How to setup pricing for an Electrical Contracting Residential Service Provider?
Hey everyone, I'm fairly new to the residential electrical service side of the industry and I'm trying to get my pricing dialed in. One thing I've been struggling with is pricing service calls. Sometimes I feel like I'm pricing too low and leaving money on the table, while other times I worry I'm pricing too high and potentially losing work. For those of you who have been doing residential service for a while: Do you use flat-rate pricing or time-and-materials pricing? Do you charge a diagnostic fee, truck fee, or travel fee? Is there a pricing system or price book you would recommend? Did you build your own price book, or did you purchase one from a service like Profit Rhino, The New Flat Rate, or another provider? I'm looking for a system that's consistent, profitable, and fair to the customer. I'd appreciate any advice from those who have already been through the learning curve. Thanks in advance!Painting Company here: Employees or Subs?
My Texas painting company has been operating with employees since we started. We offer benefits, WC, of course pay taxes, etc. Employees are expensive. Strangely enough, I have also found employees often are harder to keep motivated without constant oversite - they get the work done, but often not as fast as subcontractors, so that cuts into profits as well. I understand that a lot of franchises, like That 1 Painter, and CertaPro, have managers who are employees, but their laborers are 1099 subcontractors they basically treat like employees. The subs wear the company shirts, and work to the company's standards and the managers pop in here and there to check on them. This way the company avoids paying taxes, benefits, etc., and if they are low on work, they have no obligation to keep paying their laborers. This all sounds really nice. With how expensive my labor force and overhead are, I find it hard to be competitive against other companies with a subcontractor business model and still remain profitable. Any other painting companies or similar businesses - what do you guys do?👉 “Turning My Logistics Vision Into Reality – Lyric Logistics LLC”
Hi everyone, I’m Flo, the owner of Lyric Logistics LLC. I’m currently in the process of launching my transportation business focused on reliable box truck freight services for small and mid-sized businesses. One recent win I’m proud of is completing my grant applications and building out my business foundation, including my services, branding, and operations plan. It’s been a big step toward turning my vision into something real. I’m excited to be part of this community and learn from others while growing my business. Looking forward to connecting!
