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Was My Price Too High?

15K views 63 replies 30 participants last post by  LibertyRising 
#1 ·
As title says, was my price too high? For background, I live in northeast USA. Was doing a small sun-room remodel when I had noticed the room was fed from a federal pacific stablok panel in the garage. This wasn't part of my scope and I told the home owner and GC I wouldn't be touching any wires unless I got the OK to do a sub-panel change/upgrade. It was a 30a sub panel. They also wanted new washer & dryer location in the sun room, which was conveniently on the opposite wall of said panel. Before I could even give them a price they had given me the green light as I had said it's a safety hazard and I've been reasonable in price with the GC previously. This panel is 90ft away from the main panel and is a difficult run through the basement and then up the wall and in the floor of the sun-room to the garage. So, I had told them what I was going to do. I ran a new 2/3 SER feeder 90ft to the location and installed a new 12 spot sub panel on a 80 amp breaker. Then, ran a new dryer circuit and washer circuit, installed on 30a and 20a breakers. Also connected the existing 5 circuits that had already been there. Told them the final price was $1,200, including materials and was told I was way too high. Meanwhile, I thought I was cutting them a deal and being reasonable. This is my first year out on my own. I know if this job was for my old company, it would have been a $1800 job easily. The GC justified it by saying he can get a panel swap for $1k. I told him a regular panel swap, sure. But this involved a lot more work.
 
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#50 ·
lmfao, ive been thinking about it for a few minutes.... and er,yeah actually i charged cheaper than that even, only about 525 in labour. $$. im still trying to figure out how that plumber justified his price...there wasnt that much work [one day maaaybe] and eve with two ppl, and double the price of materials.... i still cant figure out how he arrived at that high a price. ****, even if he charged 100bux and hour i still dont see it even for 2 ppl.
 
#57 ·
lmfao, ive been thinking about it for a few minutes.... and er,yeah actually i charged cheaper than that even, only about 525 in labour. $$. im still trying to figure out how that plumber justified his price...there wasnt that much work [one day maaaybe] and eve with two ppl, and double the price of materials.... i still cant figure out how he arrived at that high a price. ****, even if he charged 100bux and hour i still dont see it even for 2 ppl.
:vs_laugh::vs_laugh::vs_laugh::vs_laugh::vs_laugh:
 
#59 ·
Just to pay bare minimums at $12 per hour, no benefits, etc., basically laborer rates in N.C. is $35 per hour while making no money. Realistic rates are more like $50-60 an hour for an apprentice rate on big jobs or steady work. Troubleshooting/emergency rates these days are $90 an hour or more. Engineers typically charge $130-180. Typical rates for high end techs like vibration are $200-250 per hour. Out of town techs like drive technicians are 300-400 per hour plus travel expenses. Lawyers are around 300 an hour in court maybe half that office rates.

So $100 an hour depending on the work sounds very reasonable.
 
#60 ·
Just to pay bare minimums at $12 per hour, no benefits, etc., basically laborer rates in N.C. is $35 per hour while making no money. Realistic rates are more like $50-60 an hour for an apprentice rate on big jobs or steady work. Troubleshooting/emergency rates these days are $90 an hour or more. Engineers typically charge $130-180. Typical rates for high end techs like vibration are $200-250 per hour. Out of town techs like drive technicians are 300-400 per hour plus travel expenses. Lawyers are around 300 an hour in court maybe half that office rates.

So $100 an hour depending on the work sounds very reasonable.
:vs_laugh::vs_laugh::vs_laugh::vs_laugh::vs_laugh:
 
#61 · (Edited)
heh, yeah i i should stop drinking..etc and txtn/replying while drnkn etc. one of the many reasons i quite facebook a few years ago etc,. lmfao,.



However, i'm not quite sure how else to put that experience into words of 'two days' of work that the plumber did. i was there when the floor was 'open', and i saw what and how much work was needed, but couldnt understand the 5k price tag. i aint a plumber but couldve given a name of at least 2 ppl that wouldve charged around 4-600 hundred for the same job.


it was a 4 hour job at most. and it seems that you all are jealous it wasnt your job as a plumber/electrician.



the point is, if anything [ i wasnt there, and neither was the GC] when the plumber did his thing for 2days. ffs, am i b/tching about a plumbers hours and work? nvm.[period]
 
#62 ·
Been MIA from this forum but have been lurking lately and forgot about this post. For an update, I got paid in full of what I was asking and yes I shorted myself with my pricing (I realize now). This same GC had texted me 2 weeks after job completion asking to wire in electric baseboards. Told him sorry I'm busy and never heard from him since, but have seen pictures off his job sites and his current electrician runs wires like he's blind.

I finished 2019 off strong and had a good start to 2020 in Jan-Feb. Virus struck, and I sat mostly idle from march until mid july (give or take a few small calls). I've since picked up and have been working 50+ hour weeks for the past 2 months and I'm booked through mid october. I'm not rusty work wise, but I feel as if I once again and pricing myself too cheap on remodel jobs after sitting around for a few months and just wanting to make money. I'm pricing new work jobs thinking in my head basing off T&M and I know I'm making money but not much. How do you price new work/remodel? Do you price off per opening? per outlet, LED wafer, circuit, dimmer, fan etc?
 
#63 ·
Hey Tommy,
Congratulation on starting your business and thanks for starting this post. There’s been a lot of good points made. I’m planning to start my business after the first of the year in the meantime I’ve been working on the business plan and structure. I had a very good meeting with my accountant to discuss business structure and how they can help me stay on track. My business will focus on residential and light commercial service work. With this type of work, I’m leaning more toward flat rate pricing but expecting the need to do T&M on occasion.

I think one of the most important thing one should know before pricing a job or starting a business is their breakeven point. If we don’t know the breakeven point, then failure is just a matter of time.
The breakeven point includes business overhead and personal overhead. In other words what does it cost to keep the doors open and what does it cost to keep the wife happy.

Example: If my breakeven point for the business and personal life is $5000.00 per month.
How much do I need to make per day? $5000/20 working days = $250.00 per day
If I had 3 service calls every day, I would need to make $250.00/3 = $83.33 per service call to achieve my breakeven point.
Hourly rate would be based on 4 hours per day (a suggestion from another EL post) would be
$250.00/4 = 62.50 per hour.

That’s not including materials it’s just what one would have to charge just to breakeven month after month.

But I want to do better than breakeven
If want to gross $10,000.00 per month
$10,000/20 = $500 per day
3 service call per day $500/3 = $167.00 per service call
Hourly rate 500/4 = $125.00 per hour
$10,000 – $5,000 Breakeven point = $5000.00 over breakeven

I haven’t got all figured out but trying to have a good plan in place of how I’m going to do business before I start.

Y’all correct me if I’m wrong on this because I’m just learning, and these are my thoughts and things gathered from around the web.

Tommy I know your question wasn’t about service work, but this example might give you some ideas moving forward, it’s good to kick things around

Good Luck
tmurray
 
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