# Hourly rate



## Gamit

At what rate are you billing your guys out for residential work? I know everyone has different expenses overhead,etc I'm just trying to get a feel on where I should be. Please let me know what part of the state you reside because obviously this plays a big roll. Mechanic and Apprentice

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## tufts46argled

$90 and hour by the quarter hour($22.50), after a $79.50 service call fee. Serving the greater Jackson, MS area!


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## Mr Rewire

I charge 1 million dollars a minute.


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## Gamit

Mr Rewire said:


> I charge 1 million dollars a minute.


Honestly people around here are complaining about $60 a hour!

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## Magnettica

Gamit said:


> Honestly people around here are complaining about $60 a hour!
> 
> Sent from my iPhone using ET Forum


That's because you're a new EC. 

I have the same issues since I started out on my own in 2009. 

My idea is to work and and work fast. Show up on time and return phone calls. 


:sleep1:


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## Gamit

Magnettica said:


> That's because you're a new EC.
> 
> I have the same issues since I started out on my own in 2009.
> 
> My idea is to work and and work fast. Show up on time and return phone calls.
> 
> :sleep1:


These customers do not know I'm a new contractor. And no one honestly works harder and neater then me..

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## Mr Rewire

Gamit said:


> These customers do not know I'm a new contractor. And no one honestly works harder and neater then me..
> 
> Sent from my iPhone using ET Forum


 you have that "new" contractor smell :thumbsup:


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## Mr. Sparkle

Dude anybody complaining about $60 an hour for only you to show up is an assh*le and not even worth a split second of your time, my hey I'll do you a favor because your a long time customer or friend of the family and you live right here in town cash price might......might be $65 an hour, if I like you.


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## Gamit

Mr. Sparkle said:


> Dude anybody complaining about $60 an hour for only you to show up is an assh*le and not even worth a split second of your time, my hey I'll do you a favor because your a long time customer or friend of the family and you live right here in town cash price might......might be $65 an hour, if I like you.


I agree.. This happened to be a customer or potential customer from crags list. If I ever get a another call from someone on craigs list I will tell them up front not to waist my ****ing time.

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## gold

Between 150 and 250 depending on the task.


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## B4T

Sending out a mechanic and a apprentice on a residential service call is a waste of your time..

Do you really need (2) men to find a bad receptacle splice? :blink:


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## MF Dagger

B4T said:


> Sending out a mechanic and a apprentice on a residential service call is a waste of your time..
> 
> Do you really need (2) men to find a bad receptacle splice? :blink:


Apprentices have to learn trouble shooting sometime.


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## Englishsparky

And do people really have to quote mr rewire? I think anywhere from $65 to $150 an hour is reasonable to cover your overheads.


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## gold

Englishsparky said:


> And do people really have to quote mr rewire? I think anywhere from $65 to $150 an hour is reasonable to cover your overheads.


anything more then that you may make a profit. Can't have that.


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## Englishsparky

gold said:


> anything more then that you may make a profit. Can't have that.


Well, I agree mr gold. If you can get more then definitely do. Everyone has to make a decent living.:thumbsup:


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## robnj772

Gamit said:


> These customers do not know I'm a new contractor. And no one honestly works harder and neater then me..
> 
> Sent from my iPhone using ET Forum


How do they not know? Isn't you lic # on everything? 

BTW $60 in NJ is the cheapest I have ever heard. Your going to be bankrupt by Labor day charging that.

It really depends on what you do. If your doing just service work you need to charge more an hour then if its a construction job because the OH is different. I would say between $95-125 an hour is a fair price int NJ these days


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## electricmanscott

Englishsparky said:


> And do people really have to quote mr rewire? I think anywhere from $65 to $150 an hour is reasonable to cover your overheads.


