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A good question is do any of your staff run their own vehicles? We just went through it with our accountant and found the 45p/mile for the first 10,000 miles is no longer covering costs for some employees with slightly older vehicles, as such we're increasing it.
I knew a guy that took over a company and announced he was going to raise his prices. His Salesmen were shell shocked. He said to them that he was aiming at moving the business towards customers prepared to pay a higher price. The result was a huge uplift in revenue and profits. He said that if the staff didn't value their products accordingly, why would their customers?
Quite agree Paul, I listened to this video, wondering if this would be mentioned. Jordan did mention it and I always thought, that going up market, was the way to go. As it turned out my business flourished. If you turn up in a rusty burnt out old banger of a van, people will judge you by it. Most know this, but don't apply the same principle to their charges. People are comforted when you show up as a professional. You cant do that on cheap charges.
I guess some people charging 20 pounds per hour must be outside london? I work as Multiskilled Engineer and I do not work for less than 25 to 35 pounds per hour and yet I am still strougling to pay my bills.
Lots of good insights here! I've moved towards pricing schemes like half-day/full-day where possible to avoid getting into discussions about how much I charge per hour. The main reason is that a high percentage of customers will look at the clock and question the charges if you're on a time and material scheme. Also, the better you are and the more experience you have, you can solve problems faster and get more done in less time, so charging an hourly rate can work against you if you raise that rate to what you're worth (not to mention you might be worth more than an employee, so charging the same rate for different electricians in a company has to be done carefully).
you also avoid the issue of having to explain yourself to a customer who earns 9.00 and hour and pays you 90.00 for an hour. Billing by the half day/full day or by the job always makes more sense.
@@moonshinepz thats not his fault the customer only earns £9 an hour. Is he supposed to feel guilty? £90 an hour is how much it costs to run a business. People think this is £90 profit an hour.
@@moonshinepz The average Man working for an employer earning $£€ X.00 per hour is totally unaware of what it costs the employer to keep him employed - and the administrative costs in addition to that -- also each employee has to bring in revenue to the business - The employee is a HUMAN RESOURCE - This is why CORPORATIONS have HUMAN RESOURCES departments - The function of the HR Department is a completely new story that is more complex than employees imagine. Some of the biggest expenses in any business is carrying the inventory of materials including Office supplies... Advertising costs - signwriting - uniforns - safety equipment This requires substantial investment - that is not earning interest or any return until SOLD. Also - there is a cost to Materials handling and inventory management -- This expense has to be recovered - also one must take into account for damaged stock - obsolete stock - and shrinkage -- An employee does not have to worry about any of those.
Just wanted to chip in as "a consumer" I've had "work done" like a full re-wire, a new bathroom, and a loft-conversion (incl. dormer, bathroom). Big jobs, where you want a quoted price (if only so you know if you can afford it, and pay the invoice when it arrives). Never went cheapest, always took personal recommendations - but my 'happiness' has been 'mixed' Only job I am unequivocally satisfied with, was the loft conversion, and that's the one that went way, way over the original quote. Why I'm happy, is that alongside the quote and the breakdown of work that made up that initial quote - it also included a specific list of exclusions. It also listed some potential extra items - e.g. "If we need to extend the fuseboard, it's £x". Then whilst the major work was happening, they'd flag up non-quoted tasks that they thought needed to be done. Leading that needed replacing (backed up with a photo showing a 1/2" gap"), and they gave fair prices. Or "That roof only has a few years left without re-battening" (and I climbed up and agreed) Job cost more than I'd expected, but I've fixed issues that would have bitten me, for way less than it would cost somebody putting up scaffolding a year later. Converse might be my bathroom fitting - I noticed a load of collapsed bricks when they pulled out the old plasterboard and had to ask them/pay them to fix it before they put the new board up (which they had just started doing). Fully aware I hadn't paid for them to do that work - but it needed to be done. I'm also a bit salty I didn't ask them to rebuild/level the floor - as that's still a problem and annoying me. Hadn't paid them to do that, do they didn't - but in hindsight would have been cheaper than now it's covered in porcelain. Sorry, written way more than I meant to. I think the summary is: 1) I will never start work on an hourly rate, for anything that might stray into the thousands - you're the expert, so should be able to give me a rough quote. 2) I don't want an unqualified fixed price. Neither you nor I know what's lurking within my house. I don't want you to pad your quote 'just in case' - or worse yet ignore issues that could be fixed easily, as they're not on the contract.
It would be great if there were a Jordan Farley for each of the trades! He is so clear in explanation and takes things at just the right pace so it can be understood.
What you spoke about was very accurate, I worked for a couple of years in the signage industry - before eventually ending in teaching English and history- All this after a 30-year MILITARY career - that began with the RAF -- Anyways- the owner of the signage business (now deceased) was a very pleasant pleasant and astute Irish businessman *Thus is in Sydney - New South Wales - I am speaking of. Besides learning the Signage Industry business - joining some related organizations - Undertaking a 2 year part-time College course in Signcraft and Graphic Design (Which later led me to a teaching career) - I also took a 3-month full-time Business Management course -- One of the best things I ever did -- Adding to that - a Risk Management diploma I studied for during my MILITARY career - other studies were Law - Psychology and Electronics and Electro-Mechanical Engineering. For any business, it is essential one write a business plan, Which includes much of what is mentioned in this video presentation. All the operating costs and expenses have to be tabled --such as insurance(s) - wages- salaries - stock depreciation - losses due to theft and damage - Accountants Fees - Various licensing and association fees -- Trade periodicals - contributions to Staff training - etc. Vehicle operating costs -- A profit and Loss statement must be completed - This is essential It is also essential to keep track of Cash flow -- COMMERCE is under Admiralty Maritime Law -- This is where we get the terms Cash Flow - Liquid assets - Bank - Bankruptcy - Currency the current runs to the Sea - between the Banks - and when the banks rupture (Bankruptcy) the flow ceases. And one is Dam Broke. The thing to know id =s not to worry about what other business operators charge -- One has to do the calculations for one's own business -- Some business owners without experience or business training will reduce prices out of desperation -- That is like drilling a hole in your ship -- The business will sink. To keep the business afloat - one must raise the prices - and it takes courage - to concentrate on the 20% of the clients that bring in 80% of the business -- Leave the difficult customers to someone else Be sure to provide a professional level of service - train the employees - create an incentive rewards program for employees - undertake periodic client surveys -- Feedback is valuable information - even negative feedback -- It is how one learns and improves. And always pay attention to detail -- I learned that as a pilot decades ago. Failure to pay attention to detail will cause one's early demise.
Interesting Video, I'm in Ontario Canada. Here I'm a member of the "Ontario Electrical League" which is an electrical contractor group, every year they survey the members and release a report on average hourly rates by area and industry. Also minimum charges and other billable items. its very help full to figure out where you stack in your area.
Hello Jordan, just found this and I love the direct and transparent philosophy. You are a credit to the industry which I have just re-joined. Of course i've hit the like button and subscribed! Surely I would be mad not to! I will look forward to checking out some more content when I'm here on RUclips. Many thanks and keep up the great work :)
This video made me smile, I had my own Electrical business in the U.K. and now Retired in Thailand I still keep my hand in doing various Electrical work for friends and friends of friends, just done a shop rewire No main fuse no fuse board power supplied from overhead line to meter then a 20 amp switch then wired to sockets and lights totally dangerous, I see many electrical horror stories here. My daily rate here is £34 a day lol. 4 days £ 136 lol. For these prices I don’t do too much. I’d dream of £200 a day. Good luck everyone. Still love being on the tools.
I know the answer to this. I really do. It is always "at least £30,000". Full house rewire: £30,000 PV Solar Panel install: £35,000 Now where's my prize?
