I have no idea where you are from, but commercial work offers profit margins that average from 12 to 17% on average, it also has the benifit of on going maintance, residential work load shifts with the area economy, and you need to worry about saturation in your market area, this occurs when larger marketing service companies enter an area and over price the market, this creates a boom and bust market.
Oh yes, i should run away from the commercial work, last year the profit from that work was a lousey 22% plus.
We have seen these large service companies in the past, most of them dry up, on the first market down turn.
[This message has been edited by LK (edited 09-01-2005).]
Re: Why not residential#157169 09/01/0507:33 PM09/01/0507:33 PM
I really don't understand where you are coming from.If you have a good company making good money in commercial...good for you and go for it. As a residential(90%) electrician,in a good company,well managed,since years our numbers point up.doubled and trippled the revenue in 5 years.
[This message has been edited by copperseller (edited 09-01-2005).]
Re: Why not residential#157170 09/01/0508:06 PM09/01/0508:06 PM
We do a wide variety of work. Some of our most profitable work is commercial/industrial. We recently completed a job reconfiguring the electric system in a 20,000 sq ft building to suit the new owner. After all materials, labor and overhead were accounted for we made 27% profit, pure profit.
That said, about 50% of our work is residential service and it is also very profitable. Many jobs are near 50% profit, others are closer to break even.
While I'm not going to join ESI, I do think it can be very good for our industry. I can't count the number of times I've read on this site how many of you wish there was an organization like PSI for our industry. It can't hurt. They are just trying to get us electricians to start making the same money our plumber and HVAC friends have been making for years. I'm all for it.
[This message has been edited by Electric Eagle (edited 09-01-2005).]