Electrical Business Startup

SonoranShocker

Hey guys,

I am in the process of starting an electrical company. I have passed my trade exam, and have finished and turned in my LLC paperwork. I am just waiting on enough money to buy my bond to complete my process. My question for you guys is about bidding. Although I have about 10 years of experience doing the work (about 3 of them running jobs), I have done very few bids and the ones I have done on my own were billed as just time and material. How else can I bid? I would really like this company to take off, but I am worried I may be limiting myself. I am located in the Phoenix metro area, and would apreciate any advice from anyone. Thanks!

mdshunk

Methinks you jumped into the shark pool sorely unprepared. Grow slowly, in this case.

mickeyco

Don't forget to charge for wire nuts, they add up.



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Some people climb mountains. I take out the trash. But we both do it for the same reason.

Michael Olding

Bid as many jobs as you can.

Only bid with those who will tell you, honestly, how you came in. Tell the others your too busy.

Write down every bid you turn in plus the numbers from the next two competitors. (GC should give this to you when you ask for the numbers)

After about 6 months you will start to recognize how your competition bids and where you fit in.

After 1 year you will know exactly what your competition is doing depending on the job type, time of year and current work load.

You'll learn the most by watching your competition because making money bidding isn't about being the cheapest... it's about being the lowest price on the right job at the right time.

Example: 1 job put out for bid 3 times during the course of a year should have at least a 200% difference in pricing from low to high. This way your competition never knows what you are going to do either.

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Masonry repair expert - structural, restorations, tuck pointing, rebuilding, staining etc.

JumboJack

What good does knowing how much his competitors are charging do him?

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in texas with framing and cornish people will do it for 3.00 a foot. What do yall think about that? Just laber

SLSTech

Exactly - who cares?

Bid = Material + Labor + Overhead (if you are planning on getting a new truck - add in approximate costs or the additional money you will need to replace your existing, etc...) + Profit (10 - 30%)
When you first start out you should be able to figure your hourly quite easily - as you add people plan on them accomplishing 75% of what you can do

Do a search on the site - this & many other topics have been discussed & torn apart numerous times.

Last bit of advice - get Michael Stones books & look into his website Markup & Profit

Best of luck

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Alabama Full Service Remodeling, Renovation, and Preservation by SLS Construction
Certified Energy Efficiency Audits, Ratings, Modeling, Verifications, & Consulting
Residential, Commercial, & Industrial Infrared Thermography Scans

Celtic

Jimmy does!
..but he's high on Cracked Corn


One should always plan for another truck...you're gonna need it anyway.

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Magnettica

Charge as much as you can. enough to cover your overhead, your salary, and a comfortable profit margin to grow.


Don't forget to charge for romex staples either!

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Electrician service in Rahway, Cranford, Clark, Westfield, Mountainside, Scotch Plains, Fanwood, Roselle, Roselle Park, and New Jersey | Same day electrical service and repairs | Licensed and Insured Electrician in Rahway

SonoranShocker

Wow, Im glad I came here for your advice! lol!

Celtic

Sorry Mag....you FAIL!
[I can't believe you actually said that]


Many start-ups do not realize what all is involved in "overhead".

A little more scientific is this approach:
Business Owners' Cost Calculator - MasterPlumbers.com


I would also look at these items:
FreelanceSwitch Hourly Rate Calculator
The Right Price - Randall Hilton

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AgioLighting

Sonoran...

Don't let all these guys discourage you... I just started my Low Voltage company and have been having the same problems... The easiest (laziest) way of learning is the most painful in the pocket book way... Loosing your a$$ You should try to find a mentor. That's what I did. My father in law is a roofer and although he knows nothing about my trade he's put in countless bids and can help catch things that you may need to pay more attention to.

Good Luck, and no matter how many people tell you you jumped in too early KEEP TRYING! I AM!

Magnettica

Fortunately for me I have guys like you posting very valuable information over the past few years that has definitely opened my eyes to what it's going to take to be in business for myself. I haven't made that leap yet and at times I'm not sure that I want to. I mean, I do, but I don't want the stress that comes with it!

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Electrician service in Rahway, Cranford, Clark, Westfield, Mountainside, Scotch Plains, Fanwood, Roselle, Roselle Park, and New Jersey | Same day electrical service and repairs | Licensed and Insured Electrician in Rahway

Celtic

Cool....does he submit bids for people other than you?




Lost your shirt THEN found a mentor?
Your FIL?
Who knows less about the trade than a banana does?
Awesome.

All work and no play makes Jack a dull boy....repeat that a few dozen times.

No one is discouraging Sonoran...if you had a clue, you would not have lost your shirt the first time, only to be "bailed out" by your FIL [who does have a vested interest in keeping a roof over his daughter's head] - the roofer.


Remember:
You get what you pay for.
No charge for the comedy routine ....but thanks for dropping by.

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Celtic

Come on Mag...you know you want to.....come to the dark side....

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Magnettica

I'll tell you I'm definitely on my way and have been for quite some time.

Question, how many electricians have started out on their own (working by themselves) and planned on NO employees but eventually had to because the business grew quicker than expected? The reason I ask id because I have a hard time even letting helpers do any "real work" because I'm such an ass when it comes to doing it my way.

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Electrician service in Rahway, Cranford, Clark, Westfield, Mountainside, Scotch Plains, Fanwood, Roselle, Roselle Park, and New Jersey | Same day electrical service and repairs | Licensed and Insured Electrician in Rahway

rbsremodeling

Here is a suggestion Mag. My electrician is a person operation.

He is good friends with another single op electrician. They do jobs together when the need dictates.

Two master electricians. Good at their jobs who help each other out.

I am not sure the pay arrangement on the backend But I do know their work is top notch.

When I have a large projects they team up to do it together. Seems to work for them they have done this for at least 6 years that I have work with them.

Maybe form an arrangement like this with some one you know??

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Celtic

See...that their is a problem.
How can the young guys learn if someone doesn't let them make their own mistakes?

Believe me, I know what you are saying....I'm pretty much the same, but I have changed my ways.
Let them do it....make a mistake...learn...and then do it the right way from that point forward.

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220/221

I'd tell you but then I'd have to kill you.

A couple of years ago, I'd spill my guts as there was plenty of work to go around. Now.....I am cautiously optomistic

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Just because it's within code doesn't make it safe.

Just because it's against code doesn't make it unsafe.

SonoranShocker

Ahh, I understand completely. I am not looking for handouts though, just advice. I have enough work to keep myself (and my wife) happy, I am just curious about bidding new jobs. I was lucky enough to be "handed" several accounts from a friend and fellow contractor.

Remember, if we stop working together, then we burn bridges. Bad economy or not, its bound to pick back up sometime. Everyone needs electricity. To me thats pretty damn good job security.

"Laugh and the world laughs at you. Cry and the world laughs AT you."

Celtic

Sonoran....you have a great attitude

Mixed in with all the jocularity here [not exclusive to this thread, but on this forum in general] there is some really good information to be found.

I'll apologize in advance for any drinks you may spew onto the screen while reading my posts


BTW, I am a licensed EC in the Great State of NJ



NJ: More than just a funny smell!

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