ECN Forum Forums General Topics of the Trade Business Related Discussion ESI flatrate

I do not want to lock this thread like i have had to do to other ESI threads
WARNING # 2 and yeah last one.

I don't understand why everyone gets on ESI. They are just another company. Like evrey other company they are out to make a buck. Some who have joined have made it well other have not ( see Responsive Electric in Mass.) We all have to take notice and compete with them just like Starbucks does with Dunkin Donuts.

I would imagine that those joining ESI know full well what they are paying for. For me, I was not educated in business, so this is a helping hand.

How many people have written a business plan from scratch. I mean really from scratch without using a model or template of some sort. ESI along with other groups like it are a template of sorts, for those who need or desire it. Sure you can get business plan template online for free or low cost, but you can also get more detailed templates for a higher cost.

ESI...great for some, not for others, but there is no need to bash them for helping and making money at the same time. Groups like this are slowly starting to educate us loveable dolts.

sounds like something i would say, but not ringing a bell. must've been a really good comment

As for service pricing- Just did a 100A service change. Emergency. Neighbor cut down a tree limb, took out a POCO line and caused 5 neighbors to have their service burn up.

We installed a new PVC and copper riser, meter pan, 100A sq d QO panel (house did not in any way shape or form warrant an upgrade. they will never use what they have)new grounding etc.

Here is what the job took.

estimate - 1.5 hrs
job - 2 men 10 hour day
meet with inspector, poco and get power turned on, phone calls, general admin - 5 hrs

These are real numbers that include travel, parts, men's breaks, etc.

So we have a total of 26.5 man hours. Our target is $1000 day (or $125/hr for an 8 hr day)

So do the math here 26.5 x $125 = $3321.00 not including material.

Total material was about $350.

We charged $3500 for the service. Is that too much?

That 26.5 hrs was a little higher than normal due to this particular town and power companies procedures, be we average 23 man hours per service when everything is added up.

My view on this is, ESI provides a service, you may want to think of them as the business school for electricians, they provide proven marketing methods, and other business support services, for good electricians that know their trade, but lack the business building know how, this may be the best option, for someone that wants to grow.

An electrician may be tired of working 14 to 16 hours a day 6 or 7 days a week, at medium wages, with no benifits, and nothing put away for retirement, working just to stay in business, for this type of electrician, a support company may be the answer, it may not be for everyone.

On the amount a service type business charges, you can bet the largest number of them are not gouging anyone, their overhead and operating expenses are higher then a scheduled job shop.




[This message has been edited by LK (edited 11-20-2006).]

Can I get a breakdown mahlere? Actually, I really appreciate the breakdown. I spend two days on a service, and the first day is usually a long one. Many services here have conduit which need to be rerouted/replaced into the new panel. With BX I run the short ones into J box(es) and pipe into the new panel. Sometimes I run everything through conduit. I never reuse old grounding...it all takes time. Those look like good numbers from someone that keeps good records. Thanks.

Dave

oh, i'm broken down alright....

Now that is what I was asking for!!. This makes perfect sense now. Just as I was asking, at least for some, it the man hours affecting the price. A service here is a one man one day job. Total-start to finish, no need to meet the inspector, the homeowner can let him in. With that amount of hours, $5k is perfectly reasonable. If you were to re-read my posts, this is what I was trying to clarify-the difference between the amount of work here, and in other places. That does "justify" the cost.

glad to be of service. just don't discount the once in a lifetime factor.

also, i have said on occasion to get all your customers money, so I believe I was quoted in an earlier post (out of context I might add)

What I mean when I say it is this...

That customer has a job, they will get another paycheck next week from that job. I will not get a paycheck unless I convince that customer to give me money. I firmly believe that in residential service you have to look for everything that customer legitimately needs and bring it to their attention. If you don't you are doing them a tremendous disservice (how would you like the oil change guy who didn't tell you that your break line was cut?)

You need to find ways to get their money into your pocket. Not by raping them for 1 job, but by finding 5 more while you are there that they need done.

Don't fool yourself, once you go into business, you are no longer an electrician, you are a salesman. whether you like it or not.

"I firmly believe that in residential service you have to look for everything that customer legitimately needs and bring it to their attention. If you don't you are doing them a tremendous disservice (how would you like the oil change guy who didn't tell you that your break line was cut?)"

This is where the difference is, when i bring my truck in for repair, i want the mechanic to bring my attention to needed repairs, i don't want to be stuck on a country road at 2:00AM with no one around, as it turn out i found a good repair shop, and he happens to charge the highest price in town, and has to turn work away, there are 5 other shops in town, all looking for work, their prices are low, and so is the service they give, no one forces customers to go there, they just know he takes care of his customers, he provides good service, and has good mechanics, because he can train them, and pay them a living wage with benifits.

You can't run an efficent business without increased overhead, anyone looking at price only, and not what they will receive for it, is sure to come out on the loosing end.