If you are a one man or a few man shop, no bigger, anything less than $150.00 an hour is working just to live. If you want all the benefits you would likely receive form working for a good company after say about 5 years or so (Good salary, Health, dental, vision, disability, 401k w/match, vacation, sick time, holidays, PTO etc.)you have to get $200.00 an hour plus.. I've run the numbers many times and always come out around $212.00 per billable hour. 

Sent from my computer at my cushy job where I don't have to think about the above anymore. :thumbup:


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## BBQ

electricmanscott said:


> Sent from my computer at my cushy job where I don't have to think about the above anymore. :thumbup:



:thumbup:


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## Cletis

*Hourly*

Hourly is old school in my opinion. Everything should be by task only. Set a solid scope, give them a copy and if it changes....cha ching! 

Hourly encourages moving slower and being less efficient and doesn't reward wisdom and efficiency. 

Cletis


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## Salvatoreg02

Whatever prevailing rate is that's what you should go by. Westchester county, NY is
$80.00 an hour full package " union rate". Anything above that would have to apply to your business needs to survive.

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## robnj772

Cletis said:


> Hourly is old school in my opinion. Everything should be by task only. Set a solid scope, give them a copy and if it changes....cha ching!
> 
> Hourly encourages moving slower and being less efficient and doesn't reward wisdom and efficiency.
> 
> Cletis


 
If your using flat rate you still need to have an hourly rate to base your prices on.


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## robnj772

Salvatoreg02 said:


> Whatever prevailing rate is that's what you should go by. Westchester county, NY is
> $80.00 an hour full package " union rate". Anything above that would have to apply to your business needs to survive.
> 
> Sent from my iPhone using ET Forum


 
And you still haven't taken any business classes I see :laughing:


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## The Lightman

Hey Sal, I am not implyng anything. If Rob is correct, try these. SBDC rocks!
Queens - York How to Keep Track of Job Costing and Maintain the Accounting System Jamaica 5/11/2011
ManhattanBusiness Planning for Success New York 5/11/2011
Queens - York  How to Keep Track of Job Costing and Maintain the Accounting System Jamaica 5/11/2011
Brooklyn City-Tech
Small Business Legal Clinic Brooklyn 6/14/2011


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## Sparky3

Salvatoreg02 said:


> Whatever prevailing rate is that's what you should go by. Westchester county, NY is
> $80.00 an hour full package " union rate". Anything above that would have to apply to your business needs to survive.
> 
> Sent from my iPhone using ET Forum


Hey sal the complete package for a Westschester A-rated journeyman is around $96.00 per hr.


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## Salvatoreg02

robnj772 said:


> And you still haven't taken any business classes I see :laughing:


When you make your first million maybe I listen to you.. All you do is critique everyone except yourself. I'll say this over and over again. Arrogance and ignorance get you no where.. You're a one man shop, all of a sudden you think your Allen Greenspan. 
And when your KLEIN screwdriver can buy you an apt on the beach let me know!!

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## Mr Rewire

Salvatoreg02 said:


> When you make your first million maybe I listen to you.. All you do is critique everyone except yourself. I'll say this over and over again. Arrogance and ignorance get you no where.. You're a one man shop, all of a sudden you think your Allen Greenspan.
> And when your KLEIN screwdriver can buy you an apt on the beach let me know!!
> 
> Sent from my iPhone using ET Forum


 Nice screwdriver:thumbup:


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## Cletis

*Hourly*

Some people just like to bitch and complain about everyone but themselves. It's classic sociopath material. 


I don't have a set hourly. Mine fluctuated depending on many factors.

If it's winter and cold and slow and a hot mom call's me up to do ceiling cans I go a little lower, it she is really hot I'd do it for real cheap. 

If the job is in the slums in july and I'm busy I triple my rate. 

If I have to finance the project I go double

I base my hourly on what I pay each guy and how much headache they are. So, if I pay a guy $ 20 hr I usually bill $ 40 hr. Usually 2:1 

Don't you know, I went to the Cletis academy for business.


