Electrician Pricing - How Much Should You Charge?
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- Опубликовано: 28 окт 2020
- Electrician Pricing - How Much Should You Charge?
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Jordan, a brilliant Vlog!! I’ve made the mistake of low pricing to get the work, especially in the early days of starting my business, but you end up running yourself into the ground for very little reward. Don’t be afraid of walking away if the customer doesn’t like your price is my advice to everyone.👍👍
I totally agree! Great comment.
As someone with some experience with sourcing contractors, you actually end up losing jobs by either being the cheapest or by lowering the quoted price. You either look lower quality or you look like you were just trying to rinse money out of the customer.
Totally agree
We made the same mistake in our business. I just wish we had this guidance a while back. Jordan posted some very good points that we have now implemented in our business model. The result: more customers, better customers and less dealing with ‘tyre kickers’.
👍👍👍
What a guy sharing this. So
Much respect for you Jordan. Especially willing to state the hourly fee.
Well why should it be a secret. ?
When I'm called for a job to a new customer, one of the first thing I mention is my hourly rate, trip cost and CoC cost. It puts people at ease. If it's about a consequent job then I provide a quote to help them with their budget. Of course you don't provide a quote to hang a chandelier or replace a faulty switch...
Absolutely great video I’ve been in the trade for 16 years had an business on the side of being employed but I’m thinking of going by myself full time and must say I can relate and learn from your videos.
Thanks
Excellent video Jordon quite shocked at the pricing but really opens my eyes a little. I've ran my own business since 2009 and don't charge anywhere near half what you do. Really great to see the money is out there just need the right business plan and ditch all the builders I work for lol :)
Charging these rates is good for the industry. It creates a precedent and ensures that electricians are respected within the building trade. Some people don’t understand what it’s like to be an electrician. It can be highly stressful, require extensive knowledge and holds much responsibility, just as much as a doctor or a pilot. Thank you for charging £80.00 per hour.
Well said!
I agree
"Yeah, but my mate says it's easy to do that little job, there's videos on RUclips showing you how to do it. He's coming to help me do it at the weekend"
How many times have you heard that? (And forget trying to explain the law, Part P, blah blah, we all know that counts for nothing.)
I hear it all the time, along with people TELLING me how much cable/fittings etc are - from Screwfix, of course. The fact I would rather use a known industry standard brand than some cheap Chinese tut is beyond them. I have to say too, that I've been left having to agree that the cheap Screwfix consumer unit I poo-poo'd actually did all line up, didn't break when fitted and was perfectly fine, and really was 1/3 of the price of the Hager unit I wanted to use.
@@Mr.MFuckingYTchangedmyname what you said in your first paragraph is not the customer you want anyway.
@Lister Smeg Oh, silly me, of course, everyone is well up on working out volt-drop on cable, power factor correction, earth loop impedance, safe disconnection times, etc etc, aren't they? I'm sure most people would know exactly how to use a Multi-function tester and what the readings tell them. How hard can it be, right?
Hint, that test equipment doesn't give you a little tick, if you don't know what you are reading, you aren't any the wiser - even if I give you my meters for free (which, of course, I have regularly calibrated - something else to be paid for)
You are mistaking doing something like running a cable from A to B - which indeed, any monkey can do - with the SKILLED part of the job, the bit you go to college to learn, and sit exams to show you do know ie. What is safe to do, and why you can or cannot "just" do these easy jobs.
That's what the customer is paying for - my guarantee that they aren't going to be killed, or have their house burned down, by anything I do to their electrical installation. I might even find something terrible that is waiting to happen and prevent it. It's a guarantee I put my signature on and assume responsibility for.
Sure, most jobs don't take a lot of calculations, and are easy to carry out, but you'd be surprised how many horrors lurk within work carried out by DIYers who clearly have no inkling of why we do certain things. Some will never cause a serious problem, but then there's always that ONE chance you might find yourself in the dock trying to explain how you managed to burn down that orphanage full of screaming infants...
Loving the videos mate. I'm a maintenance technician with a predominantly mechanical background. I have a level 2 2330 and hoping to get fully qualified in the next few years. Your videos are pushing me to crack on with it
Well done Mate for being honest and great to see someone charging their worth.
