After 21 years the most important realizations for me were; my actual cost of business (figuring my overhead); that in residential service you only invoice for half of your time (2,000 hours/2 = 1,000 hours per year; my real job isn't as an electrician, it's as a salesperson. So, I added my overhead, divided it by 1,000, added a small profit and that became my hourly rate.
As is typical, this rate is higher than my old rate. To justify the new rate I called everyone in my client database & asked how I could improve my service. I also read what the top service contractors are doing. I also studied marketing.
As it turns out I was already doing most of it. I've always honored my warranties, been prompt, etc.
Anyway, my commercial is over. Charge what you have to, give top quality service, learn marketing and sales, and your average invoice may rise from $200 to $2,000.
Dave
