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Old 12-10-2009, 09:00 PM   #1
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Default Service call fees & etc.

Not trying to get into anyones business.....but just looking for some ball park numbers on what you charge for service calls & etc. I have been in business for 5 yrs and have never had so many people asking me this when they call as I have now. I use to get a question or project presented to me then they would ask how much? Now it is the other way around. I know that some electricians local are charging dirt cheap rates. I will say that with a typical service call I will charge $75-85.00/hr. and these will take less than 2 hrs. Anything more I will charge for the job. Just curious....I'm in South Carolina as I know that rates vary across the U.S.

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Old 12-10-2009, 09:16 PM   #2
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You are right in the ballpark but I think $75/hr per man, 2hr minimum is the lowest I would go and there are guys actually cheaper than that here in NJ, which blows my mind up. For the record I am not a service based contractor so I am sure there is more to the numbers game if that sector is all you focus on. For instance I know some National Maintenance companies have DNE's set at $60/HR, I've been told they will adjust if you provide details on why the job will cost more but I know nothing beyond that.


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Old 12-10-2009, 09:21 PM   #3
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I charge $69 to diagnose the problem on residential calls. No time limit for diagnosis. Once I find the problem, I have a flat rate price list is use to price the fix. Customer pre-approves the price before I start and everyone is happy.
If I'm quick, I average $125 per hour for residential service calls.

Commercial work I charge $70 per hour.
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Old 12-10-2009, 09:21 PM   #4
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Not to be snippy, but...
with five years of records you should have a real clear idea of what YOUR operating costs have been, what they can be projected to be and what YOU need to be charging (per hour or per day or per transaction etc) in order to make it all worth your while.

Do you have your records in a format you can pluck those numbers from?
If not, then this is where you should be focusing.
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Old 12-10-2009, 09:51 PM   #5
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What you need to be charging for your buisness to opperate and make a proffit is very important , but I know South Carolina guys are working cheap for the most part. Youve got to find that happy number, that will not get crushed by everyone around you, but is also what you need to make.
Mr sparkle has a rate like mine for the most part.
Good Luck
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Old 12-10-2009, 10:48 PM   #6
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BryanMD-
I do know about what it cost...I was more or less trying to make sure what I'm charging reflects the current economic situation. I won't mess with anything if I can't make any $ but then again I don't want to be outrageous.

Thanks guys-
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Old 12-11-2009, 08:18 AM   #7
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What is your target profit %? Minimum.
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Old 12-11-2009, 11:33 AM   #8
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Around here most contractors charge anywhere from 65-80 an hour with a 3 hour minimum.
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Old 12-11-2009, 01:30 PM   #9
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Quote:
Originally Posted by FES View Post
I don't want to be outrageous.
I don't think you have to be worried about being outrageous.
I have yet to run into an electrical contractor who's prices are outrageous.

We're all a bunch of cheap bastards.

The customer thinks we're all outrageous.
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Old 12-11-2009, 05:46 PM   #10
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Quote:
Originally Posted by caveman View Post
I don't think you have to be worried about being outrageous.
I have yet to run into an electrical contractor who's prices are outrageous.

We're all a bunch of cheap bastards.

The customer thinks we're all outrageous.
speak for yourself, I charge a fair rate for a good job and make a decent living.

4 hour minimum, hourly varies depending on the type of technician that responds,
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Old 12-11-2009, 06:03 PM   #11
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$75/hr, 2 hr minimum sounds good to me, if you are a one man show; I know for the big fellas it will be higher. Like McCaa, I might charge a service call fee to diagnose a problem and then give a price to fix it once it is found. Not a fan of flat rate but I'm still learning the whole "running a business" thing so things might change in the coming year. And to respond to Caveman, I have to agree, not too many EC's strike me as outrageous, except maybe Mr. Sparky, and customers do think we are expensive as all hell.
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Old 12-11-2009, 06:52 PM   #12
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I personally cant do it but I have heard of people just calling there competition and asking them. Kind of a ****ty way imo.
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Old 12-11-2009, 06:57 PM   #13
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I personally cant do it but I have heard of people just calling there competition and asking them. Kind of a ****ty way imo.
Why?
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Old 12-11-2009, 07:04 PM   #14
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Because if I call a competitor of mine im going to tell him the truth im not going to lie to him like im a customer. I just think its shaddy.
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Old 12-11-2009, 07:27 PM   #15
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Because if I call a competitor of mine im going to tell him the truth im not going to lie to him like im a customer. I just think its shaddy.
It can be used to low ball other guys by hacks and such.
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Old 12-12-2009, 03:40 AM   #16
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Default Service Call Pricing

My company charges $64 for the first 1/2 hour, and then $44 for each additional 1/2 hour for service calls. We also have a company-developed price book which we use for everything that we don't have to troubleshoot.

We tell our customers that if something that already exists is not working, then we will need to troubleshoot the problem at a T&M rate, and that this will usually be completed within an hour. Using these pricing techniques, we close about 85% of all callers on the T&M work.

If a customer wants new work done, then we can almost always give them an close estimate of the cost of this work over the phone using our price book. If a customer agrees with the price over the phone, we send out a Tech with a 95%+ success of doing the work (and often there is more work added by the customer after the original work is done).
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Old 12-12-2009, 10:43 AM   #17
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Quote:
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I personally cant do it but I have heard of people just calling there competition and asking them. Kind of a ****ty way imo.
This is Business 101. Believe me people are doing it to you.

Not that it is a great example but look at the whole Amazon/Wal-Mart price war thing, or any major Supermarket chain....they all blatantly state competitors prices in their ads. The good thing is we are in the type of business where you are open to sell yourself on much more than price alone, hopefully.

Oh, and you guys have a great disc golf course up there in Orange County, the name escapes me at the moment but I played it last summer and it was beautiful.
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Old 12-12-2009, 09:37 PM   #18
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Well I got a good discussion going!!! Thanks to all the replys.
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Old 12-12-2009, 09:47 PM   #19
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welcome to the forum, this is a great place, quite honestly, despite all the smart allecks.
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Old 12-12-2009, 10:09 PM   #20
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Quote:
Originally Posted by Mr. Sparkle View Post
This is Business 101. Believe me people are doing it to you.

Not that it is a great example but look at the whole Amazon/Wal-Mart price war thing, or any major Supermarket chain....they all blatantly state competitors prices in their ads. The good thing is we are in the type of business where you are open to sell yourself on much more than price alone, hopefully.............
Not only that, but I'll be willing to bet places like Lowe's is always checking the prices at Home Depot, and the nice folks at Home Depot are checking on the prices at Lowe's. WalMart keeps an eye on KMarts' prices, and KMart keeps an eye on WalMarts prices.........

Many many moons ago when I worked retail for a living, that was something we did on a regular basis when things were slow. Get on the phone and call the 'competition' and ask for some prices..... it was 'make work', but it was done all the time.

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