Pricing is always an issue that causes a lot of chatter. For us (an IT business) our pricing is set on what it costs, plus a sensible margin that can sustain the business. We’ve never been the cheapest out there, but we’re not the most expensive. We work hard to provide good value - which is not the same as “lowest price”. Our policy is also to quote the best price we can do a job for first time around. No haggling possible, no nonsense inflated prices for those who don’t ask for a better one. If someone doesn’t want to pay the price we quote, that is fine, they can go elsewhere. That’ll be the same for Jordan I’m sure. As he says, the reality is customers are happily rocking up. Also, it is my experience that if you price yourself at a level above the base you’ll avoid dealing with those who are endlessly after the “cheapest price” but still expect the “best service”. What I would be interested in is how Jordan delivers on the “5 star electricians” tag line - what is it he feels they do that justifies that tag line - not something he has explained (as far as I recall), because also that may also account for the pricing decision.
I live and work in Spain, and let me tell you, there are illegitimate tradesmen charging for a day, what you are charging for an hour. The problem with that is, clients think that is the going rate - some retired friends of ours told me that the Spanish will work for 50 euros a day! Part of the reason we're coming back to the Uk - I've worked for 2 years straight with no holidays, and barely covered my business expenses. I appreciate your videos as well Jordan, they are an inspiration to run your business in the correct manner.
Totally surprised me with increased value. Thought it was going to be a lot higher, due to the sheer size that the company has grown in the past year alone. Great insight and also a great value for money.
The company I worked for in Oz very rarely discussed hourly rates with customers because the customer that wants an hourly rate is not the customer you want as Jordan points out so we priced every single job, down to replacing a power point, ie 15 minutes max, so every item on a quote was itemised down to the smallest degree. You have to be 100% confident in your pricing for every job you go to. You should also use a Labour Rate Calculator to work out your hourly rate.
@@knockmore50 Rubbish. Australia is drowning with cowboys and shonky trades. Most companies and sole traders have no clue how to run a business. Especially in Sydney. Jordan is a benchmark on how to run a business. How is he a robber?
Great video Jordan. Most trades go into business because they think they can do the job better than their old boss, with no regard for the business side of being self employed. The do great and make a ton of cash. It all unravels when the expenses start climbing.
Hi Jordan, the prices in London will vary because some areas a more affluent than others, so for example, you could not charge £50 an hour in Walthamstow because people wouldn't pay it.
I find my customers will pay a fair rate , as long as when or if they have to call you out, ( you'll call back ) they'll pay,, , I charge a very low rate,, £45 call out includes 1st hour, I+ £20 an hour, I only work locally, thats why I don't own a Tesla motor. Your a fab company and give great service too. Have a great future. 👍
In the 1970's when I lived in the UK as a Dental Technician it was very common for clients/dentist to try to get you to give them a 2.5% to 5% discount for prompt payment I would not do this so I lost some dentist (they were always slow each month with payments ) but my businesses did not suffer in fact I had more clients each month came close to a heart attack went to Australia for a quieter life and restore my health
I’m sorry guys but I got a quote from you three weeks ago for a small consumer unit in a small flat and you quoted me £1600 all in. I got DS electrical (Cambridge) to quote and they quoted me£700 all in. I went with DS electrical after doing some background checks, and they did a wonderful job neat and tidy wiring full testing and certificate at the end. So a big thumbs up to DS electrical.
Sounds about right, to be honest. Justifying high prices on the basis that the job is done properly, is pathetic. Like any other job, you either do it right or wrong. A shoddy tradesman shouldn't be the barometer to set prices against. It's poor for customers, as some can't afford work for necessary repairs when it's at such a high price, so do they go for someone who is potentially shit, or does the problem worsen because they can't afford a tradesman who can do the job properly, as they've priced themselves too high.
@@nickhornby704 What you’re saying only makes sense if there is no competition. There is plenty of competition in the electrician market, so those customers can choose someone else. The justification for “high prices” isn’t whether Artisan do a good job vs someone else, it’s simply “can they do a good job and be a sustainable business at the price they charge” - they have to balance that against customer demand, and as Jordan has said, no demand issue.
@@SquirreliciousMe What I'm saying is based on the fact there are other people out there in the trade, so they're all competing, to an extent. An anology would be that you wouldn't ask your boss for a payrise for just doing your job properly on the basis that someone else who isn't doing there job properly.......that other person should be fired. Practices like mentioned on previous comment, are very anti-customer.
So two sparks ( both fully qualified) working in a house( say a rewire ) for a week ( 5 days ) comes to £8880 labour only….am I missing something here 🤔
If any one employs you after watching this I will be amazed. If I work a 5 day week I expect to earn about a grand in the bank after tax. Out of that grand believe it or not I pay for my own diesel, insurances/tools etc.
@@techscrew2 Thats probably about fair... But do you drive around in fancy new vans and a tesla car? In all seriousness obviously in Cambridge there are lots of people with more money than sense, or there is a massive shortage of sparkies.. I think there are a lot of cowboys out there and with his youtube videos you know at least he will do a half decent job, obviously people are willing to pay for that piece of mind maybe.. This is perpetuated by the constant drivel that somehow Artisan electrics does something no other sparkie can which is complete rubbish..
This is a very interesting video, I kind of really respect you for being so open about this. However Jordan, Ill be honest these prices can only be charged in affluent areas. Where I live 80 Quid an hour just would not work. I price against bigger contractors who are charging 37.50 - 45 per hour, I could guarantee that charging £80 would result in my work drying up completely totally. Apart from actually keeping up with all the regulations etc, its unbelievably hard running a business and keeping everybody happy.
A simple way on how to charge... it's all down to work load and demand! If im charging 50-80 an hour but someone wants to push in line... Then i would charge them 100 an hour and guessing roughly how long i can get the job done in. Clients are aware how busy i may be, no one put a gun to anyone's head, if they want to pay max, i am at their service (if i can put it into schedule.)
With regard to the info about loss of business after putting up prices. consider this. If you did 1 hours work for 100 customers at £50ph you'd have £5000. Add 10% making £55ph would be £5500. Loose 10% customers (not 25%) so 10 people, making 90 people x £55ph would be £4950. £50 loss. The sheet suggested 25% loss of customers.
In Italy typically you have electricians and plumbers that range between 30€-50€/h if you go higher you loose the job with private customers. With companies they can ask between 100-150€/h because they can get back the VAT. In Sweden normal fares are 50-60€/500-600 Swedish kronas per hour for private customers and 150€-200€/1500-2000 Swedish kronas per hour for companies.
Between £240 and £280 a day me and an apprentice mainly domestic with 10-20% commercial in the midlands and I really need to increase as prices are going up on everything! I've been running since 2009 and should be a lot bigger by now. I'd like to see a realistic spreadsheet for the midlands, shropshire area :) Great video mate
Do the electricians who work for u get a % of that hourly rate or are they on a salary/their own hourly rate? If so… how much do they get paid? Is it JIB rate or company rate?
I don't offer a day rate service as such. The difference of what I can do in 8 hours and what the next guy can do in 8 hours could be vast. The idea that value for money is associated with time spent on the job is a very unfortunate reality. Would you rather pay a call out and have the problem fixed in 15 minutes or have the problem fixed in 15 minutes + 45 minutes of me watching guides on RUclips of how to make mountains out of mole hills because an hour of me being on site is 'worth' paying the call out.
You must calculate it as you are just a regular PAYE employee in your own business 365 days a year, 2022 has 250 working days out of which, and you should be entailed to 5.6 week holiday that is 28 days. So you are left with 222 days. Account for seven sick days at full pay, and you have 215 days to make your salary. If you want to be on 46K a year, that will give you after taxes 33.800 take home. Wich is just over £2.8k a month take home. Meaning you have 215 days a year, presuming you are working five days a week, solid 8h of work with one/h break after the first four hours, you have 1720 hours a year to earn you £46K. That's 26.7/h if you pay someone's salary or yourself.. Then you can keep calculating you overheads profits etc., with let say, 3-5h a month of training toolbox talks on your overheads expenses and profit, and you must charge on top of that. To offer a good reliable service, you can't be paying less than £22 before tax. You most likely must charge 120% to 150% on top of that to cover your overheads, profits, project management etc. with more than five guys working for you, you might be able to charge less than 120% mark-up and go down to 70% on 4th and 5th worker. Truth be told to offer this type of pay, you cant be a team of 2 or 4 sparks. You won't get enough solid work to be able to keep up. You definitely won't be a PAYE employer looking for an employee who just need to show up as you would provides tools, van etc. You will be looking for CIS contractors where you pay 20% tax on their agreed daily or hourly pay, and you are not going to offer any benefits, just statutory where apply. You will expect whoever will show up to have a toll bag and equipment. If you run a business with £5M+ turnover, you might be looking for employees, but you'll be scared of liability, and most likely, you will stick to CIS contractors on zero-hours contracts because it's safer. It is pretty much the reality of these days. You won't see on Linkedin highlights with "employes" saying Jack been with Mace for 18 years as an apprentice than decorator and transition after training to Carpenter" it's all "professionals, not tradesman workers." Working for contractors that are small-time builders etc, more often, you will be looking for someone trying to force you cash in hand to save themself tax and be able to undercut the competition on taxes etc.
