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company charges to much for a service #155232
12/19/04 09:41 AM
12/19/04 09:41 AM
N
nov  Offline OP
Member
Joined: Aug 2004
Posts: 69
New Jersey
I know that this has been discussed may times on here so I am sorry to bring it up again but I need some local pricing for installing a 200 or 100 amp service upgrade. The company that I work for is in NJ we service central and northern NJ. Our current prices for service upgrades are 3522.00 for a 200 and 2663.00 for a 100. I feel that these prices are a little high themselves but I can sell them for the most part. The company now wants to raise them to 4353.00 for 200 and 4256.00 for 100. I feel that these numbers are outragious and that they will price themselves right out of bussiness. You may be able to sell one or two a year but I do not see more than that happing. I would like some other prices from NJ if possible to bring to my owner for support in my argument. These prices are for a service using SEU cable the prices for 2" and 1 1/4" pipe are even higher. The installs include everything from the service head down: new service drop, new meter pan, new jumper, new 200 amp 40 circuit panel, new ground to cold water pipe, two ground rods installed, jumpers on the hot water heater and the water meter, and filing for the permit the home owner is still responsible for the permit fees. In NJ we do the tie in to the poco live and the poco does not rebug what we install stays for good PSE&G and JCP&L anyway. Any input would be appreciated.

Business, Office, Estimating, Legal:
Re: company charges to much for a service #155233
12/19/04 09:49 AM
12/19/04 09:49 AM
R
russ m  Offline
Member
Joined: Feb 2003
Posts: 169
Burbank,IL,USA
Those prices seem to be close to double to what contractors get around me. Whats in a typical one meter 100amp service 8 to 12 hours at most, (some can be a couple hours less) Three or four hundred dollars of material.

Re: company charges to much for a service #155234
12/19/04 11:58 AM
12/19/04 11:58 AM
C
cavo148  Offline
Member
Joined: Jan 2004
Posts: 79
New Jersey
nov, you want someone to help you lower your employer's prices so he'll be more competitive with their employer? [Linked Image] BTW, he sounds overly expensive to say the least, but then again maybe the rest of us are too cheap! Once in a while you have to appreciate someone who causes the prices to climb to a higher plateau, kind of a reality check if you will, so we can afford the better health insurances, retirements, etc. otherwise we eventually die, financially that is. If he can get that kind of money for the work you described, I'm sending him a big red 'n green Christmas card.

Re: company charges to much for a service #155235
12/19/04 12:01 PM
12/19/04 12:01 PM
P
PCBelarge  Offline
Member
Joined: Jun 2003
Posts: 681
Dobbs Ferry, NY, USA
My answer to that question is: the customer has the choice to say no. If they should choose to say yes, the price is not too excessive, it is their choice. I will bet that someone is charging less, so they have a choice. I always said that someone has to be the most expensive electrician, and I wanted to be him... although I never reached my aspiration [Linked Image]

Pierre


Pierre Belarge
Re: company charges to much for a service #155236
12/19/04 12:06 PM
12/19/04 12:06 PM
A
A-Line  Offline
Member
Joined: Jul 2004
Posts: 272
Utah, USA
Maybe if he raises his prices he will give you a raise also. [Linked Image]

Far better to be the most expensive than to be the cheapest.

[This message has been edited by A-Line (edited 12-19-2004).]

Re: company charges to much for a service #155237
12/19/04 12:28 PM
12/19/04 12:28 PM
A
A-Line  Offline
Member
Joined: Jul 2004
Posts: 272
Utah, USA
I was talking to a couple of electricians the other day and their employer told them that he may have to drop their health insurance because it was getting too expensive.
I think too often instead of raising our prices to cover increases in expenses we look for ways to cut costs.

Re: company charges to much for a service #155238
12/19/04 01:25 PM
12/19/04 01:25 PM
A
amp-man  Offline
Member
Joined: Jun 2001
Posts: 141
Sacto, California US of A
nov,

Can't help you with specifics for the job price in N.J., but let me put my two cents in about pricing anyway.

If a company provides extraordinary service, it can get extraordinary proces for the work. There will always be people who are willing to pay for prompt followup, courteous treatment, good communications, respect of their property, reliability, and excellent creaftsmanship. Most clients don't know much about electrical work, and if it works as expected, they're happy with the outcome. It's the other stuff that makes a client feel good about paying a premium price.

Rather than try to argue your boss's pricing down, you might try to understand why your company deserves to charge more, and start projecting that belief to clients.

I think it'd be no fun to operate an electrical contracting biz on a low profit margin (like a grocery store), where it takes high volume to make any money. Wouldn't anyone rather take the time to do high quality work (efficiently, of course), using quality materials?

I run the other way when I get the sense that the potential client is primarily driven by price. That sort of person is usually not happy with the work even if they get a low price--their expectations are set up by Wal-Mart. Thank goodness that our work can't be outsourced to India to someone who' making 35 cents an hour.

Cliff

Re: company charges to much for a service #155239
12/19/04 02:55 PM
12/19/04 02:55 PM
O
OreElect  Offline
Member
Joined: Mar 2004
Posts: 98
Salem,Oregon.USA
If we charged those kind of prices,that would include a 7 day all expense vacation with the new sevice.
Sounds like the owners got some toy or alimony payments.
Our labor rates @ 77 hour, average new 200 amp service is 1200 to 1400,which includes all materials and permit.

Re: company charges to much for a service #155240
12/19/04 04:44 PM
12/19/04 04:44 PM
A
A-Line  Offline
Member
Joined: Jul 2004
Posts: 272
Utah, USA
Don't forget the prices in nov's post also include replacing the loadcenter inside the residence with a new 200 amp. 40 circuit loadcenter along with the new 200 amp metermain located outside.
Also getting the ground to the water main can be difficult on a remodel.
No way could I do all that for $1400

[This message has been edited by A-Line (edited 12-19-2004).]

Re: company charges to much for a service #155241
12/19/04 05:06 PM
12/19/04 05:06 PM
M
macmikeman  Offline
Member
Joined: Jul 2002
Posts: 717
Honolulu, Hawaii
Reply to Amp man ; unfortunatly our type of work can be insourced to an illegal from another country for a lot less than what you are getting now.

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