Why we can't compete with handy man.

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renosteinke

Senior Member
Location
NE Arkansas
It's mighty hard to answer some of the issues raised without someone getting the idea that you're being rude to them - so, I'll declare right up front: if you feel insulted, go back and learn some more. Don't hate me because of your ignorance.

A bare patch of dirt 'supports itself' if the folks living on it have another income paying all the bills. That's not running a business. I regret that farming was used as an example, but if we want to go down that road, farms are legendary for the cheap 'field engineered' work that figures so prominently in the outrageously high accident rates in the farming industry. We are also constantly deluged with complaints about "corporate" farms "ruining" the little guy. Guess that maybe the family farm isn't so competitive after all.

Yes, it IS a lot more expensive to run a small shop than a large one - at least, on a per-person basis. This is because all the regulatory and overhead expenses fall upon the shoulders of the one guy in the place - rather than being spread out over the entire employee base. One license, one insurance policy, one OSHA seminar, one EPA certificate, one office, one phone .... all remain the same whether the firm has one truck or twenty.

Are we expensive? Well, when someone asks for a 'break,' I first look at their car and home. If their conditions are nicer than mine, I figure that they're the ones who ought to be giving ME a break. I look around at my fellow tradesmen, and I don't see too many who can afford a proper house - let alone an entire farm.

Folks in rural areas often preface their electrical questions by asserting that there is no need to worry about codes and inspections. Well, they're on to something: all that 'governemnt' costs money. That's included in the electricians' bill.

That's where all the bad feeling towards 'handymen' comes into play. It's NOT a 'level playing field' when one has expenses to meet and demands to fulfill, and the other gets a free pass. Heck, even I could sell corn for pennies a bushel, as long as I can take it from my neighbors' farm!

Now, lest out farmer take this personal, I also think we need to point out just how many of our fellow citizens are completely unaware of the 'hidden' costs of running a business. They alre also unaware of the massive taxes they pay- simply because they never see the money. While your paycheck might show 30% in 'deductions,' the total is at least double that. That's how much you're taxed before you see the check. The $10/hr that an employer pays has to be billed at $18/hr, just to pay the taxes! Social security, workmans' comp, employment taxes, unemployment insurance ... you name the agency, they've got their fingers in the kettle.

Please note how none of these fees apply to farmers. No wonder we seem 'expensive' to them.

If the general population understood these expenses, political terms would be limited by the length of our ropes- and our codes would fit inside a matchbook.
 

Strife

Senior Member
I'm not talking about your mother in law. And when I run across your mother in law, I do give her a break. I did a lot of jobs where I worked 3 hrs and only billed 1hr (I don't want to mess with the hrly rate, so I cut the time). Heck recently I went to a lady who called me on an emergency call at midnight, the whole bill came to around 300 or so. She had only $80.00 cash, which (on her account) she worked a whole day cleaning houses(and I believed her seeing the house and car). I took the 80 and told her not to worry about. I'm talking about people with a brand new mercedes and a brand new lexus in their garage that cry "Oh man, I already paid this guy 500, now I have to pay you another 800. This is really out of my budget", as if I'm supposed to do it for free because he fell for a handyman low price. Now I know some people blame the owners for trying to get the cheapest price, and to some extent is true. But at same time the homeowners have no clue that the work the handyman will do won't not be up to code, or if their house burns down there's no one they can sue. On the other hand the handyman KNOWS he can not install it safely for that money(let's be honest here, there's so much you can blame on ignorance, but most handymen KNOW they don't do it per code. Mostly because they know they don't know the code, but that's another subject), but he does it anyway.
And I'm not talking about changing a switch. I know the pictures don't show that in my original post. I'm talking about a full kitchen remodel, with granite countertops and all.

I can fully understand all the sentiments in this thread. There is a problem though that I have learned most contractors fail to recognize.

Consider my mother-in-law. She's retired and living on less than $600/month SS. If a light switch goes bad she doesn't have the knowledge to fix it and to hire a contractor will cost her over $100.00!
 
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bthielen

Guest
If the truth got out, I think you would be surprised on how many of us give back to our communities in many different ways. Please don't lump us all together as greedy and uncaring to the plight of those around us that are not so fortunate.

