Originally Posted by VachonElectric

FranklinsApprentice what type of flat rate program are you using?

Originally Posted by VachonElectric

FranklinsApprentice what type of flat rate program are you using?

Originally Posted by electrictim510

$11 box has little to do with the job. It takes time and is a permanent fixture in the home now. It is worth more than $189. If you nickel and dime yourself you may as well work for another contractor.

You will learn in time that you MUST charge a decent service fee whenever you possibly can. $59 is a pretty good one too. Not too high and not extremely cheap. Do you do free estimates on all calls? What happens when they don't want you to do the job? You lose! At least if you charged $59 you got gas and a little bit of overhead paid, and it would help sel the rest of the job.

Originally Posted by FranklinsApprentice

When my overhead goes up, I will have to charge more. But my flat rate program figures in 45 min plus the box and markup which comes out to $189. I have yet to have a customer complain.

I have not been brave enough to charge my service fee for an estimate. I'm too new, and I've gotten enough business to justify it. When they are only calling me from an ad or a referral, yes, I charge every time. Eventually when I get enough business, I will move to the $129 fee if they need us to come right out, $89 to schedule it that week, $59 to schedule it next week or beyond, and free when we can call when there is an opening, kind of like being on standby.

Originally Posted by VachonElectric

i understand i need to make money and thats why i on this site asking for advice but $189.00 for an $11.00 fan box just seems odd to me...and as far as the service call is that $59.00 for every job you go to.

I just get a call or and email from a leed service and then schedule to look at the job, once i look at the job and give an estimate. i will schedule it for a time in date. lets say i schedule the job do a charge the service call fee?

theres been some good info posted to my post and i thank you for all the help.

Originally Posted by FranklinsApprentice

Welcome to the forum.

No I charge $200 for the fan install. If there is already a fan rated box and all I have to do is unpack the fan, assemble it, and hang it.

Originally Posted by dronai

How much does Home Depot charge in your area ?

Originally Posted by yrman

That $11 fan box didnt just show up in the customers house and install itself in the ceiling. it was purchased by a licensed contractor who spent years learning the trade and the skills it takes to install it. If the customer could have bought it for $11 and installed it themselves they would have- right? Someone (you) had to get into your insured vehicle which requires gas and maintenance, take the time to purchase it or tie up your cash to stock it until needed, you have to be licensed, bonded and insured in order to legally install that box right? You have to drive to the customers home and use tools which must be purchased from money over and above your costs. That $11 fan box comes with delivery and installation by a skilled and licensed professional. When you really evaluate what the customer is actually getting, $189 is a bargin.

$59 is a token fee for you to get in your truck and show up at someones door for any reason. Your time is worth something. If they spend good money with you, you may choose to include the fee, but if they dont at least you arent running all over the place giving your time away for free. If you dont value your time, neither will anyone else. good luck with your new vemture. Welcome,, there is a wealth of information here.

Originally Posted by dronai

They post the prices in the store that their contractors or subs will install a fan

Originally Posted by WIElectric

The price HD advertises IS NOT the final price the customer pays.

Originally Posted by dronai

How much does H D charge in your area ?

Originally Posted by dronai

They post the prices in the store that their contractors or subs will install a fan

Originally Posted by yrman

That $11 fan box didnt just show up in the customers house and install itself in the ceiling. it was purchased by a licensed contractor who spent years learning the trade and the skills it takes to install it. If the customer could have bought it for $11 and installed it themselves they would have- right? Someone (you) had to get into your insured vehicle which requires gas and maintenance, take the time to purchase it or tie up your cash to stock it until needed, you have to be licensed, bonded and insured in order to legally install that box right? You have to drive to the customers home and use tools which must be purchased from money over and above your costs. That $11 fan box comes with delivery and installation by a skilled and licensed professional. When you really evaluate what the customer is actually getting, $189 is a bargin.

$59 is a token fee for you to get in your truck and show up at someones door for any reason. Your time is worth something. If they spend good money with you, you may choose to include the fee, but if they dont at least you arent running all over the place giving your time away for free. If you dont value your time, neither will anyone else. good luck with your new vemture. Welcome,, there is a wealth of information here.

Originally Posted by FranklinsApprentice

I have to disagree. When he calls for a "benchmark" He's gonna find all kinds of price structures. It will be mostly the blind leading the blind, because this is what most new guys do. And it doesn't matter what truck you drive. Your overhead matters. Like Harry said, you need to find the pricing calculators here on the forum for a residential service contractors, plug in your overhead, and your salary. As a business owner you should pay yourself $100,000/year when first starting out. Of course this will be hard in the beginning, but you still need to price your services as if you are paying yourself.

I use flat rate, but sometimes my program doesn't have something a customer asks of me. On friday a customer asks me to move a thermostat. Well my flat rate program says I need to charge 206/hr, so I figure it will take me 1.5 hours and I tell them it will be $300. They gladly accept, and even give me a tip when I'm done. And when I got home they had left a great review on my Facebook page. And no they were not rich. He is a pipe fitter, and she is a teacher.

People will pay you what you deserve and need, but we have too many "benchmark" contractors who are struggling and still think they are expensive that I have to compete against. If we all charged what we're suppose to charge I would have a 95% close rate. Right now its about 50%

Originally Posted by VachonElectric

I have been in business since Febuary, 90% residential. i am just barely keeping my head above water and would love to be able to run a succesful business. i am currently hooked up with networks and yodle out of the two networks seems to be paying for it self with the jobs i get from it. What i am looking is advice on what i can do to run a better business, weither its reading books or just talk to people here.
I use quickbooks for keeping track of everything and writing estimates. I think that i might be putting to much on my estimates because i include everything on it that i would use for the job. And i am not sure i am charging enough. I Charge $60.00/ hr for all my work which seems to be about the going rate in the NH are.
Any advice will be greatly appreciated and i hope that i can start to make progress in running my business.

Originally Posted by Boomer

By benchmarking I was referring to the three top EC's in the area, not the three cheapest. It was to help him get a better idea of what he's up against since he doesn't have the time in business yet to know where his estimates sit in respect to his competitors. As far as business appearance goes (ie:old pick up vs professionally marked service van) if both estimates came in at the same rate, 99% will go to the more professional looking company. Not saying its right and has nothing to do with experience, just a fact.

Originally Posted by VachonElectric

in the last month or so i traded in my truck with a cap for a new van and had lettered to look more professional. so i am sort of headed in the right direction just need to figure out the rest of it.