How One Electrician Made My Day

OCRS

That would be good. (if that's his thing) I'm sure his reasoning for not charging for the inital work was repeat biz.

mdshunk

We're all the time making fun of customers and GC's who try to bait you with the promise of future business. "Give me a good price on this one and I'll...". Right here we have an example of an electrical contractor who's falling into that same trap, but he set the trap himself. He's secretly hoping for more work without even so much as vocalizing it, which may or may not come, and he's giving you a good price on the first call (free). This is dumber than dumb. This is a perfect example of why not every qualified tradesman will make it in business. Maybe he's calling that first service call "advertising expense", but I call it idiocy.

Winchester

Maybe Aggie had already told him he was hired for the panel replacement and he just added the service call into the quote for the panel replace (which is already cheap)

Also maybe they had been chatting and he had mentioned what he does and that he may be looking for an electrician for these other jobs, and this guy with his 5 starving children at home saw a chance to lose out on a couple hundred bucks but make thousands in the near future?

I don't know, it's just hard to trash a guy when we don't know all the specifics.

__________________
Ryan

dlcj

Sounds high to me too. New 200 amp 40 circuit panel with 200 main installed, bout $200. Fill it with breakers (assuming you need them all) bout $7.50 per pole. $300. Second ground rod and wire $25. Total $525 material. 1300-525= $775. 775/6hr= $130hr. Sounds pretty dam good for the sparky to me. I think he included a couple hundred for the the first service call too.
Not bad mouthing him, if your happy with that price than thats all that counts. But i definitely dont think thats a steal. Then again i dont live in N.Y. or Calif. Thank god

mdshunk

I'm not trashing any guy, but I am trashing idiotic business principles. No matter who's mouth it's coming out of, this is a stupid marketing tactic. Will it work sometimes? Without a doubt. Is it the most effective way to market? No freaking way.

Aggie67

The marketing tactic he used - if he did come in low - is called a loss leader. It does work and it's used a lot. And again, as the customer, I'm satisfied and happy with the experience. I have his card, and anything I have to get done at the house or shop, I'm calling him for now on.

mdshunk

No, it's not. He gave you a service call for free when you had every intention to pay. It would only be a loss leader if he was giving away a free service call and you knew about it ahead of time.

I suspect very much that his cheap price on the panel change is his every day price, and is not a loss leader at all. Some guys simply don't have a real idea of the cost of doing business, and this is a perfect example of that.

Aggie67

That could be what's going on, too. That's got to be considered. I'm assuming he knows how to estimate, and he might not. He seemed legit. Got a good vibe, but I could have it all wrong. And if I look at what I wrote: "for what I got, I would have been just as happy paying a little more," it looks like that's it. It looks like he's underpricing himself and doesn't know what he's worth.

mdshunk

I predict that you're going to get a nice job and good service from this EC. He's just leaving money on the table, and his business methods are screwy. That's all. Many of the best tradesmen are the worst businessmen. Seems to often be skills that are on the opposite ends of a teeter-totter. Very seldom do you get both in the same guy. I've noticed that the most profitable electrical contractors I know couldn't personally wire their way out of a wet paper bag. They hire people for that.

Magnettica

What about the mark-up on material, or the time going to and from the supply house? What about including some profit so the business can grow? And that's not even counting the list of what-ifs like new brakes on the van or the price of the permit and the time going back and forth to city hall.

woodchuck2

I would agree with this. The job i described i was already at the home when the homeowner asked about the panel replacement. They already had a full 200 amp panel and the breakers were obsolete around here so they wanted an upgraded, easier to find panel/breakers. I replaced the SEU "scrap peice from another job" because it was to short for the new larger panel. Other than that it was a simple swap. For me i figure about $800 profit for one days work. I would love to do one of these a week on top of other work. As MD says, it all has to do with your overhead and knowing the cost of business.

Eddy Current

So true!


Words of wisdom told to me by a very profitable electrician who can not wire his way out of a paper bag:

Any electrician can do the job, but it takes a smart electrician to blow something up and still get paid, keep the customer happy, and get return buisiness.

kgphoto

Nah! Buy him and the missus a dinner at the best restaurant in town. And still give him all the work he can handle.

slowforthecones

depends what locality your in. I'm in norcal and we don't have all in one inspectors unless we pay extra and it's a weekend thing or residential 2 unit or less.

slowforthecones

I think $1300 is NOT a steal. i'm in california and i usually don't do residential unless it's residential on agricultural or friends/family home, and I usually charge $800 out the door CASH. That square d panel he mentions is $175, breakes are $7 a piece. sounds like he is making $100+ an hour on this quick panel changeout. even if he has to start from the service connection (street).

Magnettica

The last 200 amp service I did the materials cost about $700.

2"PVC:

1 - Service head
30' conduit
2 - 2" male adaptors
1 - offset male adaptor
1 - LB
2 - Sweeps
6 - straps
1 - small can of glue

200 amp meter pan
2 - copper ground rods
2 - copper ground rod clamps
6 - 1/4" straps
plastic anchor kit
20' #6 copper
4 - water ground clamps
50' #4 copper
10' pressure treated 2x4
1 - 2' x 4' 3/4" plywood
1 - small can of black paint
1 - cheap paintbrush
4 - 2.5" lag screws
4 - 2" shields
2 - 2" locknuts
2 - 2" plastic bushings
1 - 40 ckt Square D 'QO' panel
12 - 15 amp SP breakers
12 - 20 amp SP breakers
1 of each: DP 30, 40, 50 amp breakers
125' 2/0 copper
$110 permit
3 - 3/0 copper split-bolt connectors
1/2" Romex connectors
1/2" BX connectors
3/4" Romex connectors
white tape
black tape
_______________________

Well over $800.00 alone in materials. And this isn't even taking into consideration the time to get the permit, materials, and meeting with the inspector some time the following week for the inspection. If the bill was $1300.00, the total profit for this job would be about $250.00 for nearly 2 days of work. I'm not ok with that. I could do better working for an EC and make that in one day, nevermind working for two using my own tools and equipment, not to mention headache if something goes wrong.

$1300.00 - you've got to be kidding me.

Tiger

Why CASH?

mdshunk

I see you've got the license, but you're not really a contractor... are you??

slowforthecones

Yup I'm a contractor, electrical and mechanical. And I said CASH price for friends/family.

slowforthecones

So the gf doesn't know I made some cash for my new 4x4 or scuba gear.