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Old 02-17-2015, 03:54 PM   #1
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Default What am I worth???

Here's the scenario:

Established plumbing/hvac shop, 15 guys, looking to offer electrical services. They need a Master Electrician. Already have a journeyman and apprentice on staff. Masters role will be sales, estimating, design, permits etc and some field work. Of course providing the license to be used by the company is the biggest piece of the puzzle. This is for resi service mostly.
I bring the license and 27 years in the trade, 20+ as a one man operation doing exactly what they are looking for someone to do.

I need to come up with a value for this and I'm coming up empty!!!

Thoughts????
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Old 02-17-2015, 04:18 PM   #2
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I would base my offer on what your making now on average plus 20% assuming you'll get good bennies with the deal. So if your making 100k, I'd say 120K plus the bennies. Just remember you're giving up some of your freedom if you work for someone else but maybe have less frustration and actually less hours during the week.
This is JMHO.
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Old 02-17-2015, 05:05 PM   #3
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Quote:
Originally Posted by jw0445
I would base my offer on what your making now on average plus 20% assuming you'll get good bennies with the deal. So if your making 100k, I'd say 120K plus the bennies. Just remember you're giving up some of your freedom if you work for someone else but maybe have less frustration and actually less hours during the week. This is JMHO.
Yeah, what he said.
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Old 02-17-2015, 05:29 PM   #4
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Minimum, journeyman's wage (and insurance) as a salary and 10% of the electrical revenue. That shouldn't scare them off.

If you/they can expand the business over the next few years, you could start pulling in some real money.

Before making an offer, you should meet with them and discuss their revenue/sales goals, marketing strategy etc and get a better feel for the business.


Do some research on the business. Dress nice but have rough hands

After 27 years, I know you realize that the real money come from sales, not installation.

Last edited by 220/221; 02-17-2015 at 05:31 PM.
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Old 02-17-2015, 05:38 PM   #5
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About half of your charge-out rate. More experience usually lends to a higher rate.
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Old 02-17-2015, 05:53 PM   #6
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Are they also buying your phone number, company name and client list etc..?

Mike
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Old 02-17-2015, 06:17 PM   #7
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Perhaps contact your S.C.O.R.E. representative and talk to them.Talk to a good businessman,maybe start with your local Chamber of Commerce.

I've heard something about future earnings should be included.
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Old 02-17-2015, 06:42 PM   #8
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If I understand Massachusetts correctly a Masters is required to have an electrical contracting business. Without the Masters they can't do the work and unlike Illinois, the penalties are severe. I would personally check the liability. Again, if I understand correctly, if their employee does electrical work without a permit, you lose your Masters.
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Old 02-17-2015, 07:49 PM   #9
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This is trickey...
I would opt for a solid yet not over the top base pay. Say 60k
Then do a percentage of the electrical once you meet a set quota the incentives kick in.
I.e. you cover your salary and then some....
If you walk in wanting the world on a plate they not have any interest.
If you show a willingness to work and pay you for your efforts I think you can do well.
So this may be my proposal.
60 k base.. after selling 120,000 worth of work, get an additional 15% of electrical revenues.
That's just my 02
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Old 02-17-2015, 08:00 PM   #10
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Depends on the area of Mass. 80k plus insurance. Maybe some commisions to add to it.
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Old 02-17-2015, 08:05 PM   #11
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As they say around this website, I wouldn't get out of bed, unless it was $500,000. a year
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Old 02-17-2015, 08:06 PM   #12
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Pleasant thought nonetheless.
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Old 02-17-2015, 08:11 PM   #13
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You are worth exactly what the market will bear , along with whatever you can sell yourself as Scott

Just like any of us, on any given day

Good Luck

~CS~
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Old 02-17-2015, 08:22 PM   #14
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100k plus bennies. It's your ass on the line when you sign off on that permit. Your liability is worth more than a dollar or two an hour over what a journeyman makes.

Make it worth your while.
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Old 02-17-2015, 08:24 PM   #15
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I thought you were already doing this?

Or has this been a just a long romance?
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Old 02-17-2015, 08:33 PM   #16
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I would say salary of $70k plus bennies, and a take home vehicle, some thing cheap and fuel efficient like the ford transit connect. Then request 20% of net profits for all electrical work performed by the company. I am a business owner and I have incentivized 2 key employees that way. Nice thing about this structure is when business is good everyone is making great money, and when the bottom drops out I don't get sick to my stomach when I see one of them walking around the office. $70k is also a respectable salary anytime of year, so the employee doesn't feel bad either. At least in New Jersey anyway.
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Old 02-17-2015, 08:38 PM   #17
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Quote:
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Then request 20% of net profits for all electrical work performed by the company. .
Careful with that. The owners have a lot of control over the net.
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Old 02-17-2015, 09:18 PM   #18
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Quote:
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Careful with that. The owners have a lot of control over the net.
This is the tricky part, there's no reason to open the books to the OP!

The OP is no more than an employee on paper and has no right to the
books either.

Now a limited partnership in respects the what the op is being offered
and what the owner is willing to offer is what would make the difference!

Now a real partnership will hold to a higher level of association, than just
a above average guy on the payroll. It will also require by law the other officer to open the books.

It's case Law in NC and studied in Law School, if an association is made by contract then all party's
have right to review, vote on and view company practices, depending on what's set up by the party's invoiced.

I don't know all involved but it fell out like this; An architect, a partner got booted out of company,
they didn't follow their own contracted agreement on dismissal of contract per their own arrangements.
He says that's fine, (Don't deal with exit package) I'll just review your spending measures and still
had a vote in the practice and a voice on any associations as many times a year as required.

There's all kinds of ways to shuffle paper once inside the office and for tax purposes as well.
The OP could assume the two employee's and bill them to the company along with themselves.
Another example is renting back tools and equipment to the company on jobs.

Get a Lawyer, this is some tricky stuff your getting into!
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Old 02-17-2015, 10:23 PM   #19
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I'm doing that now. Your going to have a tough time convincing them your worth 120000 grand from the get go even if you were making that on your own. Make sure you talk to a lawyer first and get all your ducks in a row.
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Old 02-17-2015, 10:29 PM   #20
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I'm doing that now. Your going to have a tough time convincing them your worth 120000 grand from the get go even if you were making that on your own. Make sure you talk to a lawyer first and get all your ducks in a row.
What is it that you're doing now?
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