Len
Senior Member
- Location
- Bucks County
Where did all the work go????
Seems like the bottom dropped out again!
Anyone feel like this????
Seems like the bottom dropped out again!
Anyone feel like this????
Work
- Thread starter Len
- Start date
- Status
Ohmy
Senior Member
- Location
- Atlanta, GA
We are super busy here, but I think its going to be a rough winter.
mcclary's electrical
Senior Member
- Location
- VA
Nothing here either. We haven't had any thing really to talk about in the last two months. Every job we bid is going for below what we can do it for. The guy that its him, a helper, and a truck is the one thats going to make it trough these hard times. No overhead=low bids.
- Location
- Simi Valley, CA
We were doing 10 calls a day, sometimes more, per inspector, times 10 inspectors, now some days we don't have 1 call per inspector.
In 1999, at about this time, we had sold over 6000 permits. This year we are just shy of 1700.
In these times it was common to see the fly by night guys go away and the bigger guys stay in business. I talk to a lot of contractors and right now the bigger guys are really having a hard time just meeting expenses. Many can't even afford to roll a truck out just to hang a ceiling fan, but the guy who works out of his house will be glad to come by and do it.
Times are tough and I think it's still going to be a while before we see the end of this.
In 1999, at about this time, we had sold over 6000 permits. This year we are just shy of 1700.
In these times it was common to see the fly by night guys go away and the bigger guys stay in business. I talk to a lot of contractors and right now the bigger guys are really having a hard time just meeting expenses. Many can't even afford to roll a truck out just to hang a ceiling fan, but the guy who works out of his house will be glad to come by and do it.
Times are tough and I think it's still going to be a while before we see the end of this.
I would rephrase that to say; "The guy who thinks he has no overhead = low bids."
electricmanscott
Senior Member
- Location
- Boston, MA
peter d
Senior Member
- Location
- New England
I've been staying very busy lately - going on vacation, taking day trips, catching up on neglected household work, getting my vehicle taken care of, etc etc.
I would rephrase that to say; "The guy who thinks he has no overhead = low bids."
He is not thinking, there is the problem.
Correct. The guy who thinks he has no overhead will soon be out of business. The guy who actually has low overhead will survive.
peter d
Senior Member
- Location
- New England
Does any full time electrical contractor really have low overhead? Well, besides the guys like yourself who drive a 1986 Mazda pick-up held together with duct tape, eat mac and cheese for dinner and live in a one room shack.
Does any full time electrical contractor really have low overhead? Well, besides the guys like yourself who drive a 1986 Mazda pick-up held together with duct tape, eat mac and cheese for dinner and live in a one room shack.
Well, I don't think you can compare a full-time EC with a hack's overhead, but there are ways of lowering overhead. And it's the people who do so that are better able to make it through these hard times.
jaylectricity
Senior Member
- Location
- Massachusetts
- Occupation
- licensed journeyman electrician
The way that is worded makes me cringe.
It,s funny but we just went over all our expenses trying to cut where we could, with the business slow down, we were sure we could find a lot to cut back, what we did find is every one of our overhead accounts went up not down, Phone basic bill up 5% Bank Service charges up 7% Liability Insurance up 12% Comp Insurance up 17% Truck Insutance up 12% Payroll was cut back and all the payroll costs went up, heck even postage went up, Our utility bill is a wopping 47% increase, water is up 9% office supplies stayed even with fewer supplies, and advertising expenses went up 14% when we looked at our supply house pricing they were up on just about everything.
So the only choice we have is to raise our overhead so we don't sink the ship, the problem is when we do that, one of those guys that is not thinking, prices a job in the gutter, gets the job and not only looses an chance to make what he should, but takes down the few floating ships around him, this has been going on for many years, thru , many business cycles, and will continue for many years to come, as long a someone is willing to work for less then it costs them.
So the only choice we have is to raise our overhead so we don't sink the ship, the problem is when we do that, one of those guys that is not thinking, prices a job in the gutter, gets the job and not only looses an chance to make what he should, but takes down the few floating ships around him, this has been going on for many years, thru , many business cycles, and will continue for many years to come, as long a someone is willing to work for less then it costs them.
We have 3 electricians running out of our business. The other 2 do mostly commercial work. They have teamed up on there current job, have a second job ready to start mid next week, and I have bid on 3 jobs that should schedule out with them having a few catch up days. I do mostly residential, PV, light commercial, bid all there jobs, and do most of office work.
Our new residential market dropped off a lot, but our commercial has stayed steady. There?s a large multiyear union job that going on witch is keeping the union occupied and not going after everything else that pops up.
Our new residential market dropped off a lot, but our commercial has stayed steady. There?s a large multiyear union job that going on witch is keeping the union occupied and not going after everything else that pops up.
- Location
- Simi Valley, CA
Well, we call it Issuing a permit, but have you ever been issued a permit when you didn't hand them a check? If you buy a permit, then we sell permits.
jaylectricity
Senior Member
- Location
- Massachusetts
- Occupation
- licensed journeyman electrician
I understand, but if you're selling permits why don't you advertise? Drum up some business, ya know?
- Location
- Simi Valley, CA
Well to tell you the truth I've brought that up from time to time and I always get this deer in the headlight look. I've suggested several times that we do a weekly or monthly article in the local paper about things like changing the batteries in you smoke detctor and where detectors are required, the importance of GFCI's, the importance of permits and inspections, why you should hire qualified contractors, etc.
We actually set up a booth at the local street fair every year and visit the local elementary schools and set one up at the local emergency expo.
As for drumming up business, that's what our code compliance inspectors are for.
Ohmy
Senior Member
- Location
- Atlanta, GA
There is certainly companies with lower overhead than others. Think about a company that does new construction only. They have very low advertising compared to a service company, lots of their labor drives directly to the job and clocks in when they get there and out when they leave, they carry very little material, etc. etc. How about an electrician that just puts in flat screen TV's or just works on printing presses? There are lots of legitimate business models that have low overhead.
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