I would not necessarily say it is only the new guy that needs to be educated.
When I started my business I decided to call other contractors in the phone book to find out what they were charging for work such as coming out and adding a receptacle in an existing residence.
The companies I called have all been in business at least 10 years. Most have been in business 20 years or more.
The results ranged from $35 per-hour to $55 per-hour. to come out and do this work.
I set my price at $40 per-hour. I figured if these guys have been in business for this long these rates must be legitimate.
I soon realized I was not making any money at this rate.
I was trying to figure out how too charge more but I was already getting some complaints from people for charging $40 per-hour.
Then I stumbled accross some information on flat rate pricing and deteriming you costs of doing business. I switched to flat rate pricing and doubled my hourly rate. The funny thing is although my hourly rate doubled I got fewer complaints.
I have sinced increased my hourly rate even more.
I think some of these contractors that have been in business for 10 years or more also haven't raised there rates in 10 years.
In 1982 I was working for a contractor on T&M jobs. His hourly rate was $35 per-hour.
I was shocked when I called these contractors in 1998 and some were still charging $35 per-hour. I saw some ads in the newspaper where they were advertising $29 per-hour.
I was expecting rates to be between $60 and $100 per-hour.
[This message has been edited by A-Line (edited 12-02-2005).]
[This message has been edited by A-Line (edited 12-02-2005).]
