Fair pricing
#1
08-28-14, 03:16 PM
Fair pricing
Today I had a GFCI receptacle replaced by a local company. Afterwards, I looked over the receipt and it seems excessive.
- Labor - $125 an hour for tech
- $23.70 for GFCI receptacle
- $5.00 gas surcharge
When I went to pay by credit card, the guy said "you may want to pay by check to avoid the 3% fee that YOU have to pay to use the card".
I used this same company many years ago, but it seems things have changed a lot.
Why is changing a receptacle so expensive? I get the whole "electricians are trained professionals blah blah", but $125 an hour on top of the other charges?
I used to work as a software programmer and wrote complex code that ran on thousands of users systems. My pay per hour never came close to $125.
Guess I will be looking for another fair electrician soon.
- Labor - $125 an hour for tech
- $23.70 for GFCI receptacle
- $5.00 gas surcharge
When I went to pay by credit card, the guy said "you may want to pay by check to avoid the 3% fee that YOU have to pay to use the card".
I used this same company many years ago, but it seems things have changed a lot.
Why is changing a receptacle so expensive? I get the whole "electricians are trained professionals blah blah", but $125 an hour on top of the other charges?
I used to work as a software programmer and wrote complex code that ran on thousands of users systems. My pay per hour never came close to $125.
Guess I will be looking for another fair electrician soon.
#2
08-28-14, 03:43 PM
The GFCI included a small mark up. Fuel surcharge is understandable. 3% credit card can't always be absorbed by the vendor and they pass it along to the customer...reasonable. The labor charge was nominal unless it took 2 hours to do the job.
Often the supply and demand of trades is lopsided. How many programmers did you have doing that type of work? Probably thousands. You may only have 2 electricians for a small town, or they may have union affiliations.
Often the supply and demand of trades is lopsided. How many programmers did you have doing that type of work? Probably thousands. You may only have 2 electricians for a small town, or they may have union affiliations.
#3
08-28-14, 04:01 PM
Yeah $125 for 20 mins of work is fair. The GFCI 3 pack at lowes(customer pricing) is $27. His mark up is almost the same price. Guess the next 2 customers he does is 100% profit on those extra GFCI receptacles.
I had been in the wrong business all along. This has prompted me to take some classes and learn more about it.
I had been in the wrong business all along. This has prompted me to take some classes and learn more about it.
#4
08-28-14, 05:34 PM
Group Moderator
Remember you are not just paying for the the time he was there. He had to get there, and get to the next stop. $5 for fuel? That will get my service truck about 15 miles.
As for the price of the GFCI, that part didn't just appear in the truck. He had to pick it up at some point. You paid about $8 extra.
Plus add:
Insurance (liability, health, Unemployment, etc)
Bonding
Truck maintenance
Taxes
Licensing
Payroll
Training
Things are starting to make sense better aren't they?
All things said though, I would have only charged actual cost for the part, rounding up to the next dollar. We do not mark up materials unless it is a lot of work to get it.
As for the price of the GFCI, that part didn't just appear in the truck. He had to pick it up at some point. You paid about $8 extra.
Plus add:
Insurance (liability, health, Unemployment, etc)
Bonding
Truck maintenance
Taxes
Licensing
Payroll
Training
Things are starting to make sense better aren't they?
All things said though, I would have only charged actual cost for the part, rounding up to the next dollar. We do not mark up materials unless it is a lot of work to get it.
#5
08-28-14, 05:36 PM
Group Moderator
I'm an electrician and unfortunately in my area of NJ most people wont pay 125.00 for a one hour service call. I very rarely see anywhere near that amount per hour in the residential sector but there are a lot of electricians in this area. I don't take credit cards.
My customers would shoot me if I hit them with a fuel surcharge.
There are many types/brands of GFI receptacles. I don't use the HD cheapies as they don't last long. The last batch of GFI receptacles I bought from the supply house were around $18 each.
My customers would shoot me if I hit them with a fuel surcharge.
There are many types/brands of GFI receptacles. I don't use the HD cheapies as they don't last long. The last batch of GFI receptacles I bought from the supply house were around $18 each.
#6
08-28-14, 10:22 PM
Forum Topic Moderator
Also remember that the $125 was not going into the techs pocket as his salary. I will bet that your company didn't bill at just your salary either.
#8
08-29-14, 03:49 AM
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There are many types/brands of GFI receptacles. I don't use the HD cheapies as they don't last long. The last batch of GFI receptacles I bought from the supply house were around $18 each.
#9
08-29-14, 08:22 AM
Member
The GFCI 3 pack at lowes(customer pricing) is $27
As for the price of the GFCI, that part didn't just appear in the truck. He had to pick it up at some point. You paid about $8 extra.
Plus add:
Insurance (liability, health, Unemployment, etc)
Bonding
Truck maintenance
Taxes
Licensing
Payroll
Training
Plus add:
Insurance (liability, health, Unemployment, etc)
Bonding
Truck maintenance
Taxes
Licensing
Payroll
Training
#10
08-29-14, 09:53 AM
Super Moderator
Hey marchvet, just saw your location. You should have asked here first. I lived in Hampton for 20 yrs, I could have given you a reference or 2. A good friend and old neighbor owns one of the largest electrical contracting companies in the area.
I do agree though, that the price was pretty reasonable for your vicinity. The service/labor is probably initial service call plus 1 hr (or any part of). Many companies work that way.
I do agree though, that the price was pretty reasonable for your vicinity. The service/labor is probably initial service call plus 1 hr (or any part of). Many companies work that way.
#11
08-29-14, 10:09 AM
Group Moderator
Haven't hired an electrician in a long time but I had a locksmith out last year and they hit me with a $95 trip charge which they said covered up to one hour onsite.
