New business, back to the forum - Electrician Talk - Professional Electrical Contractors Forum
CLICK HERE AND JOIN OUR COMMUNITY TODAY, IT'S FREE!
Go Back   Electrician Talk - Professional Electrical Contractors Forum > Business > Business, Marketing, and Sales


Like Tree15Likes
  • 6 Post By Anathera
  • 3 Post By Switched
  • 1 Post By Switched
  • 1 Post By Switched
  • 1 Post By Switched
  • 3 Post By flyboy
Reply
 
Thread Tools Display Modes
Old 03-27-2018, 08:19 PM   #1
Senior Member
 
Join Date: Feb 2016
Location: North Carolina
Posts: 795
Rewards Points: 386
Default New business, back to the forum

Well on the advice from this forum back when I was an active poster I left my first electrical job ($12.50 per hr) as a crew leader for a campus electrical crew for a private electrical contractor. After a year and a half of that drama i jumped ship and started my own company. Two of his customers chose to continue to work with me rather than him but I didn't solicitate their business just told them I was leaving (i was actively working their site) of course he threatened law suits etc but with no non-compete in place he could do nothing. So I'm out on my own now and hopefully will be back to ET in the thousand of hours of free time i will have as a self employed electrician. Wanted to thank you guys for getting me to move from the first job, which that advice also left me unsatisfied with the second. Self employed is working out much better so far.
Anathera is offline   Reply With Quote
The Following User Says Thank You to Anathera For This Useful Post:
Wiresmith (12-07-2018)
Join Contractor Talk

Join the #1 Electrician Forum Today - It's Totally Free!

ElectricianTalk.com - Are you a Professional Electrical Contractor? If so we invite you to join our community and see what it has to offer. Our site is specifically designed for you and it's the leading place for electricians to meet online. No homeowners asking DIY questions. Just fellow tradesmen who enjoy talking about their business, their trade, and anything else that comes up. No matter what your specialty is you'll find that ElectricianTalk.com is a great community to join. Best of all it's totally free!

Join ElectricianTalk.com - Click Here JOIN FOR FREE


Warning: The topics covered on this site include activities in which there exists the potential for serious injury or death. ElectricianTalk.com DOES NOT guarantee the accuracy or completeness of any information contained on this site. Always use proper safety precaution and reference reliable outside sources before attempting any construction or remodeling task!

Sponsored Links
Advertisement
 
Old 03-27-2018, 08:26 PM   #2
Old Grumpy Bastard
 
MechanicalDVR's Avatar
 
Join Date: Dec 2007
Location: "Old Dominion"
Posts: 59,766
Rewards Points: 1,944
Default

Welcome!

Glad to see you back and 'gainfully' employed!
__________________
I'm as Christian as possible in the times we live in.

Always just a stallion in a china shop
MechanicalDVR is online now   Reply With Quote
Old 03-27-2018, 08:36 PM   #3
Senior Member
 
Join Date: Feb 2016
Location: North Carolina
Posts: 795
Rewards Points: 386
Default

private company paid somewhat better but it wasn't worth putting up with the personality
Anathera is offline   Reply With Quote
Sponsored Links
Advertisement
 
Old 03-27-2018, 08:39 PM   #4
Old Grumpy Bastard
 
MechanicalDVR's Avatar
 
Join Date: Dec 2007
Location: "Old Dominion"
Posts: 59,766
Rewards Points: 1,944
Default

Quote:
Originally Posted by Anathera View Post
private company paid somewhat better but it wasn't worth putting up with the personality
I'm sure!
__________________
I'm as Christian as possible in the times we live in.

Always just a stallion in a china shop
MechanicalDVR is online now   Reply With Quote
Old 03-27-2018, 10:53 PM   #5
Senior Member
 
Join Date: Mar 2010
Location: NH
Posts: 752
Rewards Points: 1,443
Default

Quote:
Originally Posted by Anathera View Post
the thousand of hours of free time i will have as a self employed electrician.