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## Mike in Canada

I charge $100/hr per man. There's an additional truck charge and whatnot.
When working for my parent company I only charge $75/hr for electrical and $65/hr for mechanical. My personal paycheque doesn't change regardless what I'm doing.


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## dronai

electricmanscott said:


> If you are a one man or a few man shop, no bigger, anything less than $150.00 an hour is working just to live. If you want all the benefits you would likely receive form working for a good company after say about 5 years or so (Good salary, Health, dental, vision, disability, 401k w/match, vacation, sick time, holidays, PTO etc.)you have to get $200.00 an hour plus.. I've run the numbers many times and always come out around $212.00 per billable hour.
> 
> Sent from my computer at my cushy job where I don't have to think about the above anymore. :thumbup:


 

If the base pay for wages is $35/hr $25.00 plus burden/benifits 40%
OH for service is 50% $17.50
profit 40% $21.00
Total Rate $73.50

My area, non union, the wages offered would be $20-30 for J Resid/commer. 


My rate is based on $85/hr, but I shot for $100/hr estimating. 
I think the East Coast, and Hawaii, are much higher than other parts.

Whats missing from my estimate here ?


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## Salvatoreg02

Sparky3 said:


> Hey sal the complete package for a Westschester A-rated journeyman is around $96.00 per hr.


My number was high @ 80 but if you think it's even 96.00 your wrong. A rated is even slightly less then $80
96.00 x 35hrs wk x 52 wks= $174,000
explain to me?
46.75 x 35hrs wk x 52 wks= 85,000
+ benies let's just add for arguments sake 30% + $25000 + $15000 a yr health 
Grand total= $125000
What happen to the $49,000 difference ???

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## Mr Rewire

The basic formula is if you are getting every job you are probably to low if you are not getting any jobs you are probably to high and at the end of the month you are broke you didn't charge enough.:laughing:


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## Mr Rewire

dronai said:


> If the base pay for wages is $35/hr $25.00 plus burden/benifits 40%
> OH for service is 50% $17.50
> profit 40% $21.00
> Total Rate $73.50
> 
> My area, non union, the wages offered would be $20-30 for J Resid/commer.
> 
> 
> My rate is based on $85/hr, but I shot for $100/hr estimating.
> I think the East Coast, and Hawaii, are much higher than other parts.
> 
> Whats missing from my estimate here ?


 do you account for unbillable hours?


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## dronai

Mr Rewire said:


> The basic formula is if you are getting every job you are probably to low if you are not getting any jobs you are probably to high and at the end of the month you are broke you didn't charge enough.:laughing:


 
That is the bottom line !!


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## dronai

Mr Rewire said:


> do you account for unbillable hours?


 

I'm a one man shop these days. Your right, if had a crew, where you had to guarantee 40hrs a week, I can see where you would have average the cost of salaries.


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## Sparky3

Salvatoreg02 said:


> My number was high @ 80 but if you think it's even 96.00 your wrong. A rated is even slightly less then $80
> 96.00 x 35hrs wk x 52 wks= $174,000
> explain to me?
> 46.75 x 35hrs wk x 52 wks= 85,000
> + benies let's just add for arguments sake 30% + $25000 + $15000 a yr health
> Grand total= $125000
> What happen to the $49,000 difference ???
> 
> Sent from my iPhone using ET Forum


your numbers are in the ballpark what I meant is the customer will be paying$96.00 per hr that 49,000 is profit.


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## macmikeman

electricmanscott said:


> If you are a one man or a few man shop, no bigger, anything less than $150.00 an hour is working just to live. If you want all the benefits you would likely receive form working for a good company after say about 5 years or so (Good salary, Health, dental, vision, disability, 401k w/match, vacation, sick time, holidays, PTO etc.)you have to get $200.00 an hour plus.. I've run the numbers many times and always come out around $212.00 per billable hour.
> 
> Sent from my computer at my cushy job where I don't have to think about the above anymore. :thumbup:


This is spot on advice. It ought to be printed onto the dashboard of all the one man shop vehicles so they can see it every day to remind them.

