Electrical Estimation

[david2677]

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

[AndyD]

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?

[david2677]

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

[Dave A]

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?

[Leecatt]

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

[wynn]

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'

[Leecatt]

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

[david2677]

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

[AndyD]

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?

[Dave A]

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:

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).

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.

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.

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.

[david2677]

A mouth full in my last post was replying to previous posts and mine lacked coherence.
I stand by my work and will go back to attend my work which is yet to be done. I this context I meant to say I pride in my work and will attend to any come backs.

Why aren't you getting paid Unfortunate to me though a lesson well learnt, I need to get quotations/contracts signed off prior to commencing work

[Justloadit]

Why aren't you getting paid Unfortunate to me though a lesson well learnt, I need to get quotations/contracts signed off prior to commencing work

We all been through this, especially when we start out, we want to please our clients, but the old sharks, can smell your blood when you come through the door, and boy do they take advantage of you if you let them.

An old timer told me many moons ago - The only times he was taken, was when he trusted them.

So moral of the story, does not matter who or what they say they are, sign here with a deposit, and payment before I leave, else I am out of here.
It will be cheaper for me to stay at home than take chance.

Been there done that and got a number of T - shirts.

Occasionally I still get taken, because my human nature is to trust people, but it is getting less and less now.

[Heidje Janse Van Rensburg]

David,
This is an article for Plumbers but I am sure you can make a few changes to make it relevant for you. http://goo.gl/l0I0tK