Kitchen and bathroom fitter for yrs ---packed it in / retired early, solely because of JOE PUBLIC wanted it cheap--oh and telling me it's only take a day or so. Right --well do it yourself. I'm happy in myself, I made the right decision, I offered a good service. worried about the job, wanted to do a great job. I have my life back.
I’m in Cheshire, we do commercial gas repairs and charge a call out of £100 inc the first hour and then £50 an hour thereafter for as long as it takes but on average my engineers do 5 jobs a day and not much goes over an hour
Price per job I believe is very personal or per hour...And where you live is a huge factor....I've lived all over the UK and 3 or 4 different countries....For example London is the biggest hourly rate/per job...Followed closely by surrounding counties...Midlands for instance is about 70% less per job/hourly rate.. In order to grow the company you do have to invest in it...Becoming profitable is paramount to that...
There is a fine line between being expensive and ripping people off and unfortunately I think in places you are crossing that line. Two of your guys taking a day to wire those ten downlights in a hallway works out at over £2000, that is a ridiculous price (it’s not even a two man job for starters). That’s a job that costs £160/200 roughly in materials and at a guess £300/320 in labour paid to your guys with £1500 plus profit. You could charge half that and still be making a massive profit. Charging £112.50 per hour for a one off job or even fault finding isn’t an issue but to not discount it over a day or per job is crazy money. It honesty amazes me that people are happy to pay for it. Perceived value is one thing, but for your local competitors who answer the phone, quote in a timely manner, turn up when they say they will and have a good after sales service and charge half as much - what else do you provide that they don’t? The fact that their home may be on a You tube video? Don’t want to come across as a dick, but I’d genuinely like to know!
How many sparks do you know who turn up at your door in custom £55k electric vans and drive a Tesla ? It's the customer paying for all the toys hence the prices. To me it's just trying to be flashy with the van when a normal caddy van would be suitable. Perhaps Jordan next time he's looking at all those batteries in the flashy van,might want to think about where all the cobalt comes from to make them, little kids being put down tiny mine shafts in Congo to collect Cobalt and loads of little kids injured and been killed doing so. All available and easy to find. If someone quoted me £2k to wire 10 downlights I'd just burst out laughing and walk them to the door.
Great content Jordan as always. Moving forward as a growing successful business, this always need managing year to year so your business insight is great especially with inflation around the corner. 👍🏽
I think £40 an hour is reasonable, i honestly don’t think I’d get any work if I started charging more than that, especially in the current state of things.
I had a play with my pricing last year. Put prices up by about 3% for various jobs. Put the price up, work fell off a cliff. There are 'Electricians' putting in for jobs that are over 60 miles away and they can do it cheaper? They come from London to do jobs in my area. 90 quid EICR, and the customers think this is a legit price? Dont get to do many EICR,s at my price of £190.
@@adambarnes2136 How can they unless its an hypothetical EICR, generic paperwork already filled out. Stick a socket tester in, which on one job I went too, when I asked what this bloke had done, they sais he didnt plug anything into the sockets and was only there 1\2 hour. Do a few of those 90 quid eicr's a day, you're in the money. What do customers know, except it's cheaper than me.
We are based in SE London/ Kent , we've actually been inline with Artisan as we charge an hourly rate. However, its a very tricky time to up costs. Yes OUR outgoings have gone up but so has everyone's but on top of that payrises and bonuses have been frozen in a lot of sectors due to the pandemic. So it's a real gamble to up your proces right now. We have been £80ph + vat for probably 8yrs, for a small team we have a respectable profit. I personally don't think its the right time for an increase, let people get back on their feet first. The general public have just come out of a pandemic and been hit with massive utility bills and inflation costs, they don't need tradesman hiking costs up immediately aswell.
Sure / if that makes sense for you. But your costs will have risen in 8 years just in inflation and basic employment costs and pensions alone. So in real terms you’ve become cheaper and unless you’ve been able to offset those things in savings elsewhere are working harder for less money. If that’s cool for you then that’s fine. It seems a some people here think you’re overcharging at £80 though as the alleged “average” is half that. I’m assuming you don’t think you’re ripping anyone off or anti-consumer? You’ve just determined £80 makes sense for your business right?
I think the one man bands are not putting their prices up so I think its a wise move, as the bigger the gap becomes between the two the more risk of less work.. Plus everyone knows a squeeze on income is coming so all those new extensions and kitchens etc paid for by the pandemic by not going out, working from home etc will all dry up and I think people will be doing the bare essentials.. Maybe still work in EV installations and Solar..
No wonder, if you’ve got away with charging £80 plus vat an hour for the last 8 years you’ve done rather well….if you were struggling to make profit as you are even in this current climate you would be doing something wrong 😂👍🏼
Great video Jordan! Those guys with charging £260 Per day should just work foe someone else instead of damaging the market! We charge in London £150 for first hour and then £100 including vat. Thanks again!
I’m based in Stoke. I’m currently pondering my pricing. It’s at £200 but the area is flooded with a lot of dead wood that charge diy prices and people either don’t care or can’t see the justification in paying more. I’m going up to £250. I’m not saturated with work, with only being around for 18 months but I think it’s justified for me to do.
I’m in the same area and it’s full of folk working out the boot of a car for 100 a day doing a shit job,, I try and go for 200-250 a day but don’t win every job.
ignore Artisans prices or some of the other youtubers, £250 a day is a fair price, like you say there are an abundance of domestic sparks, I don't think you will lose that much work but being a bit cheaper, there is no point in trying to compete with the cowboys but also don't take the p^^s
With that rate I’d expect no bs with cameras or if you are filming a reduction. Prices are about 30 gbp per hour more than competent electricians outside of london
Thanks Jordan for all the great insights.👌🏼 You openness shows your honesty & pride in your business. Thanks for a great video.👍🏼 Your company is one of the best electrician companies out there. I look forward to watching your video's & to learn something new.😉
Nothing drives up costs more than government regulations. There are only one person that pays for regulatory burden and a business corporation tax bill…… THE CUSTOMER. Same goes for the congestion charge, fuel, parking etc. Think about that next time when you want government to tax or regulate things. A business gets its money from the customers and when the hassle/money isn’t worth the effort, people go and do other things for a living. The reward has to be worth it. Turns out, being a decent electrician requires a bit of brain power. Brain power is always in demand and those with it can switch to other things. Inflation is another government caused phenomenon. They are stealing people’s savings, wages and all round purchasing power. Government doesn’t produce anything, everything it has was taken via tax or inflation (creating new currency and diluting the existing supply).
My issues with is with companies although being told on social media of what needs doing being told "DM me" instead of quoting. puts me right off that company straight away.
I used websites like mybuilder and Checkatrade to build my client base from scratch around 4 years ago. And have now had a turnover of 80k+ a year for the past few years. It's a hard graft but it pays off!
Round my way the accepted dogma is non registered trades get 120-160 a day and registered trades get 200-250 a day. I charge £300 a day for site work for my usual main contractors and £65 an hour if I'm out Jobbing for randomers.
@@blip7978 lots of people trying it on at the moment. I've picked up loads of new business where the plumbers have tried to up their prices to £4-500 for a 9 to 4 day on renovation jobs and got booted off site.