Where do you find that? I've been looking for that for a long time and all I can seem to find is 100+ hour work weeks The money is much MUCH better
JoeSparky is offline   Reply With Quote
Old 03-27-2018, 10:57 PM   #6
Senior Member
 
Join Date: Feb 2016
Location: North Carolina
Posts: 795
Rewards Points: 386
Default

Well Joe mostly in the hours of hallucinating i spend between work hours (can't really call it sleeping lol) I haven't even started advertising yet and I have more work than I can keep up with. I brought a helper on 4 days a week and have two guys doing evening calls. My wife works evenings and weekends so I'm on dad duty then which means my actual working hours stay around 50 hours but a large chunk of my hometime is the paperwork which i haven't really even begun to count as part of my work week
Anathera is offline   Reply With Quote
Old 03-27-2018, 11:21 PM   #7
Senior Member
 
Bird dog's Avatar
 
Join Date: Oct 2015
Location: South East US
Posts: 5,184
Rewards Points: 134
Default

Quote:
Originally Posted by Anathera View Post
Well Joe mostly in the hours of hallucinating i spend between work hours (can't really call it sleeping lol) I haven't even started advertising yet and I have more work than I can keep up with. I brought a helper on 4 days a week and have two guys doing evening calls. My wife works evenings and weekends so I'm on dad duty then which means my actual working hours stay around 50 hours but a large chunk of my hometime is the paperwork which i haven't really even begun to count as part of my work week
You need to keep up with your hours lest you work for minimum wage.
__________________
Popcorn munching forum observer
"The supreme art of war is to subdue the enemy without fighting." Sun Tzu
Bird dog is online now   Reply With Quote
Old 03-28-2018, 12:14 AM   #8
Senior Member
 
Switched's Avatar
 
Join Date: Dec 2012
Location: California
Posts: 6,129
Rewards Points: 8,986
Default

Who cares if your busy.

Who cares if you sell $40 million.

What did you pay yourself?

What was the business profit?

Did you provide yourself and your employees with high wages, health benefits, retirement, vacation, profit sharing.... ?

Do you have a sizable savings account to accommodate the slow times building?

Sales and being busy is ****, what goes into the bank and stays there, that is the true measure of a business.

If everyone and there uncle is busy beyond belief, then everyone and their uncle better be ponying up to the employees, and to themselves.

RAISE THE RATES

Rant over.....
chicken steve, flyboy and ibewmatt like this.
Switched is online now   Reply With Quote
Old 03-28-2018, 12:16 AM   #9
Senior Member
 
Switched's Avatar
 
Join Date: Dec 2012
Location: California
Posts: 6,129
Rewards Points: 8,986
Default

BTW.. @Anathera that wasn't directed as a personal comment, just one in general to business owners.
flyboy likes this.
Switched is online now   Reply With Quote
Old 03-28-2018, 12:45 AM   #10
Senior Member
 
Join Date: Feb 2016
Location: North Carolina
Posts: 795
Rewards Points: 386
Default

Yeah I just raised my rates another $10 I am fairly sure that I'm still under the competition but I feel I'm paying well so far. It's hard to gauge only being 2 months in but so far I've made all my bills
Anathera is offline   Reply With Quote
Old 03-28-2018, 01:23 AM   #11
Senior Member
 
Switched's Avatar
 
Join Date: Dec 2012
Location: California
Posts: 6,129
Rewards Points: 8,986
Default

Quote:
Originally Posted by Anathera View Post
Yeah I just raised my rates another $10 I am fairly sure that I'm still under the competition but I feel I'm paying well so far. It's hard to gauge only being 2 months in but so far I've made all my bills
What are your rates based upon though?

You raised them $10, was that too much? Was it too little? How do you know?

When you say "I'm still under the competition" what do you mean?

I agree that only being 2 months in your going to have large adjustments to make, and asking questions about whether what you are doing is right or wrong is a good move.

We are all students of the game, none of us have mastered it. Even the likes of very successful guys like Flyboy and Brian seek more knowledge and guidance. What makes them successful is seeking the guidance and then acting on the good advice.
Bird dog likes this.
Switched is online now   Reply With Quote
Old 03-28-2018, 07:55 AM   #12
Senior Member
 
Join Date: Feb 2016
Location: North Carolina
Posts: 795
Rewards Points: 386
Default

I've talked to some other local ecs and got an idea of their rates when I first started my side work I based my rates of my first bosses rates and his were very low so I've been raising mine steadily since then. My ten dollar bump was mostly to give me more breathing room when paying travel time and to cover screw ups it puts me in the lower end of the one man shops that I know their rates ideally I would have bumped it 20 but I also have a fairly large existing customer base
Anathera is offline   Reply With Quote
Old 03-28-2018, 01:18 PM   #13
Junior Member
 
Join Date: Jan 2012
Location: pa
Posts: 24
Rewards Points: 48
Default rates

So what are you charging your customers per hour? From what you described above you are under cutting the industry drastically.
lenshap is offline   Reply With Quote
Old 03-28-2018, 06:39 PM   #14
Senior Member
 
