ECN Forum Forums General Topics of the Trade General Discussion Area Job Pricing

Another job tough to estimate is trenching. I need to run a 3/4 PVC trenched underground 140 ft between post lights at a townhome complex. Does anyone charge by the foot? Last one I did about the same legth I charged just under $700 and thats with a $200 trencher rental. I did not charge enough on that on.

LK You are confirming what I posted. What is the big secret. I feel posting prices here or comparing with other guys in the supply house is a good thing. With people regularly calling numerous contractors to get estimates I like to know what the going rates are. Keeps me from being lowest price or the highest price guy around. As for trenching, No thanks!

Scott, not my post. Checking other prices will never help you operate for profit. You must know your own overhead and expenses along with the area economy to bid for a profit. The other guy may be operating at a loss and you don't want to follow his pricing. The reason you don't see prices posted is the sucessful contractors are bidding based on their cost of doing business. That is the secret not pricing.


[This message has been edited by LK (edited 08-09-2003).]

[This message has been edited by LK (edited 08-09-2003).]

I was waiting for that one. You are correct with that. However, whatever you may come up with for what you feel should be your profit margin may be too high or low based on the average for your area. This is why you must know what the going rates are. The cost of doing bisiness in a geographic location is relatively the same for a comperable size contractor. Let's say contractors A, B, and C are getting say $75.00 per hour for a licensed guy and contractor D (maybe you) is only charging $65.00. Wouldn't you want that additonal $10 bucks every hour? I would. Simply put figure out what you need to make your business profitable and then charge as much as the market will bear. The only way to know what the market is, is to find out what others are charging. It has worked for me for ten years.

You should look at your operating costs to set your correct markup. Don't worry about the other guy, and forget margins, remember the net profit will keep you in good financial condition. Once you set your net profit, you can focus more time running the business rather then concerns of bill paying.
Yes you can always charge more but never less, so don,t waste time looking at the low bid. Don't sell price, selling price only brings in the difficult customers. The customers you want will know, they get what they pay for. I find spending more time selling myself and my business works well.
Scott, years ago I tried chasing price until my debt was way up there, and my wife was telling me to get a job.

Aldav53,
I am also an electrical contractor in the phoenix metro area. Mesa, AZ to be exact. I can usually make a profit if I charge $1,300.00 for a 200-amp panel up grade. That is if SRP and the city inspection pass the first time and get the meter put on that same day.

I have found that I am on the low side. I am currently putting up two 100-amp panel-meter combos side by side on a rental unit in phoenix. My proposal was at $2,300.00. So I have learned to charge a little more because that what the market can bear. My material so far is only at around $500.00. And my two guys spent eight hours each for a total out of pocket cost of $795.00. And I am charging $2,300.00 because I know I can.

Pretty Cool Ahe.