Fair enough. I apologize.
 
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bthielen

Guest
A bare patch of dirt 'supports itself' if the folks living on it have another income paying all the bills. That's not running a business. I regret that farming was used as an example, but if we want to go down that road, farms are legendary for the cheap 'field engineered' work that figures so prominently in the outrageously high accident rates in the farming industry. We are also constantly deluged with complaints about "corporate" farms "ruining" the little guy. Guess that maybe the family farm isn't so competitive after all.
I'm not sure how this applies to what I've said. My reference to my farming was purely to respond to an earlier comment about how overhead builds and soon you can't work for less than $100/hr. To the contrary. What I was trying to point out was that the business structure I'm referring to wouldn't come close to the overhead cost I've incurred even with my small part time farming operation and despite the higher overhead costs, I can still offer my services for less than $100/hour. Remember, my farming operation's goal is to generate a profit and I do and it's been a satisfactory one. That's all I was trying to say.

Yes, it IS a lot more expensive to run a small shop than a large one - at least, on a per-person basis. This is because all the regulatory and overhead expenses fall upon the shoulders of the one guy in the place - rather than being spread out over the entire employee base. One license, one insurance policy, one OSHA seminar, one EPA certificate, one office, one phone .... all remain the same whether the firm has one truck or twenty.
I don't think you quite understand. I'm not talking about running a full-scale commercial/industrial contract business. I'm talking about an extremely small scale operation with one owner/employee and maybe one extra helper. No big jobs, just those pesty jobs you guys aren't really interested in taking unless you get hungry. Wiring a new pole shed, garage, room addition, repair a defective switch or circuit, etc.

You see the problem is two-fold. 1) Cost and 2) time. You guys aren't interested in an afternoon project that can't generate few months income and so getting you to agree to the job is the first hurdle and then getting you to actually show up in a reasonable time is the second. Homeowners get tired of putting up with this and eventually they just decide it's not worth it and take it on themselves or find someone else willing to do it even if it means it doesn't get done right or inspected. They may seem like small projects to you, and they are, but to the homeowner, it's the only project and it is as important to them as the projects your bigger clients are to them.

I don't see too many who can afford a proper house - let alone an entire farm.
Don't you even pay your own help well enough? Who you kidding? I have a pretty good understanding what IBEW members are paid and they do okay. Sorry, couldn't help myself. :)

Folks in rural areas often preface their electrical questions by asserting that there is no need to worry about codes and inspections. Well, they're on to something: all that 'governemnt' costs money. That's included in the electricians' bill.
Can't argue with that.

That's where all the bad feeling towards 'handymen' comes into play. It's NOT a 'level playing field' when one has expenses to meet and demands to fulfill, and the other gets a free pass. Heck, even I could sell corn for pennies a bushel, as long as I can take it from my neighbors' farm!
But that's really where I'm coming from. I'm in the same boat with you regarding handymen, DYI, and other work that is not done right or properly inspected. This past spring my mother-in-law asked me to look at a duplex because it was black! You guessed it, it was fried. When I traced the wiring I discovered that someone at some point in the past had bypassed the fuse because the fuse socket was shot. There was no OCPD on this duplex because it was fed directly from the supply meter load. Since I couldn't disconnect the power, I carefully wirenutted the wires and called an electrician to take care of it. Fortunately for her, this wasn't inside her house or she might have been sleeping in the yard now or worse - living with us!

Now, lest out farmer take this personal, I also think we need to point out just how many of our fellow citizens are completely unaware of the 'hidden' costs of running a business. They alre also unaware of the massive taxes they pay- simply because they never see the money. While your paycheck might show 30% in 'deductions,' the total is at least double that. That's how much you're taxed before you see the check. The $10/hr that an employer pays has to be billed at $18/hr, just to pay the taxes! Social security, workmans' comp, employment taxes, unemployment insurance ... you name the agency, they've got their fingers in the kettle.
No offense taken. I am fully aware of the "hidden" costs.