Anybody who took the time to read all thru this thread, if you don't see the wisdom in Scott's post, you are truly lost causes.


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## Salvatoreg02

electricmanscott said:


> If you are a one man or a few man shop, no bigger, anything less than $150.00 an hour is working just to live. If you want all the benefits you would likely receive form working for a good company after say about 5 years or so (Good salary, Health, dental, vision, disability, 401k w/match, vacation, sick time, holidays, PTO etc.)you have to get $200.00 an hour plus.. I've run the numbers many times and always come out around $212.00 per billable hour.
> 
> Sent from my computer at my cushy job where I don't have to think about the above anymore. :thumbup:


Thats if your work is strictly commercial and your doing big work! I would have to agree. " with a lot of down time"

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## Salvatoreg02

Sparky3 said:


> your numbers are in the ballpark what I meant is the customer will be paying$96.00 per hr that 49,000 is profit.


Maybe you miss understood, prevailing rate is less $80.00 an hr that's what you need to bill to cover the min cost of hiring A rated journeymen.

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## Cletis

*Headaches*

Man, I feel sorry for all you guys with those overhead numbers. 

All I need to do is find out of work electricians who need beer and cigarettes and 1099 them. None of that stupid insurance, workmans comp, unemployment stuff. 

I only have to pay from $8hr - $25 per for the range of guys I use and I'm done. I'd get of electric work for sure if I had to go by all those rules and restrictions. 

Cletis


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## robnj772

Salvatoreg02 said:


> When you make your first million maybe I listen to you.. All you do is critique everyone except yourself. I'll say this over and over again. Arrogance and ignorance get you no where.. You're a one man shop, all of a sudden you think your Allen Greenspan.
> And when your KLEIN screwdriver can buy you an apt on the beach let me know!!
> 
> Sent from my iPhone using ET Forum


 


I was being serious about taking business classes. You can't base your hourly rate on union prevaling wage scale you have to use your business plan. Base it on your overhead,expenses,expected profit ETC ETC ETC

Look at your posts above here you have no clue

Are you REALLY a legit contractor or are you a laid off union guy doing sidework?

And WOW your just moving on up there Mr Jefferson .:laughing: 



 
FWI I live on a barrier island in a HOUSE on a lagoon on the bay. By the time your ride that elevator down I'm either out in the inlet heading out for the reef fishing on my boat or I'm up on the beach with the family.

Tell Florence to sign you up for the classes Lightman posted


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## dronai

robnj772 said:


> FWI I live on a barrier island in a HOUSE on a lagoon on the bay. By the time your ride that elevator down I'm either out in the inlet heading out for the reef fishing on my boat or I'm up on the beach with the family.


 

:thumbsup: I like the results of your business plan.


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## brian john

robnj772 said:


> I was being serious about taking business classes. You can't base your hourly rate on union prevaling wage scale you have to use your business plan. Base it on your overhead,expenses,expected profit ETC ETC ETC
> 
> Look at your posts above here you have no clue


Robin...SOMETIMES, It is not what you say, but how you say it.


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## brian john

*FROM 

CITY OF NEW YORK
OFFICE OF THE COMPTROLLER
JOHN C. LIU BUREAU OF LABOR LAW
​OFFICE OF THE COMPTROLLER, CITY OF NEW YORK​​*​ 