Jordan, I am really impressed with your channel and how you use it to demonstrate the standard of your work. It must be one of the best marketing strategies. I'm not surprised you are so successful in Cambridge, you deserve it. Well done.
Thanks very much
Another excellent video from, thank you. Your videos are proving really useful and inspiring as I am embarking on my electrical studies.
A great electrician, AND, a fantastic presenter! No wonder he's so sucessful
I am a Gas Engineer / Plumber and this video is amazing. Thank you so much.
Thanks! Glad it helped you.
This was a MASSIVE help. Makes so much sense. Will be watching the whole course at some point. Great job 👍🏻
Excellent glad it helped! Enjoy the course!
Few tips:
1. There is no jobs under one hour (resetting tripped rcd = 1 hour, "call out fee").
2. You charge off site hours as well as onsite hours (picking up materials 0.5h, travel to job site 0.5h, actual job, 2.5h, travel back 0.5h = charge for 4 hours.
3. You charge separately for using van for example 1£/€ per 1km.
Or at least charge workshop hours, there will are jobs when it's easier putting things together at home then just installing them on site.
I’ve been self employed for 25 years, but still enjoyed this vid. Great advice for anyone new to the self employed game.
How long is an electrician course in your country ? University fee ?
Well done for been honest, i enjoy watching your channel as always...
Great job Jordan. Huge lesson for me watching this video to never under value my time and my job. After this video I'm more self-confident that helps become successful. And respect for being honest.
Thanks a lot glad it helped!
Great video, well done for showing the world outgoings. Some thing most sparks don’t understand 🙈
Brilliant Jordan thanks for sharing this it’s really helpful.
Excellent video bud. I’ve Got to put my hands upto you mate, for someone who has told you their daily running cost of their own business. That’s amazing, I don’t even charge half of that and it’s a major eye opener.
Very Agree with you. Great point that you got a goal and were successful. Most important on time and good professional work hourly and schedule. I love your brilliant Vlog!! Thumb up!!! Cheer!
Great video, well done sir. You have given me lots to think about!
Well done like yourself I have never undervalued myself , once your good at what you do you should expect the rewards ..respect your work and your customers .. and you will never go far wrong.. one thing I learned as a young man was do not be a jack of all trades but a master of one .. not to say you cannot or will not pick up other bits of trades I can do plumbing as well but I am not a plumber I can fit kitchens etc but I am not a carpenter etc ... master your own trade. I learned that many years ago ..
It is always refreshing to watch your videos Jordan. Honest, candid and so very well presented.
I just wish you were based closer to SA73 postcode! You would be the electrician of choice. Your work is always so tidy, fixings made good, wiring dressed in tidily and glands, grommets et al loaded in. Love it! Pricing does reflect this no doubt. We run a small business restoring vintage valve amps and speakers and customers just do not appreciate how the final invoice is made up, “Bill will repair the amp in his shed for fifty quid...” So send it to Bill then!!
We have a complex system in our house and actually getting a competent electrician in is a battle! Solar PV with storage and a backup diesel generator all feature in a grid tie system. That scares most electricians away around here! An EV charge point will soon be added. I just wish there was a way for me to mail in pix so you could comment (positive and negative). 20 years in power delivery for cellular operators has taught me a lot but life is still one big learning curve. And your videos contribute greatly, not just with the practical front end work but the back end work too. Thank you.
What a great video
Learnt so much from this
Now I watch every single video of yours
Hi Jordan, Let me say from the start that I'm not an electrician. However I am very technically minded and enjoy doing many DIY activities including , and don't shoot me down in flames some electrical work. I am a qualified person and consider myself to be a competent person. I watch many and varied RUclips channels covering a multitude of personal interests. I do subscribe to your channel and have found all your videos very professional and informative. This video impressed me considerably , good presentation, clarity of information and execution of subject matter excellent . You have obviously built up considerable experience with running your own business's. Well done and I look forward to many more excellent videos.
Thanks very much!
