ECN Forum Forums General Topics of the Trade Business Related Discussion ESI flatrate

When I imagine 30 service electricians out in trucks bidding work, I feel a physical shudder run up my spine, as my peripheral vision starts to blur, then I grip my wallet very tightly and take a moment to calm down…

If the book works for you then wax on, I am not knocking how you run your business. However having done this for a while there are a few mistakes I will not repeat, number one of which is NEVER discuss estimates, pricing or billing with your electricians. That practice is how our 3 largest competitors got started in the business, and has cost us a few really good men. My service crew is strictly T&M, and any small bids are done through the office. There aint nothing scientific about estimating.

It is interesting hearing how you do it though.


[This message has been edited by ITO (edited 12-06-2006).]

ITO,

I have yet to figure out how to get one man in a truck to generate $1000+ before materials/day with T&M. (Not counting emergencies or overtime)

The tech earns roughly 25% (total cost to me with burden is about 35%). So he gives me 8 hrs, actually works for 4+/- and earns $1000-1500/week in the pocket. Plus benes, truck, etc.

When we were a union shop, we operated just like you. But we did very little service work. Only for a few customers. They would pay us 4 hr mins (because we installed the equipment and it was cheaper to pay us than to try to get someone new to understand the systems)

But most of our work on installs was T&M as well. warehouses at T&M, it was a different time. So we made money when the guys put things in wrong and we made money when they redid them.

The big difference was we got paid for every hour that the man was paid. With service work, we have too much downtime. With residential service work, we have too many people who don't understand why they have to pay us for 2 hrs when we were only there for "20 minutes". So flat rate alleviates those issues on the resi side. Plus, I end up with a higher hourly rate than I would ever get on T&M...

Sound like it works well for you.