ECN Forum Forums General Topics of the Trade General Discussion Area How much would you charge for these services?

ed,

i agree and disagree with all the answers above. :-)

1st- have you ever done a break even calculation? if not, do it today. do it before you even think about going out and doing more work. postpone/cancel your jobs for today and do.

A-Line has a great list of overhead items. I don't know if it is posted on this board or a different one, but get that list.

Determine all your costs currently (insurance, advertising, vacation, a-z) and don't forget you salary.

this will determine your hourly break even cost. then add the profit you want and you now have an hourly rate. if you are doing service, figure 50% productivity. If you are doing projects, figure 80% productivity (since you are working by yourself, it's impossible to be 100% productive)

let us know what you come up with.

2- DO NOT, I REPEAT DO NOT, base your prices on what the going rate is. What are their costs of doing business? Have they done a breakeven? Are they losing money every call? Do they have new or old equipment? What are their costs for advertising, insurance, health benefits, etc?

Their business and yours are two different entities.

Determine your costs, then figure what you need to do earn that money.

good luck

Edman - First, are you a licensed EC? Are you doing this 'on the side.' You want to spread the word? At $200 you would be better off doing it for free, that's even better advertising. You guys are the ones real EC's complain about constantly. Handymen don't have the same O/H, insurance, or licensing costs as the rest of us.

If this is old work, crawling through attics, fishing wires down walls etc. My price would be $850. How long did it take you to complete this job? Did you pull a permit for the work?

[This message has been edited by A-Line (edited 01-11-2006).]

Starting a business? You should read the article below.
http://www.pmmag.com/CDA/Archives/12862c49e3fc7010VgnVCM100000f932a8c0____

I came up with $225 thats at $50 an hour. Thats a cheap side job rate, not including material.

A company would need to charge a minimum of $450

I take it he has no workmans comp, what if he falls, and becomes injured, that home owner, may end up paying everything they own, not just $225, or does he have liability insurance, the home burns, and someone is injured or worse, with the new permit fees this year, the permit for this job could be $50 or more, and will the homeowners insurance pay, if no permit was issued? we see this over, and over again, where someone looks at the job, and assumes the cost of doing a job is all profit, take your time, and find out what it will cost you to do this job, with all necessary costs included, part time work, or just starting out is fine, but you will still need to follow the rules, obtain coverages, and know all your expenses, most small one, or two man electrical contractors, have more then $225 to pay each day to cover overhead and operating expenses, before they start working.




[This message has been edited by LK (edited 01-11-2006).]

The variations expressed above show why I can give, at best, a wide price range. A serious price requires an on-site visit.

Let me explain my earlier post better...

Base your price on a factor from that, This will give you an idea of the market highs and lows, a basic range that will keep you competitive in pricing.

against your operating costs,
I saved that list I think A-line put up on another thread in a word doc., List a cost for everything. http://www.markhellerelectric.com/overheadlist.doc

and what you feel you're worth. By all means, DO NOT UNDER-CUT YOURSELF!
You need to pay yourself, and the biz need to profit, if not, walk away from it. Let someone else do it for free.

(Sorry, just some of my own personal baggage...)
I got my C-10, and Biz lic. a few months before the dot-com crash, 20,000 U-hauls left town over the next few months afterwards. Complete market flip, and an edjucation on why the advice we're all giving is nessesary. No worries though, I am currently gainfully EMPLOYED!

e57,

Well said, i think we all had those scary times, when the times changed.