Hello there, FJK Electrical in Manchester here. Would there be any chance of sharing the speadsheet to us so we can do a comparison and use the speadsheet tools please? Would help us out so much as we are looking to revise our prices. Very informative and well edited video, thanks so much.
Great video Jordan...am I being to simplistic here is the £93.75p per hour for the team to visit a job, because sometimes you have 2 qualified Electricians and Apprentice and a camera man...Yes you are getting a video out of it, but it’s very manpower intensive...or are video jobs not worked out on your normal hourly rate. Cheers Paul
good video Jordan, we work in a similar area as you know and I'm surprised that my prices are pretty similar to yours. I will consider the business course, cheers
I love being an electrician. I moved to Australia and worked in maintenance and installation on a major mine site. I find electrical work so stressful with the responsibility of safety etc. I feel sparkies deserve good money for this reason. Update. I can't stand being an electrician anymore. Hahah
I charge 90 per hour. , .( London ). Have for a while , years ago I charged 25 a hour in the 80s ( less in the 70s ).it’s about your job , how well you can do it costs. Of mat , parking etc etc. I work at the top end have for many years , and this is my last ( as I retire in august )…yes the job has changed over the years , and it will continue to .. but my ideas never as a young man I planned my life , like everyone else you get your ups and downs , but there is no secret to it you just keep on improving your work , and yourself you never stop learning ..and never stop believing in yourself …..
Interested to know if you would go back into same career and if not which career? Also what approx networth do you feel you have accumulated (approx) over all the years?
In Australia I am charging $120 an hour AUD or 70 pound an hour, some charging up to 90-100 pound an hour or $150-180 an hour, so comparative between counties.
@@knockmore50 that is criminal for a big city, take my hat off to you. I was working in Brisbane at the time so a lot more tradies in the mines nearby and no one to do domestic!
I think some people are mixing up hourly rates which are charged and hourly rates paid . A main dealer might charge you £150ph to fix your car but they pay their mechanic £18ph
correct .. but the when the mecanic needs an electricitan .. he has to pay de 93 pound /hour with his 18 pound/hour rate .. so he has to work 5 hours .. to pay 1 hour to Artisan Business ..why pay his electrician with that and business expenses(van/diesel/accounting etc ) ... this is how the world works : -) So i get the frustation of many peaople .. even 40-50 pound an hour is expensive to pay for a consumer... that makes 18 pound an hour :p
Anything over £250 a day is ridiculously expensive, especially when materials aren't included. It's easy to understand why so many people do it themselves
Some interesting points. I’m not an electrician but have taken in a lot of useful advice from this video and am definitely upping my prices after thinking about what you said with taking profit
So I am thinking of starting up on my own I have been doing some of my own jobs for a joiner friend of mine and other small jobs and also some houses for a friend who is doing property development, for some time. The houses have been quite a high spec, the last one sold for close to £800,000 had led feature lighting downlights, hanging kitchen and living room lights from a high ceiling was a lot of work, and was done to a high standard which I think all electricians should work too but sadly not all do. I am in Cheshire and a lot of the work I have done is for people in nice houses which have good jobs, if I start up on my own I was thinking I should be charging £250-£300 a day but looking at what some people say should I be charging more just wondering? I have been an electrician for about 14 years and mainly do commercial and some industrial and some domestic most of the domestic has been mainly for myself, would love some help on pricing if anyone does work around here what do you charge.
Yes,well give me a way to make a profit when the customer says you are to expensive if you ever try to make a profit!In the end you have nothing,no work and no money..
I’m a carpenter in Canada. I disregard how much the other guys charge. I don’t know what quality of work they do, therefore I’m in the dark to know if my price is good. All I care about is am not busy enough (I reduce my price), or am I too busy (I raise my price). Ideally, I want to work 40 hours a week but in reality I’ll work 60 hours one week and 20 the next week because work is not consistent. I don’t panic if I only work 20 hours because I already did a 60 hours week just before that and I can use some free time ;) Cheers !
Is this including the standing around, looking at the mobile phone.. taking 3 or 4 tea breaks... Nipping to the trade counter for spares... Urr ooops that a plumber 😂😂 seriously.. if you're a bigger business..who employes 8+ staff.. you have to charge those ridiculous prices as you need to pay your staff. This is why people do the labour themselves to cut down cost, and get it certified.
How do you charge for an EV? You plus apprentice so £93x2 per hour the job takes? Or is the apprentice party of the business overhead like the admin team?
Just come across this video and enjoy your content but £750 for an 8 hour day😮, goes to show do your research people and find a reliable competent one person business, you obviously complete high standard work but I don't want to be paying for your overheads and employees in the background when I can get the same standard of work from a one man band with no overheads
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A good question is do any of your staff run their own vehicles? We just went through it with our accountant and found the 45p/mile for the first 10,000 miles is no longer covering costs for some employees with slightly older vehicles, as such we're increasing it.
All the Sparks have a company van 👍
I knew a guy that took over a company and announced he was going to raise his prices. His Salesmen were shell shocked. He said to them that he was aiming at moving the business towards customers prepared to pay a higher price. The result was a huge uplift in revenue and profits. He said that if the staff didn't value their products accordingly, why would their customers?
Quite agree Paul, I listened to this video, wondering if this would be mentioned. Jordan did mention it and I always thought, that going up market, was the way
to go. As it turned out my business flourished. If you turn up in a rusty burnt out old banger of a van, people will judge you by it. Most know this, but don't apply the same principle to their charges. People are comforted when you show up as a professional. You cant do that on cheap charges.
I guess some people charging 20 pounds per hour must be outside london? I work as Multiskilled Engineer and I do not work for less than 25 to 35 pounds per hour and yet I am still strougling to pay my bills.
Lots of good insights here! I've moved towards pricing schemes like half-day/full-day where possible to avoid getting into discussions about how much I charge per hour. The main reason is that a high percentage of customers will look at the clock and question the charges if you're on a time and material scheme. Also, the better you are and the more experience you have, you can solve problems faster and get more done in less time, so charging an hourly rate can work against you if you raise that rate to what you're worth (not to mention you might be worth more than an employee, so charging the same rate for different electricians in a company has to be done carefully).
you also avoid the issue of having to explain yourself to a customer who earns 9.00 and hour and pays you 90.00 for an hour. Billing by the half day/full day or by the job always makes more sense.
@@moonshinepz thats not his fault the customer only earns £9 an hour. Is he supposed to feel guilty? £90 an hour is how much it costs to run a business. People think this is £90 profit an hour.
@@moonshinepz
The average Man working for an employer earning $£€ X.00 per hour is totally unaware of
what it costs the employer to keep him employed - and the administrative costs in addition
to that -- also each employee has to bring in revenue to the business -
The employee is a HUMAN RESOURCE -
This is why CORPORATIONS have HUMAN RESOURCES departments -
The function of the HR Department is a completely new story that is more
complex than employees imagine.
Some of the biggest expenses in any business is carrying the inventory of materials
including Office supplies... Advertising costs - signwriting - uniforns - safety equipment
This requires substantial investment - that is not earning interest or any return until SOLD.
Also - there is a cost to Materials handling and inventory management -- This expense has
to be recovered - also one must take into account for damaged stock - obsolete stock -
and shrinkage --
An employee does not have to worry about any of those.
@@andrew_koala2974 yes, I know. I ran a business with staff and premises for 27 years.
This way seems so much more easier and fair for us, Moving forward I’ll Be doing this. Thanks 😅
Just wanted to chip in as "a consumer"
I've had "work done" like a full re-wire, a new bathroom, and a loft-conversion (incl. dormer, bathroom). Big jobs, where you want a quoted price (if only so you know if you can afford it, and pay the invoice when it arrives).
Never went cheapest, always took personal recommendations - but my 'happiness' has been 'mixed'
Only job I am unequivocally satisfied with, was the loft conversion, and that's the one that went way, way over the original quote.