Being a self employed electrical contractor like you Jordan, I completely agree with you. I've been in business for almost 10 years an I also offer a high level of quality workmanship people recognize. Consequently they never argue with my pricing, paid overnight! Post Covid though I offered a little discount to everyone on my hourly rate of about 7%, just to help out.
I'm quite surprised with the hourly rate in England, here in NZ I do charge up $65.00 + GST. Cheers mate
That's not the normal hourly rate in England... Average hourly rate for an electrician is around £40 an hour, some areas (guessing obviously Cambridge included) are more expensive than others. I mean fair play if you can charge £96 an hour and still get plenty of work, some areas have more competition than others.
Thx for coming up 👍
In the old days mark up on materials was simple - you got your 20% trade discount and you charged the client at the non trade price. There didn't feel ripped off because they couldn't get cheaper and you made a bit to cover your time picking up, returns etc . The internet has basically killed the trade discount on small items which can fit in the back of a car. You can make some on cable by buying big reals (you know you are always going to using 2.5 T&E so buy in bulk when it's cheap) and bulk packs of wagos / boxes etc then charge at a per unit price but it's the pricy one-off items which it's hard to defend. If you ask the customer to get it themselves and they get the wrong one then it also comes back to you
£80 an hour for house bashing! Jesus im in the wrong sector of electrical engineering!
That's the reality. And much more customers. You can feel you are smarter knowing more. But knowing more doesn't put more in your pocket.
@@ivanblazhenko99 I don't understand your comment pal?
Well ultimately, the so called cream work of commercial and industrial doesn’t pay aswell as domestic add the fact domestic work is far easier ( technically) !
This is very useful indeed for people who are non-electricians as well (speaking as someone self employed for the last 27 years)
Regarding material costs, when I worked at a big company in the 1970's and 1980's a purchase order was about 500 dollars per line item just for the processing time (buyer, receiving, QA, billing, accounting, etc.), the cost of the item was in addition to that. So, material is far more than the cost at the hardware store.
Excellent, I’m from US and we run the business very similar. Now joining the Service Titan Network running our business from home and trough a group of licensed Electricians that share the same prices nationwide. So the competition is fare and equal for everyone.
Thank you so much for being honest Jordan. Really appreciate the great valuable advice. 👍🏼
Your welcome!
Great man for sharing this it’s what all new electricians want to know. I became an Electrician at the age of 40 whilst still working as a firefighter got my City & Guilds started my own business at 43, a one man band Retired now living in Thailand now but 10 years ago I was earning £125 per day.
I do the odd Electrical jobs in Thailand for £40 per day. I do not do much but friends mostly. A Thai sparky charges £40 a day but trying to find a qualified one, that is a lucky dip.
I still like to watch Sparkies in the U.K.
being a Electrician is a great job.
Well done young man.
Great Video Jordan, been self employed 7 years but still great to hear others advice and perspective 👍🏼
Thanks!
Nice video. I agree with most you said. Except I charge zero markup on parts and straight hourly to get them . Less paperwork. So customers benefit from a big parts order and less so from a small one. I hate paper work
Must say excellent content, presented very well. All to often we are faced with a race to the bottom or other people trying to tell you what you are worth, well done for keeping standards high and charging a fair price for services rendered!
I don't think everyone should charge that but at least hopefully it gets people thinking of how to get to your hourly rate methodically. I don't win every job but the ones I do win are customers for life 👍🏻.
Thanks! I'm glad it was helpful to you!
Liked your vlog. What about building in you holidays when you calculate your hourly rate. You build up your overhead annual rate then divide by 48 weeks not 52 weeks unless you don’t take any !! Keep up the great show.
Thank you! Great, helpful information. I've got a couple of questions:
1. I wonder what would be increased percentage in London, like everything in this city, is pricier than the rest of the UK.
2. How about if you hire/contract a Mate to help you for 8 hrs? What would be the daily increase in pricing the job?
Many thanks! Look forward for your reply :)
Hi Jordan, Here in the USA our Accountants recommend that we pay the Sales Tax (VAT) when we purchase the material from the wholesaler. That amount varies. The we add our mark-up and material profit. The Shipping and Handling. Including an amount if we are going back and forth to the wholesalers. Then labor and job profit and then an amount for the Warranty. Even if the Manufacturer has a warranty, it is the Electrician that has to go back out to the jobsite, remove the defective part and return it to the Manufacturer plus postage back and forth. My minimum amount is 65% of wholesale to cover all of the above.
