ECN Electrical Forum - Discussion Forums for Electricians, Inspectors and Related Professionals
ECN Shout Chat
Top Posters(30 Days)
sparky 5
Recent Posts
Dimmable LED 2x4 lay in fixtures
by ghost307. 12/15/17 08:13 AM
2017 NEC Changes
by ghost307. 12/15/17 08:09 AM
Casino Wiring methods
by HotLine1. 12/09/17 10:44 AM
Ground wire Size to water Line.
by HotLine1. 12/05/17 12:11 PM
Flexible conduit to an outside Spa
by gfretwell. 12/05/17 12:28 AM
New in the Gallery:
Gallery Test
Popular Topics(Views)
243,061 Are you busy
179,499 Re: Forum
170,421 Need opinion
Who's Online Now
0 registered members (), 17 guests, and 8 spiders.
Key: Admin, Global Mod, Mod
Previous Thread
Next Thread
Print Thread
Rate This Thread
#157352 - 10/17/05 04:11 PM Materials Price Increases  
VinceR  Offline
Member
Joined: Apr 2005
Posts: 35
Edgewood, WA, USA
I Thought I would ask if anyone else has noticed a rather sharp increase in prices of wire and PVC in recent weeks. Our suppliers tell us that it is due to recent hurricanes. Supposedly the damage done to oil refineries is causing plastic feedstock prices to rise and there is a lot of extra buying by folks in anticipation of a lot of rebuilding along the Gulf coast. I guess it makes sense and I am sure my suppliers would not ever tell me anything but the complete and whole truth.
Thanks


Business, Office, Estimating, Legal:

#157353 - 10/17/05 04:53 PM Re: Materials Price Increases  
DYNAMITE  Offline
Member
Joined: Dec 2003
Posts: 36
Winkler, MB, Canada
I was told 30 percent increase in PVC


#157354 - 10/18/05 12:17 AM Re: Materials Price Increases  
macmikeman  Offline
Member
Joined: Jul 2002
Posts: 717
Honolulu, Hawaii
Buy high, sell higher. Make a profit. Simple. Now if you signed your contract a year ago, I am sorry for you. Mostly because you don't remember the last time copper did a big spike and lots of contractors got the hit in the wallet. I think it was about 1986 or 1987. Ever since then I have a price spike clause in any commercial contract I have done. Resi is a different story. Loose a little on the first house, make it back on the second. Keep smiling.


#157355 - 10/18/05 09:10 AM Re: Materials Price Increases  
LearJet9  Offline
Member
Joined: Apr 2005
Posts: 197
Millis, MA USA
What is the average (if there is one) mark-up? We hove some contracts that specify cost plus 25%. Otherwise we use keystone mark-up. I know the local union shops use contractor net +50%.


#157356 - 10/31/05 01:15 PM Re: Materials Price Increases  
VinceR  Offline
Member
Joined: Apr 2005
Posts: 35
Edgewood, WA, USA
Many thanks for the replys. Sounds like things are going up (again!!)


#157357 - 10/31/05 02:36 PM Re: Materials Price Increases  
bigventure  Offline
Member
Joined: Apr 2005
Posts: 39
ma. USA
25 or 50% material markup? We charge a minimum of a 200% markup for all material. We do service work only.


#157358 - 10/31/05 10:56 PM Re: Materials Price Increases  
macmikeman  Offline
Member
Joined: Jul 2002
Posts: 717
Honolulu, Hawaii
Bigventure, if you guys do only service work, charge 200 % markup, you should shoot for industrial service work. One or two huge xfmr jobs or a few dozen vfd's and you can just retire.


#157359 - 11/01/05 07:27 AM Re: Materials Price Increases  
bigventure  Offline
Member
Joined: Apr 2005
Posts: 39
ma. USA
We do residental work only. If we did industrial we would have to wait the obligatory 90 to 120 days for payment which eats 50-75% of your markup. Not a very good formula in my book.


#157360 - 11/01/05 09:47 AM Re: Materials Price Increases  
A-Line  Offline
Member
Joined: Jul 2004
Posts: 272
Utah, USA
bigventure,

I also concentrate on residential service work. I had been using a sliding scale multiplier for parts markup. The multiplier ranged from 6.00 to 1.33. Recently I came accross an article at the link below. It talks about only marking up material costs 15% because you include all of your overhead costs in your hourly rate. It says to simply divide your materials costs by .85 to acheive your 15% net profit on materials. What do you think of setting up your price books using the method described in this article. http://www.hvacprofitboosters.com/Tips/Tip_Archive/tip_archive16.html


#157361 - 11/01/05 10:54 AM Re: Materials Price Increases  
VinceR  Offline
Member
Joined: Apr 2005
Posts: 35
Edgewood, WA, USA
Interesting stuff, For the record, we mark things up 25% to home owners and 15% for contractors. We have average ratios for the amount of materials per hour of labor for each type of job. This allows us to calculate how much our labor rate needs to cover our overhead and hit our profit targets.

The article on pricing strategy for the HVAC business is interesting and I will think about applying some of his concepts. However, there is a maintenance component to HVAC that is lacking in the electrical service business.

VinceR



Member Spotlight
The_Lightman
The_Lightman
Orlando, Fl, USA
Posts: 49
Joined: August 2001
Show All Member Profiles 
Featured:

2017 Master Electrician Exam Preparation Combos
2017 NEC Electrician
Exam Prep Combos:
Master / Journeyman

 

Shout Box
Powered by UBB.threads™ PHP Forum Software 7.6.0
Page Time: 0.017s Queries: 14 (0.003s) Memory: 0.8100 MB (Peak: 0.9855 MB) Zlib enabled. Server Time: 2017-12-15 21:21:29 UTC