Why I'm happy, is that alongside the quote and the breakdown of work that made up that initial quote - it also included a specific list of exclusions. It also listed some potential extra items - e.g. "If we need to extend the fuseboard, it's £x".
Then whilst the major work was happening, they'd flag up non-quoted tasks that they thought needed to be done. Leading that needed replacing (backed up with a photo showing a 1/2" gap"), and they gave fair prices. Or "That roof only has a few years left without re-battening" (and I climbed up and agreed)
Job cost more than I'd expected, but I've fixed issues that would have bitten me, for way less than it would cost somebody putting up scaffolding a year later.
Converse might be my bathroom fitting - I noticed a load of collapsed bricks when they pulled out the old plasterboard and had to ask them/pay them to fix it before they put the new board up (which they had just started doing). Fully aware I hadn't paid for them to do that work - but it needed to be done.
I'm also a bit salty I didn't ask them to rebuild/level the floor - as that's still a problem and annoying me. Hadn't paid them to do that, do they didn't - but in hindsight would have been cheaper than now it's covered in porcelain.
Sorry, written way more than I meant to.
I think the summary is:
1) I will never start work on an hourly rate, for anything that might stray into the thousands - you're the expert, so should be able to give me a rough quote.
2) I don't want an unqualified fixed price. Neither you nor I know what's lurking within my house. I don't want you to pad your quote 'just in case' - or worse yet ignore issues that could be fixed easily, as they're not on the contract.
It would be great if there were a Jordan Farley for each of the trades!
He is so clear in explanation and takes things at just the right pace so it can be understood.
I'm a gas engineer and I loved this video. As this can be applied to all trades. I want more like this.. keep them coming..
Glad you found it useful, we'll be doing a lot more like this now we have the studio.
Thanks Jordan this has just given me the kick up the arse to raise my prices to a level I should be charging.
What you spoke about was very accurate,
I worked for a couple of years in the signage industry - before eventually ending in
teaching English and history- All this after a 30-year MILITARY career - that began
with the RAF --
Anyways- the owner of the signage business (now deceased) was a very pleasant
pleasant and astute Irish businessman *Thus is in Sydney - New South Wales - I am
speaking of.
Besides learning the Signage Industry business - joining some related organizations -
Undertaking a 2 year part-time College course in Signcraft and Graphic Design (Which
later led me to a teaching career) - I also took a 3-month full-time Business Management
course -- One of the best things I ever did -- Adding to that - a Risk Management diploma
I studied for during my MILITARY career - other studies were Law - Psychology and
Electronics and Electro-Mechanical Engineering.
For any business, it is essential one write a business plan,
Which includes much of what is mentioned in this video presentation.
All the operating costs and expenses have to be tabled --such as insurance(s) - wages-
salaries - stock depreciation - losses due to theft and damage - Accountants Fees -
Various licensing and association fees -- Trade periodicals - contributions to Staff training - etc.
Vehicle operating costs --
A profit and Loss statement must be completed - This is essential
It is also essential to keep track of Cash flow --
COMMERCE is under Admiralty Maritime Law --
This is where we get the terms Cash Flow - Liquid assets - Bank - Bankruptcy - Currency
the current runs to the Sea - between the Banks - and when the banks rupture (Bankruptcy)
the flow ceases. And one is Dam Broke.
The thing to know id =s not to worry about what other business operators charge --
One has to do the calculations for one's own business -- Some business owners without
experience or business training will reduce prices out of desperation -- That is like drilling
a hole in your ship -- The business will sink.
To keep the business afloat - one must raise the prices - and it takes courage - to concentrate
on the 20% of the clients that bring in 80% of the business --
Leave the difficult customers to someone else
Be sure to provide a professional level of service - train the employees - create an incentive
rewards program for employees - undertake periodic client surveys --
Feedback is valuable information - even negative feedback -- It is how one learns and
improves.
And always pay attention to detail -- I learned that as a pilot decades ago.
Failure to pay attention to detail will cause one's early demise.
Interesting Video, I'm in Ontario Canada. Here I'm a member of the "Ontario Electrical League" which is an electrical contractor group, every year they survey the members and release a report on average hourly rates by area and industry. Also minimum charges and other billable items. its very help full to figure out where you stack in your area.
Hello Jordan, just found this and I love the direct and transparent philosophy. You are a credit to the industry which I have just re-joined. Of course i've hit the like button and subscribed! Surely I would be mad not to! I will look forward to checking out some more content when I'm here on RUclips.
Many thanks and keep up the great work :)
This video made me smile, I had my own Electrical business in the U.K. and now Retired in Thailand I still keep my hand in doing various Electrical work for friends and friends of friends, just done a shop rewire No main fuse no fuse board power supplied from overhead line to meter then a 20 amp switch then wired to sockets and lights totally dangerous, I see many electrical horror stories here. My daily rate here is £34 a day lol. 4 days £ 136 lol. For these prices I don’t do too much. I’d dream of £200 a day.
Good luck everyone. Still love being on the tools.
I know the answer to this. I really do. It is always "at least £30,000".
Full house rewire: £30,000
PV Solar Panel install: £35,000
Now where's my prize?
Pricing is always an issue that causes a lot of chatter. For us (an IT business) our pricing is set on what it costs, plus a sensible margin that can sustain the business. We’ve never been the cheapest out there, but we’re not the most expensive. We work hard to provide good value - which is not the same as “lowest price”. Our policy is also to quote the best price we can do a job for first time around. No haggling possible, no nonsense inflated prices for those who don’t ask for a better one. If someone doesn’t want to pay the price we quote, that is fine, they can go elsewhere. That’ll be the same for Jordan I’m sure. As he says, the reality is customers are happily rocking up. Also, it is my experience that if you price yourself at a level above the base you’ll avoid dealing with those who are endlessly after the “cheapest price” but still expect the “best service”. What I would be interested in is how Jordan delivers on the “5 star electricians” tag line - what is it he feels they do that justifies that tag line - not something he has explained (as far as I recall), because also that may also account for the pricing decision.
That book changed my life! Best thing I ever did! I read it during lockdown and it was the best thing I ever did Great video Jordan
I live and work in Spain, and let me tell you, there are illegitimate tradesmen charging for a day, what you are charging for an hour. The problem with that is, clients think that is the going rate - some retired friends of ours told me that the Spanish will work for 50 euros a day!
Part of the reason we're coming back to the Uk - I've worked for 2 years straight with no holidays, and barely covered my business expenses.
I appreciate your videos as well Jordan, they are an inspiration to run your business in the correct manner.
That's crazy ... payed in cash no invoice lol
Totally surprised me with increased value. Thought it was going to be a lot higher, due to the sheer size that the company has grown in the past year alone. Great insight and also a great value for money.
The company I worked for in Oz very rarely discussed hourly rates with customers because the customer that wants an hourly rate is not the customer you want as Jordan points out so we priced every single job, down to replacing a power point, ie 15 minutes max, so every item on a quote was itemised down to the smallest degree. You have to be 100% confident in your pricing for every job you go to.
You should also use a Labour Rate Calculator to work out your hourly rate.
jordon is a robber would not survive here in Australia !!!
dont think so mate here the average is $85 to $90 = 50 pound a hour
@@knockmore50 Rubbish. Australia is drowning with cowboys and shonky trades. Most companies and sole traders have no clue how to run a business. Especially in Sydney. Jordan is a benchmark on how to run a business. How is he a robber?
@@knockmore50 what part of Australia? We charge $150 an hour in Sydney and thats average. You must be in whoop whoop mate.
Great video Jordan. Most trades go into business because they think they can do the job better than their old boss, with no regard for the business side of being self employed. The do great and make a ton of cash. It all unravels when the expenses start climbing.
Its an absolute ballache when you local patch is flooded with the same trade and almost every person in this area wants everything for nothing.
Hi Jordan, the prices in London will vary because some areas a more affluent than others, so for example, you could not charge £50 an hour in Walthamstow because people wouldn't pay it.
They live by candle light then. Oh and it’s payment up front.