The company I sub to occasionally, charge 100% on parts.
Very good advice for anyone starting out or even established sparkies. Overheads are very often under valued when fixing your rates.
Thanks for your comment
I just watched a masterclass in how to run a small business. Essential viewing for anyone starting or running a business.
Thank you for your time and effort in making this video.
Glad it was helpful!
thanks for sharing your knowledge
Thats awesome information Jordan and very intresting
Solid video; thinking about going alone just now and I’d done all these sums just before finding this video! Reassured me that I might know something! I’d planned for £240-300 per day. Covers costs of £20k p/a and up to £40k per year pay before tax.
EDITED - this wasn’t allowing for time off and sick pay which would take total to closer to yours.
I commend this approach to pricing. Hopefully these sparky tubers get the word about so these prices are the norm. The problem is not Jordon, it’s the ones that don’t charge their worth to get the work and cut corners to make a profit.
Great comment thanks
This is where the pricing all comes unstuck, especially in the summer when demand is down, I charge lower for a nice dust free standing job like replacing down lights ,up the price for knee damaging work like chopping in sockets, lifting boards etc, also have to consider how near the job is to the van ... blocks of flats etc!
Don't need college with you on the scene, great content 👌
An asset to the industry im signing up for his course!
Well done. Great video. You seem to do everything very well.
A huge factor now is the legal basis for performing electrical work leading to high insurance costs and the risk of having to rectify work later on. You find that cashflow is critical in compiling and controlling stock and supplies. In Ireland anything that is installed in a building becomes the property of the buildings owner and cannot be removed after the install in the event of non-payment. This differs from wet trades where material costs are much smaller in relation to overall costs sucj as labour.
Excellent video/content, thank you for this 👍👍👍👍👍
Glad you enjoyed it
Yes .. Jordan Thankyou 😃
Tip on calculating quickly just 12,50 per move, drilling wall socket 12,50, hanging a lamp, 12,50, installing extra fuse 12,50, connecting cable in distribution cabinet 12,50, point a to b 12,50, if its hanging a fan or connecting a switch, 12,50 excl material costs ofcourse try it. I think its accurate and fair, some prices are per meter and some are more expensive depending on the job
Don't forget everyone, there's waiting clients out there who are least and last affected by recession and pandemics etc price is not an obstacle for them. It's one thing to be excellent at what you do, it's another things to be excellent at what you do and to be excellent at marketing what you do, and to stand out these days you have to nail both those areas.
Totally agree
amazingly inspirational
cheers
I'm not an electrican, I don't plan to be an electrician but i still watched the whole thing! Great stuff!
Great job and video like always
Thanks a lot
Great Video Jordan 👌🏼
Thanks
great video really informative
Follow ur channel keep up the great work as I’ve learned so much 👍🏽
Nearly fell over when you said your hourly/daily rate. I think it very much depends on your working area. In the midlands even half that cost would be seen as expensive. Fair play for charging that and still getting the work
Why would midlands be cheaper than anywhere else is materials fuel half price in the midlands. People who are afraid to charge are weak and shouldn't be in business.....
@@lilynugent what a daft comment. Prices vary dramatically across the UK. For example, A 3 bed semi rewire in Kent is going to cost alot more than the same property in Hull. Then there is the type of customer you are working for. If you are rewiring mrs Jones 3 bed with just an extra socket in each room then that will generally demand a lower rate than the customers who want to be at the forefront of smart tech and demand high quality equipment, knowledge and design. I'm still shocked at the cost pr hour this guy is charging but considering the factors mentioned above then maybe it's justifiable. He obviously hasn't scared away the custom.
It’s a business, not a subbies rate.
Hi Jordan,
Very watchable interesting business strategy which obviously works well for you.
