it, but it is working and I am loving it.

I wouldn't show up to a service call for less than $95, don't budge on that.

 

[cadpoint]

Use "Wages in Texas" in your favorite search engine,
You'll get listing by county, state, or by occupation.

Or any of these variable terms; minimum wage in texas, salaries dallas texas salaries in houston texas, salaries in san antonio texas, salaries in austin texas, unemployment wages texas. texas wage information.

:grin: hope that helps...

 

[ItsHot]

Prices?

Prices?

I work for a couple of EC's per diem. That is the going rate. mark up of 50% maybe too much on larger items, but small parts are normally marked up that much.

I have taken the advice of the successful (at least that's what they say) contractors. When the economy is bad, raise your rates, do less work, make the same money. I cannot believe it, but it is working and I am loving it.

I wouldn't show up to a service call for less than $95, don't budge on that.

Has your doctors,dentist, physical therapist, auto mechanic, fuel supplier,electrical power supplier, insurance agents, natural gas provider, state licensing dept. , local permitts, grocery merchant, etc. ,etc...lowered their prices? But for some reasons a lot of EC's think they have to offer "unreal" lower rates at the moment!

 

[nhfire77]

Has your doctors,dentist, physical therapist, auto mechanic, fuel supplier,electrical power supplier, insurance agents, natural gas provider, state licensing dept. , local permitts, grocery merchant, etc. ,etc...lowered their prices? But for some reasons a lot of EC's think they have to offer "unreal" lower rates at the moment!

No... A 10%-15% price increase is not unreasonable. We are not gouging.

We offer unparalleled customer service, along with quality craftsmanship. The work we do is the best, we do not do value engineering. Our customers know you get what you pay for. They know they are paying more. The customer get less headaches and no call backs.

The customer is handled with "kid gloves." We baby them. But, they feel better in the end. They know they can whine about the small stuff and we will smile and take care of it, because we are well compensated.

Price gouging will eventually put you out of business.

EDIT: I misread your post, I thought you were against higher rates. All the above is still true though.

 

[cadpoint]

Were can I Sign up to run behind this Flag!

We offer unparalleled customer service, along with quality craftsmanship. The work we do is the best, we do not do value engineering. Our customers know you get what you pay for. They know they are paying more. The customer get less headaches and no call backs.

The customer is handled with "kid gloves." We baby them. But, they feel better in the end. They know they can whine about the small stuff and we will smile and take care of it, because we are well compensated.

Well said, Congrats!

 

[nhfire77]

Were can I Sign up to run behind this Flag!


Well said, Congrats!

Thank you.

 

[macmikeman]

One doctor assisted in the delivery of each of my kids when they each were born. He swung from delivery room to room spending around 5-10 minutes total each time with my wife when the babies were really ariving. His fee each time was more than $5000. I know they go to school for a long time, and stay current, and yada, yada, yada. Never use the term "price gouging" near me. There is no such a thing in the electrical world. Just people who go around saying "that's gouging". Our work too is critical, and sometimes the level of difficulty is very high, sometimes very dangerous. If some charge what others perceive as gouging, good for them, they have reached a place where they understand the value of the service they perform, not what society, or the license regulatory board has indoctrinated them to think. The important thing is to do the service in exactly the manner that nhfire77 puts it.

 

[satcom]

Has your doctors,dentist, physical therapist, auto mechanic, fuel supplier,electrical power supplier, insurance agents, natural gas provider, state licensing dept. , local permitts, grocery merchant, etc. ,etc...lowered their prices? But for some reasons a lot of EC's think they have to offer "unreal" lower rates at the moment!

Anyone that depends on an Electrical Contracting Business, to support their family, knows their costs and can't just lower their prices. I think it must be a lot of part time ECs who have other incomes, that think they can do that. I looked at all my expenses, and not one vendor, cut their prices since the down turn started, as a matter of fact, most of them increased their prices. I guess some electricians think they are trading soy beans, not providing a service.

 

[okeefe]

I will not lower my prices, but some of the other local contractors lowered there prices just to keep there guys working so they don't have to lay them off with the chance of losing them to other employers.

 

[satcom]

I will not lower my prices, but some of the other local contractors lowered there prices just to keep there guys working so they don't have to lay them off with the chance of losing them to other employers.

What are they thinking, we are in the middle of a long down turn, not a short turn seasonal drop, where you may give up some assets in the short term and wait for the industry to recover and replace the assets, cutting your prices will assure you can't replace any assets, wow.

 

[220/221]

maybe we need to lower our rates

Don't fall into that trap.

Have any of your costs gone down?

Mark up your materials more. You have top purchase, stock and warranty your materials. Mark up is earned. 100% minimum on items under $200-$300. Much higher on really small stuff. Don't sell a 25 cent switch for 32 cents. Sell it for $2 or you will lose money just accounting for it.

Also, avoid the problems associated with T&M whenever possible.