*OFFICE OF THE COMPTROLLER, CITY OF NEW YORK*​*§220 PREVAILING WAGE SCHEDULE*​*ADDENDUM 1 EFFECTIVE PERIOD: JULY 1, 2010 THROUGH JUNE 30, 2011 Page 24 of 96*​*PUBLISH DATE: 2/22/2011*​​*Wage Rate per Hour: **$49.00*​*Supplemental Benefit Rate per Hour: **$40.16*​​*Electrician "A" (Day Shift Overtime After 8 hours)*​*Effective Period: 7/1/2010 – 12/31/2010*​*Wage Rate per Hour: **$73.50*​​*Supplemental Benefit Rate per Hour: **$43.48*​*Effective Period: 1/1/2011 - 5/10/2011*​*Wage Rate per Hour: **$73.50*​​*Supplemental Benefit Rate per Hour: **$42.01*​*Effective Period: 5/11/2011 - 6/30/2011*​​*Wage Rate per Hour: **$73.50*​


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## splotchhide

robnj772 said:


> Are you REALLY a legit contractor or are you a laid off union guy doing sidework?


I got Salvatoreg02 beat, I'm an employed union guy doing sidework. But I charge more than many legit contractors (yes, I'm looking at you Magnettica ).



:thumbup:


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## electricmanscott

dronai said:


> I'm a one man shop these days. Your right, if had a crew, where you had to guarantee 40hrs a week, I can see where you would have average the cost of salaries.


How much do you pay yourself? How much are you putting into a <insert retirement plan here>? How much does your company match? How many hours do you "work" every week? How many do you bill? What type of health insurance do you have? How many sick days have you earned? How many weeks of vacation?


If you want to be a one man show and enjoy all the benefits that quality larger companies provide their employees, billing less than $200.00 per hour is not going to make it happen. 

I'm not saying don't "work for yourself" or however you want to put it, I am saying financially over the long term it is a losing proposition if, like me, you work everything by the book. (Taxes, ins etc.)


That's my opinion anyway. I know it sucks to hear but I believe in what I'm saying.


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## Magnettica

splotchhide said:


> I got Salvatoreg02 beat, I'm an employed union guy doing sidework. But I charge more than many legit contractors (yes, I'm looking at you Magnettica ).
> 
> 
> 
> :thumbup:


Big union guy breaking ranks.

What a shocker.

You probably don't even have a license. 

Does your local know you do side work? :no:


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## splotchhide

Magnettica said:


> Big union guy breaking ranks.
> 
> What a shocker.
> 
> You probably don't even have a license.
> 
> Does your local know you do side work? :no:


Screw my local, I'm only in it for the money :thumbsup:


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## Magnettica

Ahh, I see... another troll.


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## robnj772

Magnettica said:


> Ahh, I see... another troll.


 
Yea I think you just got trolled.... :lol:


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## robnj772

splotchhide said:


> I got Salvatoreg02 beat, I'm an employed union guy doing sidework. But I charge more than many legit contractors (yes, I'm looking at you Magnettica ).
> 
> 
> 
> :thumbup:


Yea but the difference is your not posting on the business section acting like your legit.


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## dronai

electricmanscott said:


> How much do you pay yourself? How much are you putting into a <insert retirement plan here>? How much does your company match? How many hours do you "work" every week? How many do you bill? What type of health insurance do you have? How many sick days have you earned? How many weeks of vacation?
> 
> 
> If you want to be a one man show and enjoy all the benefits that quality larger companies provide their employees, billing less than $200.00 per hour is not going to make it happen.
> 
> I'm not saying don't "work for yourself" or however you want to put it, I am saying financially over the long term it is a losing proposition if, like me, you work everything by the book. (Taxes, ins etc.)
> 
> That's my opinion anyway. I know it sucks to hear but I believe in what I'm saying.


 
I Agree with all your saying here.


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## splotchhide

Magnettica said:


> Ahh, I see... another troll.


Lighten up buddy, I'm only messing with you :thumbsup:


BTW, I might actually go against my rebellious side and get my license this year. I've been avoiding it for a long time, saying "Screw the man, I'll do as I please!". But I think it's finally time.


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## Mr Rewire

Magnettica said:


> Ahh, I see... another troll.


And we all know from where.:whistling2:


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## Salvatoreg02

splotchhide said:


> Screw my local, I'm only in it for the money :thumbsup:


Yeah!!!