Please note how none of these fees apply to farmers. No wonder we seem 'expensive' to them.
This is not a true statement. If I hire employees, I do have these issues to deal with. Remember, my farming is only a small portion of my income. I am an electrical designer/engineer by trade and have been in this business for over 20 years. I have been owner/co-owner/operator of sole proprietorships and have co-owned/operated an LLC corporation in which I managed the books, the accounting, and the tax preparation. I'm not totally green behind the gills as you all might think.

Maybe I'm not getting my points across very well.
 

readydave8

re member
Location
Clarkesville, Georgia
Occupation
electrician
Start a business.

Work hard for a year or two before noticing how deep in dept you have managed to get--usually work slows down so there's no new money to pay old bills, some of the bad debts you were counting on eventually collecting won't ever be paid, maybe an unrelated catastrophe like a wreck or illness.

Learn how to make not only enough to live on but also enough to pay off existing debt.

When you get caught up continue to live on less than you earn so as to be able to build up a buffer for when things go bad again.

Repeat twice before you finally get it.

Change out a light switch for nearly nothing to help someone and suddenly everybody that wants a light switch changed for nearly nothing is calling you.


I try to cut customers a break when they seem truly needy. Anyone with satellite TV doesn't qualify. I haven't done it lately but in the past have done volunteer work for Habitat, let them decide who deserves to be helped.


I don't think I'm especially greedy but I may be wrong.
 

Jim W in Tampa

Senior Member
Location
Tampa Florida
I'm not sure how this applies to what I've said. My reference to my farming was purely to respond to an earlier comment about how overhead builds and soon you can't work for less than $100/hr. To the contrary. What I was trying to point out was that the business structure I'm referring to wouldn't come close to the overhead cost I've incurred even with my small part time farming operation and despite the higher overhead costs, I can still offer my services for less than $100/hour. Remember, my farming operation's goal is to generate a profit and I do and it's been a satisfactory one. That's all I was trying to say.


I don't think you quite understand. I'm not talking about running a full-scale commercial/industrial contract business. I'm talking about an extremely small scale operation with one owner/employee and maybe one extra helper. No big jobs, just those pesty jobs you guys aren't really interested in taking unless you get hungry. Wiring a new pole shed, garage, room addition, repair a defective switch or circuit, etc.

You see the problem is two-fold. 1) Cost and 2) time. You guys aren't interested in an afternoon project that can't generate few months income and so getting you to agree to the job is the first hurdle and then getting you to actually show up in a reasonable time is the second. Homeowners get tired of putting up with this and eventually they just decide it's not worth it and take it on themselves or find someone else willing to do it even if it means it doesn't get done right or inspected. They may seem like small projects to you, and they are, but to the homeowner, it's the only project and it is as important to them as the projects your bigger clients are to them.


Don't you even pay your own help well enough? Who you kidding? I have a pretty good understanding what IBEW members are paid and they do okay. Sorry, couldn't help myself. :)


Can't argue with that.


But that's really where I'm coming from. I'm in the same boat with you regarding handymen, DYI, and other work that is not done right or properly inspected. This past spring my mother-in-law asked me to look at a duplex because it was black! You guessed it, it was fried. When I traced the wiring I discovered that someone at some point in the past had bypassed the fuse because the fuse socket was shot. There was no OCPD on this duplex because it was fed directly from the supply meter load. Since I couldn't disconnect the power, I carefully wirenutted the wires and called an electrician to take care of it. Fortunately for her, this wasn't inside her house or she might have been sleeping in the yard now or worse - living with us!


No offense taken. I am fully aware of the "hidden" costs.


This is not a true statement. If I hire employees, I do have these issues to deal with. Remember, my farming is only a small portion of my income. I am an electrical designer/engineer by trade and have been in this business for over 20 years. I have been owner/co-owner/operator of sole proprietorships and have co-owned/operated an LLC corporation in which I managed the books, the accounting, and the tax preparation. I'm not totally green behind the gills as you all might think.

Maybe I'm not getting my points across very well.

