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Thread: Electrical Estimation

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    Electrical Estimation

    I,m a new contractor and constantly battle in my pricing schedule it has come to a point of folding the business. I,d greatly appreciate advise on how I could solve my pricing issue, I don't expect unrealistic pricing to the client or myself. I thank all respondents in advance and if there is a price guide where is it purchased

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    Diamond Member AndyD's Avatar
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    What make you suspect that your pricing is the overwhelming factor that's responsible for your failing business? What kind of electrical work do you do?
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    I mostly do residential and commercial installation and maintenance. I get the feeling as I keep getting the opinion from people. Never the less what maybe a contributory factor. I for one had to let a guy go who had become reluctant to work

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    Quote Originally Posted by david2677 View Post
    I get the feeling as I keep getting the opinion from people.
    What are they saying? Pricing too high, too low, too erratic?

    Is the business struggling despite being busy, or because you aren't getting enough business?
    The trouble with opportunity is it normally comes dressed up as work.

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    Quote Originally Posted by david2677 View Post
    I,m a new contractor and constantly battle in my pricing schedule it has come to a point of folding the business. I,d greatly appreciate advise on how I could solve my pricing issue, I don't expect unrealistic pricing to the client or myself. I thank all respondents in advance and if there is a price guide where is it purchased
    Pricing guide for dummies:
    If you see a look of anguish on your customers face you've got the pricing just right.
    If they smile then you've under-priced and if they complain dramatically, skim 5% off the top.

    Each electrician will price himself according to his own abilities and self confidence, and your customer will pick up on that and react positively to it in most cases
    To make a mistake is human, to learn from that mistake is knowledge and knowledge is strength.

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    Dave A (19-Mar-14)

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    Diamond Member wynn's Avatar
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    Quote Originally Posted by Leecatt View Post
    Pricing guide for dummies:
    your customer will pick up on that and react positively to it in most cases
    And put in a rider that you stand by your work and if any cheaper 'fly by night' electricians get the job it will cost RXXX a whole lot more than your original quote to repair the 'F ups'
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    Quote Originally Posted by wynn View Post
    And put in a rider that you stand by your work and if any cheaper 'fly by night' electricians get the job it will cost RXXX a whole lot more than your original quote to repair the 'F ups'
    I agree. The last 10 years I have made a business fixing other mistakes. Its all I do now, nothing else
    To make a mistake is human, to learn from that mistake is knowledge and knowledge is strength.

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    Yes the business struggled despite being busy cant repair/replace tools, now we sitting without work and reflecting. I stand by my work and will go back to attend my work which is yet to be done. I dought I'll take someone's bad work at this time I spent 5 weeks this year doing bad wiring done by fly by night and the client wont pay after explain the content of work on a daily basis during the coarse of working. I saw a book at builders warehouse (R450.00) for the construction industry and includes a price guide. I found it very usefull

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    Diamond Member AndyD's Avatar
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    If you're just doing new domestic installs I've seen electricians quoting a price per point but I assume they can do this because new builds are fairly predictable so maybe what they may lose on the roundabouts they make it up on the swings elsewhere. I'm not sure how well this system of quoting would work with additions, alterations and repairs to existing installations though.

    Problem is though if your customers aren't paying then it doesn't really matter what pricing structure you use, it won't make any difference. Why aren't you getting paid? Have you started the usually route to recovering your money?
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    Site Caretaker Dave A's Avatar
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    Oh wow! That's a whole combination in one post. It feels like you're all over the place, so let's try to break this down a bit:
    Quote Originally Posted by david2677 View Post
    Yes the business struggled despite being busy cant repair/replace tools
    Normally an indication of under pricing, or slow collections - or occasionally growing too rapidly (i.e. undercapitalised).

    Quote Originally Posted by david2677 View Post
    now we sitting without work and reflecting.
    Well, at least you're reflecting. It's pretty important to understand the real reasons why you're without work and not kid yourself, though. Normally an outsider's perspective of someone who understands you and your business can be a great help at times like these. If you can, try to find a mentor.

    Quote Originally Posted by david2677 View Post
    I stand by my work and will go back to attend my work which is yet to be done.
    I thought you said you're sitting without work?
    Well at least it sounds like there's something in the pipeline.

    Quote Originally Posted by david2677 View Post
    I dought I'll take someone's bad work at this time I spent 5 weeks this year doing bad wiring done by fly by night and the client wont pay after explain the content of work on a daily basis during the coarse of working.
    Bad payers will kill you no matter how you price. Building strategies to avoid these assholes this problem should definitely be high on your list of priorities.

    Insisting on working only with clear, legally tight and properly signed off contractual agreements in place tends to have the worst of the sharks scurrying off looking for other victims to feed on. Unfortunately avoiding them completely is easier said than done though, so you need to make some allowance in your pricing strategy for the fact that some people won't pay.
    The trouble with opportunity is it normally comes dressed up as work.

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