Sent from my iPhone using ET Forum


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## splotchhide

Mr Rewire said:


> And we all know from where.:whistling2:


Northern NJ.


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## Mr Rewire

splotchhide said:


> Northern NJ.


 retread :jester:


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## The Lightman

splotchhide said:


> Northern NJ.


Did it stop raining yet? Last Saturday, I spent 14 hrs. at that darn airport, planes couldn't land due to the crosswind. They finally canceled my flight around 1.30AM. I had to fly to West Palm, rent a car and drive home. 
Never mind, just looked at the Rahway 5 day, forecast. It's 88 and sunny here, no more wondering where you get those attitudes.


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## splotchhide

The Lightman said:


> Did it stop raining yet? Last Saturday, I spent 14 hrs. at that darn airport, planes couldn't land due to the crosswind. They finally canceled my flight around 1.30AM. I had to fly to West Palm, rent a car and drive home.
> Never mind, just looked at the Rahway 5 day, forecast. It's 88 and sunny here, no more wondering where you get those got attitudes.


We had a couple dry days but now it's raining again 

How was your trip?


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## splotchhide

Mr Rewire said:


> retread :jester:


Yeah, cause Mr Rewire isn't a "retread" of Rewire.


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## The Lightman

splotchhide said:


> How was your trip?


So far, The Philips Lighting Application Center was by far the best ran, organized hand on and well taught light school I've been to yet. Check their schedule, go with Ron. Some very cool hands on comparing two lamp strips from T-12 to T-5 with light meter and watt meter readings.
I could talk all day to you about CRI and kelvin temperatures and you still may not 'get it. Go sit in one of the cushy chairs in Somerset, the LC instructors push a button, the chairs rotate to the next scene and from 3600k to 5600k in a row against wood grain, then a blue background, then white and you'll understand.
I touched a $10 million light bulb. That's what it took to go for the D.O.E. L prize. 
*60W Incandescent Replacement Lamp* 


More than 90 lm/W
Less than 10 watts
More than 900 lumens
More than 25,000 hour life
More than 90 CRI
Between 2700–3000 K CCT
 http://www.lightingprize.org/overview_60watt.stm

Next month, I'll be in MA. to attend Sylvania's Lightpoint. http://www.sylvania.com/LearnLighting/LIGHTPOINT/LIGHTPOINTUS/


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## robnj772

Mr Rewire said:


> And we all know from where.:whistling2:


 
And we ALL know who you are :whistling2:


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## Magnettica

robnj772 said:


> Yea I think you just got trolled.... :lol:


I got TROLLED! :laughing: :rolling:


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## Magnettica

Speaking of trolls... what a pain in the ass they are. 

Hey Mods... why can't you just ban IP addresses? 

Problem solved.


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## splotchhide

Magnettica said:


> Speaking of trolls... what a pain in the ass they are.
> 
> Hey Mods... why can't you just ban IP addresses?
> 
> Problem solved.


They did that to me a couple times, I simply changed my IP. For people who don't have that luxury, they can use a proxy.

Problem unsolved :thumbsup:


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## Magnettica

splotchhide said:


> They did that to me a couple times, I simply changed my IP. For people who don't have that luxury, they can use a proxy.
> 
> Problem unsolved :thumbsup:


I just sold a panel change. Cutler Hammer 42-circuit, new grounding system, breaker identification, permit and inspection included. '


$26,350.87 :thumbsup:


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## Magnettica

splotchhide said:


> They did that to me a couple times, I simply changed my IP. For people who don't have that luxury, they can use a proxy.
> 
> Problem unsolved :thumbsup:


You can't just randomly "change" your IP address. 

Nice try, dummy.


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## splotchhide

Magnettica said:


> You can't just randomly "change" your IP address.
> 
> Nice try, dummy.


Yes, I can. There are multiple methods.

Before calling me a dummy, you should know what you are talking about first.