I find my customers will pay a fair rate , as long as when or if they have to call you out, ( you'll call back ) they'll pay,, , I charge a very low rate,, £45 call out includes 1st hour, I+ £20 an hour, I only work locally, thats why I don't own a Tesla motor. Your a fab company and give great service too.
Have a great future. 👍
As much as can get. When the work drys up and your sitting waiting, no one else pays your bills.
In the 1970's when I lived in the UK as a Dental Technician it was very common for clients/dentist to try to get you to give them a 2.5% to 5% discount for prompt payment I would not do this so I lost some dentist (they were always slow each month with payments ) but my businesses did not suffer in fact I had more clients each month came close to a heart attack went to Australia for a quieter life and restore my health
yes aussie land is great mate
I’m sorry guys but I got a quote from you three weeks ago for a small consumer unit in a small flat and you quoted me £1600 all in.
I got DS electrical (Cambridge) to quote and they quoted me£700 all in.
I went with DS electrical after doing some background checks, and they did a wonderful job neat and tidy wiring full testing and certificate at the end.
So a big thumbs up to DS electrical.
Was that just a board change or other work too?
I find it hard to believe they were that much more expensive
Sounds about right, to be honest. Justifying high prices on the basis that the job is done properly, is pathetic. Like any other job, you either do it right or wrong. A shoddy tradesman shouldn't be the barometer to set prices against. It's poor for customers, as some can't afford work for necessary repairs when it's at such a high price, so do they go for someone who is potentially shit, or does the problem worsen because they can't afford a tradesman who can do the job properly, as they've priced themselves too high.
@@nickhornby704 What you’re saying only makes sense if there is no competition. There is plenty of competition in the electrician market, so those customers can choose someone else. The justification for “high prices” isn’t whether Artisan do a good job vs someone else, it’s simply “can they do a good job and be a sustainable business at the price they charge” - they have to balance that against customer demand, and as Jordan has said, no demand issue.
@@SquirreliciousMe What I'm saying is based on the fact there are other people out there in the trade, so they're all competing, to an extent.
An anology would be that you wouldn't ask your boss for a payrise for just doing your job properly on the basis that someone else who isn't doing there job properly.......that other person should be fired. Practices like mentioned on previous comment, are very anti-customer.
So two sparks ( both fully qualified) working in a house( say a rewire ) for a week ( 5 days ) comes to £8880 labour only….am I missing something here 🤔
Yeah it might take longer than 5 days... Genuine question when on a job does the time filming count as time onsite billable to the customer?
Would NOT EMPLOY YOU
@@grahamturner6119 👌😂
If any one employs you after watching this I will be amazed. If I work a 5 day week I expect to earn about a grand in the bank after tax.
Out of that grand believe it or not I pay for my own diesel, insurances/tools etc.
@@techscrew2 Thats probably about fair... But do you drive around in fancy new vans and a tesla car? In all seriousness obviously in Cambridge there are lots of people with more money than sense, or there is a massive shortage of sparkies.. I think there are a lot of cowboys out there and with his youtube videos you know at least he will do a half decent job, obviously people are willing to pay for that piece of mind maybe.. This is perpetuated by the constant drivel that somehow Artisan electrics does something no other sparkie can which is complete rubbish..
This is a very interesting video, I kind of really respect you for being so open about this. However Jordan, Ill be honest these prices can only be charged in affluent areas. Where I live 80 Quid an hour just would not work. I price against bigger contractors who are charging 37.50 - 45 per hour, I could guarantee that charging £80 would result in my work drying up completely totally. Apart from actually keeping up with all the regulations etc, its unbelievably hard running a business and keeping everybody happy.
Thanks for your comment Mark.
A simple way on how to charge... it's all down to work load and demand! If im charging 50-80 an hour but someone wants to push in line... Then i would charge them 100 an hour and guessing roughly how long i can get the job done in. Clients are aware how busy i may be, no one put a gun to anyone's head, if they want to pay max, i am at their service (if i can put it into schedule.)
We've had lots of client holding back on development due to price rise. Could have a massive impact on the construction industry...
Intrigued to know what the employees get paid
Well Cory keeps going on holiday, so must not be too bad lol... Did he end up paying for that door himself in the end?
Lots of speculation here. My speculation rate is $137.50 per hour.
And thats exactly why so many people try to do it themselves, with prices like that you cant blame them
I am glad I am an Electrician myself, because I could never afford to hire one.
With regard to the info about loss of business after putting up prices. consider this. If you did 1 hours work for 100 customers at £50ph you'd have £5000.
Add 10% making £55ph would be £5500.
Loose 10% customers (not 25%) so 10 people, making 90 people x £55ph would be £4950. £50 loss. The sheet suggested 25% loss of customers.
@Artisan id love a chat about control systems intergrators pricing, Siemens PLC AND MOTION Drives specilists that do machine installs, what prices?
In Italy typically you have electricians and plumbers that range between 30€-50€/h if you go higher you loose the job with private customers. With companies they can ask between 100-150€/h because they can get back the VAT. In Sweden normal fares are 50-60€/500-600 Swedish kronas per hour for private customers and 150€-200€/1500-2000 Swedish kronas per hour for companies.
Artisan electrical, Fighting against the race to the bottom, great video!
Understatement of the year 😂
Between £240 and £280 a day me and an apprentice mainly domestic with 10-20% commercial in the midlands and I really need to increase as prices are going up on everything! I've been running since 2009 and should be a lot bigger by now. I'd like to see a realistic spreadsheet for the midlands, shropshire area :) Great video mate
Glad I am a retired electrician
Glad I don't have to employ you I couldn't afford that what pensioner could
@@grahamturner6119 couldn't afford me or Artisan?
@@jonathanstephens7804 would not employ artisan electrics at all after doing electrics all my life ,// I better off than that
@@jonathanstephens7804 no don't want a crap job sooner do it myself
Do the electricians who work for u get a % of that hourly rate or are they on a salary/their own hourly rate? If so… how much do they get paid? Is it JIB rate or company rate?
A very good question.
It'll be a salary or day rate.
Do the employee's take the losses when a customer doesn't pay??.
Stumbled across this one by chance. Really helpful as I am just starting out. Thank you.
I don't offer a day rate service as such. The difference of what I can do in 8 hours and what the next guy can do in 8 hours could be vast. The idea that value for money is associated with time spent on the job is a very unfortunate reality. Would you rather pay a call out and have the problem fixed in 15 minutes or have the problem fixed in 15 minutes + 45 minutes of me watching guides on RUclips of how to make mountains out of mole hills because an hour of me being on site is 'worth' paying the call out.
You must calculate it as you are just a regular PAYE employee in your own business 365 days a year, 2022 has 250 working days out of which, and you should be entailed to 5.6 week holiday that is 28 days. So you are left with 222 days. Account for seven sick days at full pay, and you have 215 days to make your salary. If you want to be on 46K a year, that will give you after taxes 33.800 take home. Wich is just over £2.8k a month take home.
Meaning you have 215 days a year, presuming you are working five days a week, solid 8h of work with one/h break after the first four hours, you have 1720 hours a year to earn you £46K. That's 26.7/h if you pay someone's salary or yourself..
Then you can keep calculating you overheads profits etc., with let say, 3-5h a month of training toolbox talks on your overheads expenses and profit, and you must charge on top of that. To offer a good reliable service, you can't be paying less than £22 before tax. You most likely must charge 120% to 150% on top of that to cover your overheads, profits, project management etc. with more than five guys working for you, you might be able to charge less than 120% mark-up and go down to 70% on 4th and 5th worker.
Truth be told to offer this type of pay, you cant be a team of 2 or 4 sparks. You won't get enough solid work to be able to keep up. You definitely won't be a PAYE employer looking for an employee who just need to show up as you would provides tools, van etc. You will be looking for CIS contractors where you pay 20% tax on their agreed daily or hourly pay, and you are not going to offer any benefits, just statutory where apply. You will expect whoever will show up to have a toll bag and equipment.
If you run a business with £5M+ turnover, you might be looking for employees, but you'll be scared of liability, and most likely, you will stick to CIS contractors on zero-hours contracts because it's safer. It is pretty much the reality of these days.