Thanks
appreciate this video so much, thank you. Anyone would be lucky to have you as a role model. 👍
Thanks a lot!
Great video !
Nice lesson. People tend to forget, that the cost of living changes depending upon where you live. So if someone "up north" says you're charging way too much, it is because their cost of living maybe a lot lower and their target market is different.
Of course, travel times can also vary hugely depending on location and congestion
Great and informative video!
Thanks!
After getting a quote from Artisan Electrics.. i can now see how Jordan can afford a Tesla, and hire more electricians.. crazy crazy prices.
But he is "reassuringly expensive!"
Zero chance off charging that in the North east. You'd go very hungry and out of business quick up here.
Well cambridge is a far more expensive area to live in so he's gonna need to charge more than an electrician that lives in the NE
Most of you guys in the comments make me chuckle. A sparkle charges you nearly 100 quid per hour and its bang on. Your car breaks down at the garage and after vat its 45 quid an hour on average, it's like your world has ended 🤣🤣🤣🤣
Also; expectation management is the most important part of pricing and estimating as far as I can tell. Not shock and awe but just a clear guideline of cost.
Totally
Can I just throw a question out there to see what the response is? Back in 2015 I was predominantly using JCC LED6 downlights. This is mainly because they came with a 7 year warranty. They weren't cheap but appeared well made. These downlight have failed miserably. I have complained to JCC and Rexel over the years. In the early days Rexel would give me a replacement to go and fit. I tried to get compensation from JCC or Rexel for my time. At first JCC were very good and gave me a £300 pay out but Rexel explained that it is only the light that's under warranty and not my time and that I should still charge the customer for my time for replacing it. My question to you all is - Would you?
I would feel very uncomfortable charging customer, especially if I'd suggested the JCC fittings. Nowadays I just don't use JCC, because of the way they wriggled out of honouring some downlight warranties a couple of years ago. Customer should have registered them online, didn't, so JCC just said "tough luck" - not cool when you've sold them on the back of their warranty period. I believe I am not alone in boycotting JCC, and that they are suffering an ongoing slump from the whole episode of that particular unreliable model (the LED6, strangely enough). Tough luck, I say!
when we had the 2008 downturn in the economy , many in my area (epsom surrey) were reducing their prices per hour to silly money, i would rather stay at home than give away my skills in that way. i actually increased my hourly rate from £40 to £55 pph, and never looked back, managing to keep myself , my electricians mate and my apprentice , plus another electrician in work , right up until i retired in 2017.
I'm a self employed painter and decorator I don't charge day rate often as most jobs go over 2 days, most prices are templated as I do alot of 1 and 2 bed flats for a larger company , just standard magnolia walls and white ceilings , no woodwork often . As long as in a week I hit my "target " I'll find my bills are paid and I can still live a nice life with some money being put away, I'd expect to hit my target in 3 days so the other 2 days are just bonuses , not everyone agrees with pricing this way but I find working like this im not mega mega busy but I'm just flowing along week to week nice and steady
So often I see other painters in my area pricing low to beat others but in my opinion once you start doing this your automatically creating a more stressful way of working
Excellent!!!👍
I appreciate this video. I often struggle pricing side jobs I do in electrical.have a set take home price and go from there.
Am not an electrician but very interesting, thanks for sharing.
I have had a look on the Net and a lot of the price you see are very similar to this vlog.
I am at the moment raising my prices but imay increase them a little further after watching this.
I may of been undercharging.
Great video, very useful. Just ashame there are so many cowboys around that bring down the prices
You have to warranty the materials too and change them out free if they fail
Exactly
Very valuable information
Glad you think so!
16:46 Don't forget, also, the value of your professional expertise in knowing what materials to get and where to get them inexpensively and efficiently.
Spot on 👍🏻👍🏻
When you price a job how much should you allow in terms of time per job for example if a job takes 1 hour how do you allow the time for potential problems that’ll set you back etc also do you work on a price like if you charged someone a set amount do you then have to work as fast as possible in order to earn money ?
Any chance of extending the 50% off? 👀
Cracking video geeeez, genuinely. So many questions answered here, for me. Massive help.