If you would like, I would explain how to do it, but I have a feeling you will just deny it out of ignorance :thumbsup:


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## Rudeboy

Magnettica said:


> $26,350.87 :thumbsup:




Wouldn't happen to be a very old lady would it?
:whistling2:


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## Dennis Alwon

splotchhide said:


> They did that to me a couple times, I simply changed my IP. For people who don't have that luxury, they can use a proxy.
> 
> Problem unsolved :thumbsup:


That's the great thing about trolls they always give themselves up. They always have to show their ugly faces.


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## gold

Magnettica said:


> You can't just randomly "change" your IP address.
> 
> Nice try, dummy.


You can proxy. You can also clone your mac or change your bios to end around hash bans. It makes banning pretty pointless. Every script kiddy on the net has a program that will do it with a few clicks too.


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## Magnettica

Rudeboy said:


> Wouldn't happen to be a very old lady would it?
> :whistling2:



She's very old. :laughing:


I also threw in a doorbell chime replacement for free. It's a good deal. :thumbsup:


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## Magnettica

splotchhide said:


> Yes, I can. There are multiple methods.
> 
> Before calling me a dummy, you should know what you are talking about first.
> 
> If you would like, I would explain how to do it, but I have a feeling you will just deny it out of ignorance :thumbsup:




You can explain it to me and i would read it, but you calling me ignorant is a joke. You, NOT ME, is the one who has been asked to leave multiple time. It's obvious you have more than a few personal issues. Apparently you get upset and feel the need to get in the last word. Normal people when they are asked to leave; leave. You kindly **** yourself now thank you.


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## Rudeboy

Magnettica said:


> She's very old. :laughing:
> 
> 
> I also threw in a doorbell chime replacement for free. It's a good deal. :thumbsup:


B4T is gonna have a conniption over this.
:thumbup:


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## Mr Rewire

robnj772 said:


> And we ALL know who you are :whistling2:


 and you wish you were me .:whistling2:


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## Mr Rewire

splotchhide said:


> They did that to me a couple times, I simply changed my IP. For people who don't have that luxury, they can use a proxy.
> 
> Problem unsolved :thumbsup:


 If you want to retread its pretty easy to do even banning an IP wont stop the truly desperate.


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## Gamit

Wow all I wanted was some ideas of what I should be charging. And look what it turned in to 

Sent from my iPhone using ET Forum


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## Dennis Alwon

I agree. Lets get back on topic guys.

Here is Gamit's OP



> At what rate are you billing your guys out for residential work? I know everyone has different expenses overhead,etc I'm just trying to get a feel on where I should be. Please let me know what part of the state you reside because obviously this plays a big roll. Mechanic and Apprentice


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## Magnettica

It's a generic question that's been asked numerous times before. Good thing there's a formula. 

I figured out my hourly rate like this.

Annual Overhead - $102,000.00 (salary, insurance, tools, vehicles, accountant, lawyer fees, deadbeats who don't pay, etc, etc)... and NO I'm not kidding about the deadbeat allowance. 

Billable Hours - 1500 (this number is different for everybody so keeping detailed records is very important so if you're not doing this already start doing it today). 

Non-Billable Hours will be more than your billable hours so account for them accordingly. 

Overhead/ Billable Hours = hourly rate

$102,000/ 1500 = 68


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## HARRY304E

Magnettica said:


> It's a generic question that's been asked numerous times before. Good thing there's a formula.
> 
> I figured out my hourly rate like this.
> 
> Annual Overhead - $102,000.00 (salary, insurance, tools, vehicles, accountant, lawyer fees, deadbeats who don't pay, etc, etc)... and NO I'm not kidding about the deadbeat allowance.
> 
> Billable Hours - 1500 (this number is different for everybody so keeping detailed records is very important so if you're not doing this already start doing it today).
> 
> Non-Billable Hours will be more than your billable hours so account for them accordingly.
> 
> Overhead/ Billable Hours = hourly rate
> 
> $102,000/ 1500 = 68


Good work....:thumbup:


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## Magnettica

Thanks Harry, I try. I haven't even come close to 1500 billable hours yet though. :no: But that doesn't mean I'm not still trying.


