what would you charge?

[tonyou812]

I just want to say thanks again to everyone again. Lukily it was only my third small job on my own and I quickly am learning my mistake. I understand that i must figure my own operating costs before I do anything. From there I can better find an hourly rate in which to base my time on. This site is fantastic What a tool to have. thanks again people

 

[emahler]

Not an EC. I do work for a business that is probably even more competitive. We compete with profitable companies that have dirt floors sometimes in their shops.

You cannot compete in the niche he is competing in if you are not competitive with his pricing.

If you are competing in the niche of people who do not know the other guy will do it for $800 and you are charging $2000, they may well buy from you because they just don't know there is much option.

Many people do not understand there can be a radical difference in pricing from one contractor to another. Thats why it is best to shop around some to feel out the best deal (maybe not the lowest price).

there is a distinct problem with this plan on a smaller EC level...Try calling local contractors at the beginning of the month and getting prices for different tasks...Then call the same guys at the end of the month when their supply house bill is due, their truck payment is due, etc...and get prices for the same tasks..

I'd bet dollars to donuts you will not only get prices all over the board from different contractors, but you will get different prices at different times from the same contractors.

We are not a restaurant with a menu (well some flat rate shops are)...most small businesses simply make up the prices as they go. Or they have a set hourly rate...but I'd bet that no two jobs done T&M ever have the same price.

So worrying about what everyone else charges...especially in the resi/lt commercial service market....is nothing more than a waste of energy and resources....because you will only know yesterdays going rate...and by the time you learn todays rate, it will already be tomorrow.

when you work T&M, it's easy to compare hourly rates. When you work flat rate/contract price/fixed price (pick your term)...I can easily justify the extra cost. I can easily explain to the customer the extra cost. I can't get customers to understand the differences when all they know is the hourly rate.

but hey...industrial controls...resi service...220...221...what's the difference...

 

[tonyou812]

i dont really care what other people are charging, nor do I want to find out prices so i can lowball , Im new to this so It would be nice to know that im in the ball park.

 

[emahler]

i dont really care what other people are charging, nor do I want to find out prices so i can lowball , Im new to this so It would be nice to know that im in the ball park.

let me ask you a silly question...well 2 actually...

1) what ballpark?

and

2) who cares? if they hire you, you were priced right. If they don't hire you, you were priced wrong. You won't know until after you give the price. The ballpark will change tomorrow, guaranteed. And if you don't charge enough for your services, it doesn't matter if you are smack in the middle of the ballpark, you are still losing money and still working your way out of business.

the only thing that matters is the perceived value you parlay to your customers and the fact that they will pay you for it.

Edit to add....it's very rare for a contractor who truly knows his costs, and prices accordingly, to have to raise his prices up to the 'going rate'...typically a contractor that prices according to his true costs, is on the high side of the equation.

 

[tufts46argled]

Don't Diss

Don't Diss

Buss duct? Pipe? 40' drop? 30 amp? This is NOT a small job. I don't know where in NJ you are, but unless it's in the part of Jersey that's in Mississippi, you'd better rethink your rate schedule.

You have to pay yourself as an employee, plus you have to pay yourself as a business owner.

Hey, even in Mississippi we charge more than $50.00 an hour!