Not sure about others but i am starting to wonder what your growing.
Your not wanting to get into the cheap electrician business but you think someone else should.
If you couldnt fix that simple problem then i question if you even know close to enough about electrical to judge the trade as to what is involved. Yes there might be a house 5 minutes from your door that needs 15 minutes of an electricians time but they are few and far apart and you wont be doing 20 of them a day. Put a tool belt on see just how much you can do in a day. Your living in a dream world. Yes i have ran a few calls that i walked in changed the switch and walked out. Far more others that take an hour or 2 .
 

iwire

Moderator
Staff member
Location
Massachusetts
It's mighty hard to answer some of the issues raised without someone getting the idea that you're being rude to them - so, I'll declare right up front: if you feel insulted, go back and learn some more. Don't hate me because of your ignorance.

Oh please teach me great one for you are all knowing and the rest of us are just ignorant.:roll:

I would not take one bit of advice from you.
 
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electricmanscott

Senior Member
Location
Boston, MA
You make it sound as if the cost to run a one-man, home-based, low-keyed electrical business out of a van would be similar to managing a 50 employee, industrial/commercial electrical contracting company. You must think I?m pretty gullible and maybe I fit that description but I figure as long as someone doesn?t fill that niche, the shoddy work you?ve been seeing will continue because the average homeowner can?t justify paying for your overhead.

What about that overhead? You mentioned a parts inventory. Let?s see. You buy them at wholesale, for convenience sake you store them in your van or at home until needed, then charge a premium to your customers when you use them. The only cost you have is the storage space and that?s paid for by the markup. If not, then you need to re-evaluate your processes. So you?ve got a van and a few tools. If a job comes up requiring more specialized equipment, you rent it and bill it in to the job.

I run a small part time farming operation. I manage that farm entirely on its own and do not support that operation using income from my regular job. I am quite certain that my cost in equipment, tools, and land is considerably higher than it would be to run the kind of small time electrical operation I?m talking about. Despite my overhead costs, I don?t charge anywhere near $100/hr. when I contract myself out. I'm not going to get rich doing it but I'm satisfied. I'm too old now to consider changing careers and obtaining my masters so all I can do is offer my opinion - good, bad, or otherwise.

We have a local doctor that opened a small clinic and chose not to seek the high salaries typical of your average doctor. Instead, she?s more interested in providing a service to people because she cares more about people and integrity than about the almighty dollar. She also reduces paperwork and costs by not filling out and submitting insurance claims. She leaves that responsibility to her customers where it belongs. Her price for an office visit make it much more affordable for people that have little or no insurance to obtain medical care. She takes it a step further and offers something you rarely see anymore ? house calls. Wow, a doctor that provides a service, is not out to get rich, and knows her customers by name and not by their insurance policy number! Who would-a thunk?

I?ve read plenty of boasting on this site about how lucrative the electrician?s career can be. Maybe it is well deserved because unlike us farmers you are highly trained, educated, and specialized but it seems to me that if you guys really cared as much about safety and quality as you claim; the greed factor could be set aside once in a while to help the average person afford your high costs, especially those on fixed/low incomes. Nobody?s asking you to work for nothing. We all know you are well paid for what you do but is it always necessary to be well paid?


Strive for mediocrity. Way to be champ. :roll:
 
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bthielen

Guest
Not sure about others but i am starting to wonder what your growing.
Your not wanting to get into the cheap electrician business but you think someone else should.
The problem is that I'm just not interested in investing what it would take to obtain the necessary licensing at this late stage in my life. I'm not going to be around long enough anymore to recoup the costs and so it's not a very smart investment.

If you couldn't fix that simple problem then I question if you even know close to enough about electrical to judge the trade as to what is involved.
You actually wanted me to fix it? You must not have been paying attention. I have already pointed out that I am not qualified to do what I propose is needed because I don't have the proper licensing. I thought this entire thread was a rant about non-licensed persons doing work requiring proper licensing and now you're telling me to do exactly what you are complaining is being done. Let's be sure about what we want please. The only way I could have done it would be under live power because I wouldn't get authorized to pull the meter to kill power. I suppose I could have fixed it live but are you really suggesting this is a good answer?
 

growler

Senior Member
Location
Atlanta,GA
You actually wanted me to fix it? You must not have been paying attention. I have already pointed out that I am not qualified to do what I propose is needed because I don't have the proper licensing. I thought this entire thread was a rant about non-licensed persons doing work requiring proper licensing and now you're telling me to do exactly what you are complaining is being done. Let's be sure about what we want please. The only way I could have done it would be under live power because I wouldn't get authorized to pull the meter to kill power. I suppose I could have fixed it live but are you really suggesting this is a good answer?