Thanks. Yeah email me and I will send you a code! 😁
If buying materials where the customer otherwise couldn't and at cheaper prices, it's only fair to add a markup exactly for the reasons you have mentioned.
Nice one Jordon.
So for example if you was doing a re-wire would you still do your price as in Materials and hourly rate? Or would you do it by per point?
Thanks
P.s im going to sign up for your course!! Just started my own business and need to push it to the next step
I calculate it by how arsed I am to do the job , how difficult it may be , Travel , materials and if the customer is mental.
If all the above a 2 bed semi rewire will be in the region on 10k if they have it then great if not Owell on to the next one
I actually found I could charge a high daily rate for big jobs, because the customer saw the value. For smaller jobs, say to fix a CPC/RCD fault, fixed in an hour, they expected it to be cheap.
Jordan, you are the greatest electrician, and a fantastic presenter! No wonder he's so
Thanks
"Reassuringly Expensive" was used as an advertising slogan by Stella Artois some time ago:
en.wikipedia.org/wiki/Reassuringly_Expensive
Which is kind of amusing because Stella is actually pretty low-end stuff. But it worked for them _and_ entered the language.
Does the customer get a discount if you're filming for half the day? or do you charge them extra for that?
Hi great Channel.
Regarding the course is it possible to pay per topic so that it's a form of Pay As You Go / learn to spread the cost out?
I cant see a problem with filming while he works as long as the job gets done. If the job doesnt get done and he is charging a day rate then yeah... Thats going to be an issue for the customer and will likely piss him/her off.
@@strongerandwiser2023 he makes more money from RUclips than some jobs.
Does that £96 an hour cover whatever you are doing for example do you charge an EICR per hour or is that charged per circuit or anything else? Keep up the great work and I’ve found all your help great.
EICR's priced the same, I usually price them as half a day £320 + VAT or full day £640 + VAT
I wish, we’ve got loads of people around here knocking EICRs out on 3 bed properties for £80. It’s making things really hard
@@colin8016 What???
@@dangruner5926 they dont do a proper test though just cowboys , i heard about some of them price a 3 bed rewire for 2k with materials
Wow! £600+ for a days work. That's a month's pay to a lot people after paying bills out. Shouldn't be charging more than £200 a day (10hrs) on a single job. No wonder people don't want to pay crazy fees
I figure the "cheaper for one day" idea is basically the thought that you're only travelling once, vs smaller jobs where they should cover more overhead for mileage and time. Eg if you do 1hr jobs all day, you'll probably only manage 6 or 7 jobs due to the extra travel, and you'll pay more for fuel doing it, whereas for a single all-day job you're getting a full 8 hours. So some people (rightly or wrongly) expect that some of those savings should be passed on to the customer
I'm not saying I do/don't agree with that, just expanding on the idea
I work as stubby gas engineer for a high end kitchen company in North Yorkshire. They was grumbling at £30 per hour.. when they charge £2000 for an hours job swapping like for like extraction fan.
Realy piss me off when people grumble and I know its not alot of money that I charge at all!
I'm from Leeds. If the customer grumbles at £30ph then they are not the customer for you leave them to Joe from the pub to burn down their house.
@@ChrisTheSparky Thing is that often Joe from the pub DOESN'T burn the house down, he does a perfectly safe though unlawful job. He may even be using RUclips as a guide how to do the job!
Well,i have other feelings about it.I mainly work via Workspot.(I know there is one in the UK!)If i ask such high prise for my work,then i dont get that work!Simple as that!So there must be others who even do the work cheaper than me!So there is always times that i dont get work,because others are cheaper and i am sitting home without.Because the people expect to get the work done via workspot cheaply.And Workspot has rissen there prise also,so its hard to get work.
32 bloke here. I know it's kind of late in the game to get into this kind of trade. I did my level 3 about 2 years ago but had a really bad experience working for a guy. Kind of knocked my confidence and I never went back, wish I have it more of a chance now.
Well thought out...
You know what I have always been a little unsure on you but I will give you your due you got it spot on in this video Gary Price - Orrell Electrics
Thanks Gary
🤣 im sure your approval at orrell means alot to him !