Join Date: Feb 2016
Location: North Carolina
Posts: 795
Rewards Points: 386
Default

Based on what I have found from asking others the typical 2 man crew runs 95-125 per hour and either hourly one way with a fuel charge or a service call fee. Quote jobs tend to be right at 40-45 per man hour. My first boss charged 65 per hour I have been charging 85 per hour with a 105 service call fee that includes the first hour I've bumped up to 120 for first hour and 95 hourly which puts me on the low average of the people I talked to. I'll bump up again here in a few months to get to the higher end of the average as I feel I do high average work not low average work. If I left it where it was @85 I feel it would be undercutting the market but 95 -105 per hour is pretty standard though there are two shops that hit 200 per hour but they are mostly commission style
Anathera is offline   Reply With Quote
Old 03-28-2018, 11:13 PM   #15
Senior Member
 
Switched's Avatar
 
Join Date: Dec 2012
Location: California
Posts: 6,129
Rewards Points: 8,986
Default

Have you done the math to see what you should be charging though?

Every business is going to be unique in their overhead, most will be in the same ballpark, but everyone will be different. You need to know your numbers, not any other shops.

Run the numbers to come up with a break even and then build upon that for 10% profit, 15% profit, 20% profit, etc...
Kyrton likes this.
Switched is online now   Reply With Quote
Old 03-28-2018, 11:43 PM   #16
Senior Member
 
Join Date: Feb 2016
Location: North Carolina
Posts: 795
Rewards Points: 386
Default

Given that I am 2 months in I don't have solid numbers on my overhead costs yet I have a general idea of it because I have carried the insurance and payroll for awhile now but covering my own expenses is new as well as bringing on help. The 85 per hr with 105 was based on me and 3 guys in 2 crews each averaging 20hrs (40 hrs a week total) and a 10% profit but that changes as I actually hire those people and bring on benefits etc thus the$10 bump up
Anathera is offline   Reply With Quote
Old 03-29-2018, 06:47 AM   #17
Small Potatoes
 
flyboy's Avatar
 
Join Date: Jun 2011
Location: North East and Treasure Coast Florida
Posts: 5,016
Rewards Points: 3,767
Default

Quote:
Originally Posted by Anathera View Post
Given that I am 2 months in I don't have solid numbers on my overhead costs yet I have a general idea of it because I have carried the insurance and payroll for awhile now but covering my own expenses is new as well as bringing on help. The 85 per hr with 105 was based on me and 3 guys in 2 crews each averaging 20hrs (40 hrs a week total) and a 10% profit but that changes as I actually hire those people and bring on benefits etc thus the$10 bump up
Can we please move this thread to the "Business Lounge Private" section? Posting these hourly rates on an open, public forum does our industry no good.

I know that you don't know this yet and you certainly aren't alone, but you cannot run a profitable business on those hourly rates. Contrary to popular belief, it has nothing to do with where you live or what your competitors are doing. Try real hard to get that out of your head and politely ignore anyone that tells you differently. Trust me, I know what I'm talking about.

If you really want to know how to do it, PM me with your email address and in a couple of days I'll send you a spread sheet and instructions for determining what your hourly rate needs to be.
active1, MTW and MotoGP1199 like this.
flyboy is offline   Reply With Quote
The Following User Says Thank You to flyboy For This Useful Post:
guitarchris (04-04-2018)
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Should I take a business course? Hangry Business, Marketing, and Sales 8 03-23-2018 11:17 PM
Back panel / finger slotted duct LuckyLuke General Electrical Discussion 4 06-10-2016 05:12 PM
Back to work after 11 months off NDC General Electrical Discussion 7 06-01-2016 07:38 AM


All times are GMT -4. The time now is 08:12 PM.


Powered by vBulletin® Version 3.8.8
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
Search Engine Optimization by vBSEO 3.6.1
vBulletin Security provided by vBSecurity v2.2.2 (Pro) - vBulletin Mods & Addons Copyright © 2019 DragonByte Technologies Ltd.
User Alert System provided by Advanced User Tagging (Pro) - vBulletin Mods & Addons Copyright © 2019 DragonByte Technologies Ltd.
Our Pro Sites Network
ContractorTalk.com | DrywallTalk.com | HVACSite.com | PaintTalk.com | PlumbingZone.com | RoofingTalk.com