Were you going to charge your mother-in-law to do this work? She is living on a fixed income for Christ sake.

A licensed is required to do electrical work for hire ( you know, money).

I go to another state where I don't hold a local license and do electrical work for family members. It's OK because I don't charge for the service.

I'm willing to bet that you can send your poor old mother-in-law down to get a permit (homeowner) to change that fuse panel out to a nice new breaker panel and so long as you do the work as a family member ( for free ) no one will question it.
 

growler

Senior Member
Location
Atlanta,GA
I run a small part time farming operation. I manage that farm entirely on its own and do not support that operation using income from my regular job. Despite my overhead costs, I don?t charge anywhere near $100/hr. when I contract myself out.


What exactly would a small, part time farming operation contract it's self out to do? I have looked in the yellow pages to see what they normally charge but I don't see any adds.

Now if we are talking about your engineering services, what type of service do you provide and what do you charge and why? Probably not a lot of destitute little old ladies needing a design engineer.
 

Jim W in Tampa

Senior Member
Location
Tampa Florida
The problem is that I'm just not interested in investing what it would take to obtain the necessary licensing at this late stage in my life. I'm not going to be around long enough anymore to recoup the costs and so it's not a very smart investment.


You actually wanted me to fix it? You must not have been paying attention. I have already pointed out that I am not qualified to do what I propose is needed because I don't have the proper licensing. I thought this entire thread was a rant about non-licensed persons doing work requiring proper licensing and now you're telling me to do exactly what you are complaining is being done. Let's be sure about what we want please. The only way I could have done it would be under live power because I wouldn't get authorized to pull the meter to kill power. I suppose I could have fixed it live but are you really suggesting this is a good answer?

So now your telling us your unqualified to do the job you think we should do cheap.
Wake up. Easy jobs that require no skill ,tools,permits ,license , etc. earn low pay of less than $10 an hour. Skilled labor with the above make far more. So here you are suggesting we work cheap because someones mother in law is poor. Very generious of you . When i go to my doctor i will ask him to charge me $20 cause i can't afford $100.
You did not fix her problem because you do not have the skill , not because of the license. She could have got a permit for any repair she needed and the POCO would pull meter so you can do the job. Real problem is you could not do the job. Designing is not even close to actually being an electrician. Too much money for you to open a ligit 1 man shop but not too much for us.
Yes plenty of handymen out there to do a hack job at cheaper price and always will be. When states and counties take a serious effort to bust them then we will see a change.
No we can not compete a handyman and not trying to. You get what you pay for. Handymen here charge about 25 to 35 an hour on craigs list you might get a ceiling fan installed even cheaper but best hope he does not get hurt or damage anything or burn your house down.
You run a farm that supports itself but not you. Why keep it ?
 

OregonSE

Member
Location
Oregon
Handymen electrical

Handymen electrical

As an electrical contractor you need to understand that not always on a service call is a switch just the problem.Maybe the fixture is bad,maybe the wires are fried above the light fixture,maybe at the switch,maybe the installation was done by a handyman and was not legal in the firstplace.Is the switch grounded?Is there a legal box.We go correct handymens mistakes all the time.One of many examples.
We get the little old lady whos neighbor is a handyman and replaces a switch.Now when she turns on the light,power goes out in the next room.Or the light fixture thats conductors in the fixture box are burned up from using to high of wattage lamps.
This is what we as electricians see all the time.Sure there is the simple switch replacement but with that switch replacement you get a Licensed professional who does knows what he is doing and is licensed bonded and insured.Cleaning up electrical work done by handymen can be a real nightmare.



I can fully understand all the sentiments in this thread. There is a problem though that I have learned most contractors fail to recognize.