You won't see on Linkedin highlights with "employes" saying Jack been with Mace for 18 years as an apprentice than decorator and transition after training to Carpenter" it's all "professionals, not tradesman workers."
Working for contractors that are small-time builders etc, more often, you will be looking for someone trying to force you cash in hand to save themself tax and be able to undercut the competition on taxes etc.
Kitchen and bathroom fitter for yrs ---packed it in / retired early, solely because of JOE PUBLIC wanted it cheap--oh and telling me it's only take a day or so. Right --well do it yourself. I'm happy in myself, I made the right decision, I offered a good service. worried about the job, wanted to do a great job. I have my life back.
Another informative video, thanks for sharing. I totally agree with you. That spreadsheet is certainly food for thought!
I’m in Cheshire, we do commercial gas repairs and charge a call out of £100 inc the first hour and then £50 an hour thereafter for as long as it takes but on average my engineers do 5 jobs a day and not much goes over an hour
Price per job I believe is very personal or per hour...And where you live is a huge factor....I've lived all over the UK and 3 or 4 different countries....For example London is the biggest hourly rate/per job...Followed closely by surrounding counties...Midlands for instance is about 70% less per job/hourly rate..
In order to grow the company you do have to invest in it...Becoming profitable is paramount to that...
Tough to call as wages in general has not increased significantly
You charge more than Pimlico , villa in Marbella soon.
Pimlico charge £100 , keeps £50 and pays £50 to engineer
There is a fine line between being expensive and ripping people off and unfortunately I think in places you are crossing that line. Two of your guys taking a day to wire those ten downlights in a hallway works out at over £2000, that is a ridiculous price (it’s not even a two man job for starters). That’s a job that costs £160/200 roughly in materials and at a guess £300/320 in labour paid to your guys with £1500 plus profit. You could charge half that and still be making a massive profit. Charging £112.50 per hour for a one off job or even fault finding isn’t an issue but to not discount it over a day or per job is crazy money. It honesty amazes me that people are happy to pay for it. Perceived value is one thing, but for your local competitors who answer the phone, quote in a timely manner, turn up when they say they will and have a good after sales service and charge half as much - what else do you provide that they don’t? The fact that their home may be on a You tube video? Don’t want to come across as a dick, but I’d genuinely like to know!
How many sparks do you know who turn up at your door in custom £55k electric vans and drive a Tesla ? It's the customer paying for all the toys hence the prices. To me it's just trying to be flashy with the van when a normal caddy van would be suitable. Perhaps Jordan next time he's looking at all those batteries in the flashy van,might want to think about where all the cobalt comes from to make them, little kids being put down tiny mine shafts in Congo to collect Cobalt and loads of little kids injured and been killed doing so. All available and easy to find. If someone quoted me £2k to wire 10 downlights I'd just burst out laughing and walk them to the door.
Maybe we should all buy his course as well….then we could justify the prices 😂
Good honest presentation which applies to all businesses.
Great content Jordan as always. Moving forward as a growing successful business, this always need managing year to year so your business insight is great especially with inflation around the corner.
👍🏽
Hi there, great video!
It would be great to hear about wages for employees. Does this also go up along side the business prices?
I think £40 an hour is reasonable, i honestly don’t think I’d get any work if I started charging more than that, especially in the current state of things.
Liam we are often the ones that hold ourselves back, look at the value you provide and don’t be afraid to charge appropriately, good luck
I had a play with my pricing last year. Put prices up by about 3% for various jobs. Put the price up, work fell off a cliff. There are 'Electricians' putting in for jobs that are over 60 miles away and they can do it cheaper? They come from London to do jobs in my area. 90 quid EICR, and the customers think this is a legit price? Dont get to do many EICR,s at my price of £190.
@@magnavolt8800 fuck are those guys actually making money? 😂
@@adambarnes2136 How can they unless its an hypothetical EICR, generic paperwork already filled out. Stick a socket tester in, which on one job I went too, when I asked what this bloke had done, they sais he didnt plug anything into the sockets and was only there 1\2 hour. Do a few of those 90 quid eicr's a day, you're in the money. What do customers know, except it's cheaper than me.
We are based in SE London/ Kent , we've actually been inline with Artisan as we charge an hourly rate. However, its a very tricky time to up costs. Yes OUR outgoings have gone up but so has everyone's but on top of that payrises and bonuses have been frozen in a lot of sectors due to the pandemic. So it's a real gamble to up your proces right now. We have been £80ph + vat for probably 8yrs, for a small team we have a respectable profit. I personally don't think its the right time for an increase, let people get back on their feet first. The general public have just come out of a pandemic and been hit with massive utility bills and inflation costs, they don't need tradesman hiking costs up immediately aswell.
Sure / if that makes sense for you. But your costs will have risen in 8 years just in inflation and basic employment costs and pensions alone. So in real terms you’ve become cheaper and unless you’ve been able to offset those things in savings elsewhere are working harder for less money. If that’s cool for you then that’s fine. It seems a some people here think you’re overcharging at £80 though as the alleged “average” is half that. I’m assuming you don’t think you’re ripping anyone off or anti-consumer? You’ve just determined £80 makes sense for your business right?
I think the one man bands are not putting their prices up so I think its a wise move, as the bigger the gap becomes between the two the more risk of less work.. Plus everyone knows a squeeze on income is coming so all those new extensions and kitchens etc paid for by the pandemic by not going out, working from home etc will all dry up and I think people will be doing the bare essentials.. Maybe still work in EV installations and Solar..
No wonder, if you’ve got away with charging £80 plus vat an hour for the last 8 years you’ve done rather well….if you were struggling to make profit as you are even in this current climate you would be doing something wrong 😂👍🏼
Comparing hourly rates is a nonsense really. We all know people that do far less work in an hour than others
Great video Jordan! Those guys with charging £260 Per day should just work foe someone else instead of damaging the market! We charge in London £150 for first hour and then £100 including vat.
Thanks again!
If this isn't an advert for learning to do a few things for yourself then I don't know what is.
Those prices may apply to London area, here in Yorkshire your lucky to get £200/day, try charge more and you will be sat at home all day
A tin of beans is 11p and a pint of beer £1.19 in Yorkshire.
@@Gymreview84 I wish !!!!
I’m based in Stoke. I’m currently pondering my pricing. It’s at £200 but the area is flooded with a lot of dead wood that charge diy prices and people either don’t care or can’t see the justification in paying more.
I’m going up to £250. I’m not saturated with work, with only being around for 18 months but I think it’s justified for me to do.
I’m in the same area and it’s full of folk working out the boot of a car for 100 a day doing a shit job,, I try and go for 200-250 a day but don’t win every job.
just lost a flat rewire in stoke was outpriced on £2800 for a 1 bed. Didn't want the job that much though was a shit hole lol
@@jonathanstephens7804 madness. Why would you do it for less than that. It’s crazy around here sometimes.
ignore Artisans prices or some of the other youtubers, £250 a day is a fair price, like you say there are an abundance of domestic sparks, I don't think you will lose that much work but being a bit cheaper, there is no point in trying to compete with the cowboys but also don't take the p^^s
If your not flooded with work with low prices then you aint going to get work raising the price i would suspect.
With that rate I’d expect no bs with cameras or if you are filming a reduction. Prices are about 30 gbp per hour more than competent electricians outside of london
Using a profit first certified accountant helps too, I get a monthly video call with mine
This video is super mate love this! it's key on point👉 even nearly a year later!
Fantastic video ! Very helpful indeed! Thanks 👍
Thanks Jordan for all the great insights.👌🏼 You openness shows your honesty & pride in your business. Thanks for a great video.👍🏼 Your company is one of the best electrician companies out there. I look forward to watching your video's & to learn something new.😉
Nothing drives up costs more than government regulations.
There are only one person that pays for regulatory burden and a business corporation tax bill…… THE CUSTOMER.
Same goes for the congestion charge, fuel, parking etc.
Think about that next time when you want government to tax or regulate things. A business gets its money from the customers and when the hassle/money isn’t worth the effort, people go and do other things for a living. The reward has to be worth it.
