I’ve only been in business for going on three years and have a lot to learn about the business end.
I have read every post on this forum about pricing all the way back through the pages trying to form an opinion.
I’m trying to do mostly service work and commercial new construction.
I shy from residential new construction because its to competitive, I don’t like having to work so fast to keep up and make money (I’m a one man shop), and I don’t get to use skills that I have worked hard to acquire. Troubleshooting, running conduit, pulling wire ect.
Anyway, back to pricing.
I see people talk about high-ballers and low-ballers.
It seems that high-ballers charge what the market will bear.
It also seems that high-ballers think that the low-ballers are hurting the trade and themselves. Which I agree on.
I seems that myself and some of the other forum members could be considered mid-ballers or fair-ballers.
Not to be confused with low-ballers.
And not to say that top dollar isn’t fair, if you can get it more power to you. It makes the rest of us look even better.
The high-ballers are easy to spot. And I see nothing wrong with charging what the market will bear. I believe that a 200 amp upgrade is worth more than most of us charge but maybe not quite as much as some of us charge.
I believe that a service upgrade is different than your average call.
More responsibility and more at stake. And we should get paid accordingly.
In my neck of the woods it would be real easy to price yourself out of business.
And also many jobs I do are for people who don’t have a lot of money.
And the ones that do have money are cheaper than the poor people are.
If you told someone around here $4000 dollars for a service change, they would probably sic there dog on you (just kidding).
The last three calls for 200 amp upgrades I quoted $1200.
Two never called back and one hung up on me.
I am courteous, and well known for doing quality work.
I work T&M generally $45/hr resi. And 50 to 70 for commercial service work.
Another contractor told me he was charging $1200 for 200 amp upgrades so I figured I would try it. It has not worked yet but that’s my price and I’m sticking to it or I won’t be doing any more upgrades.
Just the responsibility is worth that.
My price may go up even more because I don’t like to do service changes anyway. For 4 grand I will do the upgrade and mow your yard for the next 2 years.
Anyone who says you can charge top dollar and still get plenty of work has never worked in a town like this.
About flat rate
My auto mechanic uses this method.
Works great for him and me because there are not that many variables.
For me in my business it’s to much of a gamble. Like playing poker, you win some you loose some. But we all no how poker is and I can’t afford a very long loosing streak. And if you set the prices high enough to come out a winner, the customer where everything goes right gets a raw deal and the guy that’s job causes you all the headaches gets a great deal. What’s fair about that?
On Bidding
No ones fault but my own. I’m a terrible bidder.
I either price myself out of a job or loose my rump.
My ultimate goal is learning to bid but I am not willing to risk bankruptcy just yet considering my lack of skill.
I have given one GC rough estimates on two different jobs with the understanding that they were only estimates and that I only worked T&M.
When the jobs were done both came out almost exactly double what I estimated. I did my best on the estimate and tried to include every mile every part and every hour. Some of the differences were extras but not all.
He paid me without a complaint, I suppose because he liked my work and knew I did my best.
Back to T&M
With time and material every one is a winner.
If I’m honest (which I am).
Most people know me and trust me or someone who was happy with my work has referred me.
Bottom Line is, if I know my cost and can get an honest rate/hr the only variable left is billable hours per year, which I don’t think anyone can accurately predict.
If I keep my hours up I can stay afloat.
