Five Items To Include In Your Electrical Business Prebuilds
When you set out to price your service, you have got to consider every little item or event that might have led to the culmination of the final product and service. It will ensure that you are making a profit (and a good margin at that) on every job that you close. This is really important if you plan to run your electrical contracting business for a long time to come. Sustainability is the key to building a long-lasting electrical business. So let me show you how you can achieve it.
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Include time taken to go to the wholesaler
Make sure to add a little bit of it to every item on the list. Suppose it took you 60 minutes to get 10 things, then you can add 6 minutes to every item on the list and thus you have turned it into a productive activity. If you went a multiple number of times to the wholesaler, then you want to add up all the items that you end up buying.
Make sure to inbuilt warranty, so in case of a future call, you know that you have already covered for it. And if you were to build it on 100% of your products and services and end up getting calls on a minor percent of it, then your electrical business is still running in the green zone and raking in profit. So all’s good.
Time taken from the van to the site
It might seem like a trivial thing to add, but you need to include it, because an electrician might go to the van and back again once or twice, depending on what needs to be done and the things he has with him. Since you are paying your electrician an hourly wage, this way you can ensure that you’re able to pass a bit off it to the customer while the electrician is on their job.
Interacting With The Customer
You can also include a few minutes for the electrician to talk to the customer to get to know what needs to be done and to build a rapport with them. Suppose, if you went to a site to install a power point, then consider all these minor steps in your prebuild and bill for it -- The customer shows you through power point, you go down to the van, look for the stuff, and get it back upstairs.
Account for the Average Speed
While calculating all of the above, you have got to ask yourself, what would an average person do and achieve at an average speed? Calculate this for every single thing. Include time for when they forgot fixing, account for it even though it doesn't happen every time. How many times do people forget things? How many minutes does it take to get that particular thing? Suppose, it happens 1 in 5 times, and it takes 3 mins, so you divide it by 5 and you get a minute.
That’s all for pre-builds. Are there any other things that you’d consider while setting up your electrical business prebuild? If so, please leave us a comment and let us know! We would love to hear your thoughts, too.
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