Turns out, being a decent electrician requires a bit of brain power. Brain power is always in demand and those with it can switch to other things.
Inflation is another government caused phenomenon. They are stealing people’s savings, wages and all round purchasing power. Government doesn’t produce anything, everything it has was taken via tax or inflation (creating new currency and diluting the existing supply).
good luck !! keep the family together
My issues with is with companies although being told on social media of what needs doing being told "DM me" instead of quoting. puts me right off that company straight away.
Artisan? More like ArtiScam! £93.75 + VAT?? Wtf!!
Thank goodness my electrician works out of his car.
Be interested to know what you charge for a standard rewire of a 3 bed semi
seems like i'm way undercharging and probably one of them idiots driving the trade into the ground without realising.
You're not "driving the trade into the ground" - you're potentially just undercharging for your skills & expertise. That isn't the same thing.
I'm curious as to how you start getting customers as a self-employed electrician?
I used websites like mybuilder and Checkatrade to build my client base from scratch around 4 years ago. And have now had a turnover of 80k+ a year for the past few years. It's a hard graft but it pays off!
Round my way the accepted dogma is non registered trades get 120-160 a day and registered trades get 200-250 a day. I charge £300 a day for site work for my usual main contractors and £65 an hour if I'm out Jobbing for randomers.
What part of the Country are you in?
@@blip7978 North Wales
@@griffithsheating Cheers. I'm Cotswolds and similar price.
@@blip7978 lots of people trying it on at the moment. I've picked up loads of new business where the plumbers have tried to up their prices to £4-500 for a 9 to 4 day on renovation jobs and got booted off site.
Hello there, FJK Electrical in Manchester here. Would there be any chance of sharing the speadsheet to us so we can do a comparison and use the speadsheet tools please? Would help us out so much as we are looking to revise our prices. Very informative and well edited video, thanks so much.
If you raise prices more n more people will DI Y themselves
Great video Jordan...am I being to simplistic here is the £93.75p per hour for the team to visit a job, because sometimes you have 2 qualified Electricians and Apprentice and a camera man...Yes you are getting a video out of it, but it’s very manpower intensive...or are video jobs not worked out on your normal hourly rate. Cheers Paul
Not to mention the RUclips pays them as well... Their not doing too bad😂
Electricians in the Gloucestershire area still charging around £25 per hour
good video Jordan, we work in a similar area as you know and I'm surprised that my prices are pretty similar to yours.
I will consider the business course, cheers
I love being an electrician. I moved to Australia and worked in maintenance and installation on a major mine site.
I find electrical work so stressful with the responsibility of safety etc.
I feel sparkies deserve good money for this reason.
Update. I can't stand being an electrician anymore. Hahah
I charge 90 per hour. , .( London ). Have for a while , years ago I charged 25 a hour in the 80s ( less in the 70s ).it’s about your job , how well you can do it costs. Of mat , parking etc etc. I work at the top end have for many years , and this is my last ( as I retire in august )…yes the job has changed over the years , and it will continue to .. but my ideas never as a young man I planned my life , like everyone else you get your ups and downs , but there is no secret to it you just keep on improving your work , and yourself you never stop learning ..and never stop believing in yourself …..
Interested to know if you would go back into same career and if not which career? Also what approx networth do you feel you have accumulated (approx) over all the years?
My man Jordan uping his prices giving the guys on the tools a payrise, top bloke 👏 be interesting to know what the engineers are on 👀
Rumour has it £160 not too long ago 👀
@@sunshine3187 A day. thats not bad.
The lads probably won’t get a sniff
Sometimes worth looking at the mean rather than the average. Give you an idea where your price sits across the area price spread
Very good idea, also compare your prices to people in your area not London prices..
In Australia I am charging $120 an hour AUD or 70 pound an hour, some charging up to 90-100 pound an hour or $150-180 an hour, so comparative between counties.
crazy prices mate !! here in melbourne around $85 per hour other wise no return business !
@@knockmore50 that is criminal for a big city, take my hat off to you. I was working in Brisbane at the time so a lot more tradies in the mines nearby and no one to do domestic!
I think some people are mixing up hourly rates which are charged and hourly rates paid . A main dealer might charge you £150ph to fix your car but they pay their mechanic £18ph
correct .. but the when the mecanic needs an electricitan .. he has to pay de 93 pound /hour with his 18 pound/hour rate .. so he has to work 5 hours .. to pay 1 hour to Artisan Business ..why pay his electrician with that and business expenses(van/diesel/accounting etc ) ... this is how the world works : -) So i get the frustation of many peaople .. even 40-50 pound an hour is expensive to pay for a consumer... that makes 18 pound an hour :p
Great video . Very interesting.
You forgot the Pringles outlay 😂😂😂😂😃😃👍🏻👏🏻
Anything over £250 a day is ridiculously expensive, especially when materials aren't included. It's easy to understand why so many people do it themselves
Quality is remembered long after the price is forgotten
Some interesting points. I’m not an electrician but have taken in a lot of useful advice from this video and am definitely upping my prices after thinking about what you said with taking profit
Glad it was helpful!
Just a quick one how much do you charge for the apprentice per hour ?
Wouldn't it be better to use a non VAT registered business and not pay VAT as a non-commercial customer ?
Excellent video. Many thanks.
So I am thinking of starting up on my own I have been doing some of my own jobs for a joiner friend of mine and other small jobs and also some houses for a friend who is doing property development, for some time. The houses have been quite a high spec, the last one sold for close to £800,000 had led feature lighting downlights, hanging kitchen and living room lights from a high ceiling was a lot of work, and was done to a high standard which I think all electricians should work too but sadly not all do. I am in Cheshire and a lot of the work I have done is for people in nice houses which have good jobs, if I start up on my own I was thinking I should be charging £250-£300 a day but looking at what some people say should I be charging more just wondering? I have been an electrician for about 14 years and mainly do commercial and some industrial and some domestic most of the domestic has been mainly for myself, would love some help on pricing if anyone does work around here what do you charge.
Yes,well give me a way to make a profit when the customer says you are to expensive if you ever try to make a profit!In the end you have nothing,no work and no money..
I only charge £200 a day and find domestic customers will bulk at more
£200 a day. What's the point in working for yourself at that money
Where are you,London? and what do you charge?
@@martinlewis967 Birmingham. You can get that just working agency
I’m a carpenter in Canada. I disregard how much the other guys charge. I don’t know what quality of work they do, therefore I’m in the dark to know if my price is good.
All I care about is am not busy enough (I reduce my price), or am I too busy (I raise my price). Ideally, I want to work 40 hours a week but in reality I’ll work 60 hours one week and 20 the next week because work is not consistent. I don’t panic if I only work 20 hours because I already did a 60 hours week just before that and I can use some free time ;)
Cheers !
You should watch the video again and learn. If you want to be "busy" you can do stuff for free...
Is this including the standing around, looking at the mobile phone.. taking 3 or 4 tea breaks... Nipping to the trade counter for spares... Urr ooops that a plumber 😂😂 seriously.. if you're a bigger business..who employes 8+ staff.. you have to charge those ridiculous prices as you need to pay your staff.
This is why people do the labour themselves to cut down cost, and get it certified.
How do you charge for an EV? You plus apprentice so £93x2 per hour the job takes? Or is the apprentice party of the business overhead like the admin team?
We have a separate rate for Apprentice and Electricians mate.
Take a chep tradesmen and problems have gratis that's how its work
How much do you charge out ,1st 2nd an 3rd year apprentice. 🤔
John. Ireland
I found this bloody fascinating, and I'm not even an electrician or a business owner!
Always look forward to your videos, nice one mate.
Just come across this video and enjoy your content but £750 for an 8 hour day😮, goes to show do your research people and find a reliable competent one person business, you obviously complete high standard work but I don't want to be paying for your overheads and employees in the background when I can get the same standard of work from a one man band with no overheads
Great video. I'm wayyyyy too cheap. Are you hourly price per guy to is it a spark and lad?