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## Magnettica

Also, see you could only have 1,000 billable hours and that number goes up dramatically. 

$102,000/ 1000 = $102/ hour.

I believe this is where the "big guys" can kill us all with pricing. Because they have a "plethora" (Hello BBQ) of billable hours they can actually do the job cheaper than some of the newer EC's.


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## macmikeman

Magnettica said:


> Also, see you could only have 1,000 billable hours and that number goes up dramatically.
> 
> $102,000/ 1000 = $102/ hour.
> 
> I believe this is where the "big guys" can kill us all with pricing. Because they have a "plethora" (Hello BBQ) of billable hours they can actually do the job cheaper than some of the newer EC's.


Yea, but you watch the big rollups. They tend to disappear after a while. I think they implode because of too much perks for the suits. On the other hand, what always happens is that another ten big outfits form to take the place of those who fold.


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## Tiger

Magnettica said:


> Thanks Harry, I try. I haven't even come close to 1500 billable hours yet though. :no: But that doesn't mean I'm not still trying.


I suggest you calculate your rate to your actual billable hours. If you set your rate for 1500 hours and only bill 750 you'll lose money as quick as someone who calls the competition for the going rate.


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## Magnettica

Tiger said:


> I suggest you calculate your rate to your actual billable hours. If you set your rate for 1500 hours and only bill 750 you'll lose money as quick as someone who calls the competition for the going rate.


Because if I double what I charge now I won't land as many jobs. They're kinda scarce right now you know.


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## rnr electric

I charge 105 hr for two men,( time starts when they leave for that call) for residential and 135 hr light commercial. some guys are getting around 150 hr


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## Tiger

Magnettica said:


> Because if I double what I charge now I won't land as many jobs. They're kinda scarce right now you know.


I feel your pain but you still might want to be honest with yourself when calculating your break-even.


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## Salvatoreg02

rnr electric said:


> I charge 105 hr for two men,( time starts when they leave for that call) for residential and 135 hr light commercial. some guys are getting around 150 hr


Time starts when they leave so if there stuck in traffic for 2 hrs you bill the customer?

Sent from my iPhone using ET Forum


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## Mr Rewire

Salvatoreg02 said:


> Time starts when they leave so if there stuck in traffic for 2 hrs you bill the customer?
> 
> Sent from my iPhone using ET Forum


 Talk about no repeat customers.:laughing:


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## dronai

Magnettica said:


> Also, see you could only have 1,000 billable hours and that number goes up dramatically.
> 
> $102,000/ 1000 = $102/ hour.
> 
> I believe this is where the "big guys" can kill us all with pricing. Because they have a "plethora" (Hello BBQ) of billable hours they can actually do the job cheaper than some of the newer EC's.


 
My sales are way down, but my overhead is a fixed number ( more or less). That pushed my O/H percentage up to 50%, on top of my wage. I need more sales to bring that O/H number back where it needs to be.


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## jbrookers

rnr electric said:


> I charge 105 hr for two men,( time starts when they leave for that call) for residential and 135 hr light commercial. some guys are getting around 150 hr


Sweet set me up for a service call. I would love to drive to FL right about now!


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## jbrookers

Magnettica said:


> Because if I double what I charge now I won't land as many jobs. They're kinda scarce right now you know.


 It will never be easier to raise your prices then right now.

1. You have fewer customers to lose
2. Your broke anyway (excuse me if I presume...broke is a relative term)
3. You've got less invested in the business to lose
4. You can always go back to charging less
5. You could go bankrupt and get a respectable job


In a couple months you could be telling everyone on ET that you doubled your prices and are still landing calls.


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