I got my master electrician license today.
I am thinking of adding electrical service work to my insurance. I know how to figure that into my overhead cost.
Question is how much to add to my labor rate, or do I just use a different rate when it involves electrical repairs?
I currently just do remodeling and repair work without touching any electric repair. By broadening my work scope, can I ethically charge more accross the board, even on jobs where there is no electric repair involved?
Any imput is appreciated.
Dave
Replies
Ethically? Hell yes. Your qualifications are substantial and you should charge the max. Why would you be painting Mrs. Smith's back steps for $30 per hour when you could be wiring Mrs. Jones' kitchen for $60 per hour? Obviously you need to steer your business towards jobs with electrical work in them, but when you bring more skills to the job you get paid more. It's mostly a matter of positioning yourself in the market and in your customer's mind.
I think I'd set it up - - in your head, on the books, via business cards, and in billing, as a separate company. Harder to say yeah I'm a jack of all trades and a master electrician than to say I have this business that caters to remodels and this business which does solely electrical work. At that point, much easier to have different billing rates. And do you charge more? I dunno. You said you know how to figure overhead already. I say whatever you want to make, charge it. I know sparky and plumbers here get a heck of a lot more per hour (billed) than I do, but judging by what they drive and where they live, I keep more than they do. But I'm not towing around a trailer with a bobcat or a trencher on it either.
"If you pick up a starving dog and make him prosperous, he will not bite you. This is the principal difference between a dog and a man." - Mark Twain
RW
You shouldn't make the mistake of beleiving that what a man drives determines how much he makes, or saves. Sometimes the people who are ahead, keep their heads down so others don't aim at them.
Save the cliches hoss. If you don't understand the generalization, resist the urge to come up with something cocky."If you pick up a starving dog and make him prosperous, he will not bite you. This is the principal difference between a dog and a man." - Mark Twain
Now your a Master Electrician providing a wide range of remodeling services.
I think you now bring a huge set of qualities to the customer. Congrates on passing the exam. It's a big deal. And having this "Phd" behind your name makes you more valuable. Charge like a Master Electrician. Those paint jobs will deminish, but what the hey, if someone sees the value in paying to paint (you might just be a great painter) so be it.
Again, congrates!
Did you also get an electrical contractors license. You need that if your going to bid and pull permits for jobs.
Who Dares Wins.
No.
I really don't want to do new work, or anything large. As you know there are a ton of small electrical contractors that play cut throat in the residential market here.
I have stayed away from all electric work associated with any remodeling I do, because my insurance did not cover that risk. It was the old " the last guy that touched it, is liable" thing.
I like Sonnys' idea of up charging for electric work associated with remodels. My basic hourly rate is increasing to cover the additional overhead cost and reflect tthe higher set of skills (credentials) I bring with me.
I only do small one man jobs, so in keeping within the scope of my business, I avoid large time consuming work. This is just another caveat, that allows me a little growth without the headache of employees.
Dave
That's definatly the way to do it. What I was getting at is I thought that it was a requirment to do electrical work in KY. Any work. I know most don't I was just curious if you did.
As far as the last guy that touched it goes, I ran into a perfect example of that last week. A buddy of mine that owns his own electric business rewired a room addition for a home owner that had tried to do it himself. After he had fixed it all and left, the HO called and said the bedroom lights didn't work. Long story short, when my friend had tied the wires down on the breaker he added he had inadvertantly moved a wire on the other side of the buss bar that had never been screwed down. When the HO called him he was out of town and had to ask me to go look. Anyway it was something he had never wired and he was left holding the bag.
P.S. if you get into a Saturday or Sunday job you need a little help on to get done or whatever give me a call. I don't like to work Saturdays (we work a lot of them anyway) but I will to help you out if need be.Who Dares Wins.
It is my understanding that under the new regs, I can do repairs, replacements andsuch without needing to pull a permit.
I have turned down hundreds of ceiling fan install over the years because i won't work outside the limits of my liabilty insurance. Adding GFCIs is another one that I run into. A few times I have also been ask to upgrade services, but I believe that still requires a permit.
I did a sun porch enclosure last year, and had to have a guy at work run a circuite for the new recepticals. He has a pretty good side business, with 4 men working full time, and he delayed the dw hanging for two days because of emergency work. No biggy to me, but HO was starting to get annsi by the time he showed up. Took a total of 2 hours to rough in and he came back for lees tha an hour for the switch and plugs install. $150.00 charge, that could just have been mine.
I guess you have ungraded your masters license to a contractors, haven't you? Maybe in a few years, if I see the nedd. I'll take the test and get the contractors license.
Thanks for the offer. I may take you up on it. With the way my house is going, and all the wet weather last year, I don't think I'll do much agian this year. Course after the house eats my budget to near zero, I may have to take all the stuff I can get.
Dave
Yep your right about the repairs. I assumed you were going to take on other stuff. I'm happy just having a masters license, my boss has a contractors license for when we pull permits. I'm toying with the thought of gearing up To run a side business like you. I'm getting tired of working seventy hours a week for someone else. I'd like to take a fourty hour a week job and run my own show the other thirty.Who Dares Wins.
I’d use a Variable Pricing Structure (VPS). Here’s what I mean:
Say I get a job to do a drywall repair by replacing a 2’ x 2’ ceiling patch, damaged by a leak above. I charge my regular rate for traveling and doing the patch and taping, but $125/hr. for blending the type of texture into the surrounding ceiling area. Even if that “premium†rate is only for 1/2 hour, it’s still $62.50 verses my $41.00 for 1/2 hr.
The same would apply for anything else I do that’s part of any project. As the requirements (or licensing) of the needed expertise increases, so does my rate - hence a VPS.
Framers should do the same. Obviously it takes a lot less expertise and experience to just frame walls than it does to calculate, cut and install compound cuts for a complicated roof.
Just my 2¢
I've been mulling taking a trade class to prep for the master's. Ours is heavy on the three-phase knowledge (Indiana) which I know one guy who failed who has superb knowledge of electrical stuff. but I've always been good at book learning / test taking. I don't think we have a requirement for working in-trade here to get the ME, and I'm not sure if we do for get the contractor's license. How about where you're at?
remodeler
Our inclination has been to charge a single rate for all labor. Though we use subs whenever possible, we do have a range of experience for all our carpenters. We charge a single rate, whether the carpenter is little more than a laborer or one with twenty years experience. It is probably a little low for the experienced worker and high for the new guy but probably comes out in the wash. We determine who does the work, not the customer, though we will stand by the quality in any event.
We use this method because it is simple and not subject to timekeeping and interpretation. It also simplifies paperwork though if you are concerned with monitoring your costs, you should be tracking all this anyway.