Consider my mother-in-law. She's retired and living on less than $600/month SS. If a light switch goes bad she doesn't have the knowledge to fix it and to hire a contractor will cost her over $100.00! To replace a $5 light switch? I realize that contractors have expenses but is there any justification for not finding some way to provide your services in a more graduated price structure? I've kicked myself for not pursuing a electrical master's licesnse because I know that with nothing more than a tool belt on my hip I could be busy full-time offering a low-cost electrical service alternative to fill that empty niche. I know of a carpenter that did that as a retirement plan and he was turning down jobs. No overhead costs so his price for the carpentry was charged by the hour for his labor expense only. If he needed extra help for a job, he added that cost to the bill.

One of the biggest problems facing homeowners is getting serviced by a contractor in a reasonable amount of time or at all. You all seem more interested in grabbing that mult-million dollar contract than you are at picking up a job to replace a light switch. That's fully understandable but the average homeowner that needs that light switch replaced and doesn't have the knowledge to do it themself is stuck waiting....and waiting....and waiting....for a contractor to first accept the contract and then do it in the time as promised. It sucks to be that homeowner!

It's these situations that encourage the hiring of handy-men even though it may be illegal.
 

OregonSE

Member
Location
Oregon
This site is designed for the (See the home page).
You make it sound as if the cost to run a one-man, home-based, low-keyed electrical business out of a van would be similar to managing a 50 employee, industrial/commercial electrical contracting company. You must think I?m pretty gullible and maybe I fit that description but I figure as long as someone doesn?t fill that niche, the shoddy work you?ve been seeing will continue because the average homeowner can?t justify paying for your overhead.

What about that overhead? You mentioned a parts inventory. Let?s see. You buy them at wholesale, for convenience sake you store them in your van or at home until needed, then charge a premium to your customers when you use them. The only cost you have is the storage space and that?s paid for by the markup. If not, then you need to re-evaluate your processes. So you?ve got a van and a few tools. If a job comes up requiring more specialized equipment, you rent it and bill it in to the job.

I run a small part time farming operation. I manage that farm entirely on its own and do not support that operation using income from my regular job. I am quite certain that my cost in equipment, tools, and land is considerably higher than it would be to run the kind of small time electrical operation I?m talking about. Despite my overhead costs, I don?t charge anywhere near $100/hr. when I contract myself out. I'm not going to get rich doing it but I'm satisfied. I'm too old now to consider changing careers and obtaining my masters so all I can do is offer my opinion - good, bad, or otherwise.

We have a local doctor that opened a small clinic and chose not to seek the high salaries typical of your average doctor. Instead, she?s more interested in providing a service to people because she cares more about people and integrity than about the almighty dollar. She also reduces paperwork and costs by not filling out and submitting insurance claims. She leaves that responsibility to her customers where it belongs. Her price for an office visit make it much more affordable for people that have little or no insurance to obtain medical care. She takes it a step further and offers something you rarely see anymore ? house calls. Wow, a doctor that provides a service, is not out to get rich, and knows her customers by name and not by their insurance policy number! Who would-a thunk?

I?ve read plenty of boasting on this site about how lucrative the electrician?s career can be. Maybe it is well deserved because unlike us farmers you are highly trained, educated, and specialized but it seems to me that if you guys really cared as much about safety and quality as you claim; the greed factor could be set aside once in a while to help the average person afford your high costs, especially those on fixed/low incomes. Nobody?s asking you to work for nothing. We all know you are well paid for what you do but is it always necessary to be well paid?
 
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bthielen

Guest
Were you going to charge your mother-in-law to do this work? She is living on a fixed income for Christ sake.
It would not be legal for me to do the work because I am not a licensed electrician. Yes, I did what I could to temporarily remove some of the risk. Yes, it was probably illegal for me to do so but I felt it was better to take that chance rather than see someone get hurt. Yes, I paid for the electrician to come out and make the repairs.


I go to another state where I don't hold a local license and do electrical work for family members. It's OK because I don't charge for the service.
The last understanding I have with the law, whether you charge someone or not is of no consequence in MN. If you are not licensensed to perform electrical work it is illegal to do so EXCEPT for your own residence. In MN you are not even allowed to do electrical work on property you own unless it is your place of residence. In order to perform electrical work even as a journeyman or plant electrician you must be at the very least working under a master's license and management. If I'm wrong about this then I apologize but this is the understanding I have since the last time I looked at the laws.
 
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