Getting Started In Low Voltage

Summit Tech

I've been working the low voltage industry for about 3 years now and have my NICET II in Fire Protection Technologies. I live in the mountains of Colorado and work for a local fire alarm / security company. Mismanagement, poor scheduling and atrocious customer service are evidently part of my employer's Mission Statement. I am looking to start doing some sub work on the side and hopefully develop things into a viable full time business.

I've spoken with a number of established low voltage contractors doing fire, security, phone, cable, CCTV, AV etc. locally, and most have expressed an interest in sub-contracting work out to me. I've run my own business previously, but not for this type of work and I'm a bit out of my element in terms of pricing and bidding.

Can anyone offer any suggestions on how one might go about developing this type of business arrangement and what questions I should be asking? I can figure out the business organization, licensing and insurance requirements, but I have no idea how to price out my services. I'm open to doing prewires, trimouts, security, fire or anything else for that matter. Mostly I want to start by just selling my time and expertise, but I don't know how to approach pricing a prewire job versus a security install, fire install or helping them with service calls. Should I price each type of labor option differently or come up with a single hourly rate?

It seems like prewire work around here is done at $35-$45 per drop. I assume that number is for my time and the company I'd be subbing to them pays for the wire itself. Service runs anywhere from $55/hr for security up to $125/hr for fire alarm service work. I have no idea what labor rates are used in bidding new construction.

There's a ton of business and money up here by the ski resorts and not enough people to do the work. I hate to start pulling numbers out of thin air and come in way too high or too low. Where do I start?!?!?! What should I be focusing on?

GSE

It takes a lot of investment money, to do prewires, you will need to secure the the wire contracts, to make the prewire investment pay back, it all looks simple until you see the risk needed to make it all work, and as far as insurances, have a nice amount put away, working a security business part time is asking for poblems, your either all the way in or not at all.

wolverine1574

Dude, Go for it! I just started my own low voltage buisness out here in Tennessee and trust me, you will be happier.

Before you set up shop, look at what the other low voltage companies are charging for that area. If you have a friend who is a tech in that area, he will tell you. We are a small set of professionals, and we have all worked for at least 2 different low voltage companies in the same area.

Will you be doing work for commercial or residential? I charge $65 per drop for residential, $85 for commercial. Setting your price depends on WHAT YOU SEE AND WHAT YOUR TIME IS WORTH!! Dont charge $20 an hr if you have to install a 4 station camera system in a $3 million dollar home! You will see the difference over time and you will learn to adjust your prices when you under-bid or over-bid yourself.

Last but not least, Get ALL of your licencing!!! And I Mean ALL!!!! A year ago, a Friend of mine started his own alarm monitoring company and he just got popped for not having a certian licence and he got fined $1000 a day for 45 days.

Good luck and never give up.....NEVER!

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macmikeman

I am sorry but this is not entirely great advise. I would suggest that before you start worrying about what the competetion is charging you first find out what it will cost you to be in that business. Your business may cost more than the other guy, and you may be losing money while you are staying competetive with the competetors. Find your breakeven cost, add for your desired profit, and start with that number for a baseline to go uphill from. Then if you find the other guys are getting more, great, move your prices up to match them, but make sure you are covering all your costs first before you ever set prices to the competetion.

randomkiller

[quote=wolverine1574;293493]
Last but not least, Get ALL of your licencing!!! And I Mean ALL!!!! A year ago, a Friend of mine started his own alarm monitoring company and he just got popped for not having a certian licence and he got fined $1000 a day for 45 days.

So what is he doing for work now?

firefight1227

Sounds like you're in the same boat as I am. I am 25 years old and looking to do the same. I've been working in fire and communications for 4 years now and im tired of making other people money. I recently attended EST3 (Edwards) training and looking to get quick start. I have a "investor" that wants to back me in creating my own subcontracting business, but i have not found any resources to licensing, insurance, or contract regulations. I have built relationships with multiple low voltage companies to obtain work from if I can just get it started, but I don't want to get screwed since I am kinda young and lacking knowledge in managing a small business. Does anyone know of resources i might be able to find to map all this stuff out?? Any help would be greatly appreciated!!

Ryannn

I just started looking for jobs in Ottawa Canada, but not too educated in the inner workings of this industry, how to sell, who to talk to, etc...

I figure our target market is:
1) Trades (framers, drywallers)
2) Builders, Renovators & GC's
3) The end consumer

For builders & trades i plan on giving them price they are able to mark up and sell to thier client. Emphisis on personal selling.

To reach the end consumer i plan on direct mail, post signs and directory listings.


Am I wasting my time with the end consumer?
Is this the right route to go?
Would becoming an electrician to better sell the LV be worth it?

Any thoughts are much appreciated
Cheers!

AlphaSecurity

I know this post was started a while back, but I say "If you risk nothing, you risk everything".

I started just like you did at 22 years old, fortuantly, 4 years later, I am starting to reap the benefits. I will tell you, it is a headache, but rewarding as well.

First thing I would recommend is this:

1) WRITE DOWN YOUR GOALS, even if you can't accomplish them
2) Start small, don't take out any loans unless you have to
3) Buy used tools and equipment
4) CUSTOMER SERVICE


I could go on and on, but best of luck to you.

ICC Marco

More and more end users are trying to do their own low voltage installations especially since many of their positions are getting outsourced it encourages them to play a bigger part in their IT infrastructure.