What Is the Labor Rate for Electrical?

A Contractor University Member recently utilized the Ask-The-Expert Q&A feature within the member dashboard by submitting the following question and received the response below.

Contractor Question:

“What is the recommended labor rate for electrical work? We use flat rate pricing. Our HVAC book is built on $350 per hour.”

Contractor University Expert Response:

“At $350 per hour in your market will position you as a premium contractor. $350 an hour in your electrical class should allow you to build in service code discounts as you add price book service codes to the ticket. For example, the first repair may be full price, then additional same visit repairs may be discounted say 10%, sort of a “While I’m here” discount.

Keep in mind at $350 an hour suggests you will use a Residential Journeyman Electrician licensed person or above for residential repairs, and this rate allows you to use a second apprentice electrician on repairs requiring a second hand. Electrical repair jobs often require a second person, as pulling wire always works better with 2 people.

I like $350 an hour as long as your delivered service experience delivers that “WOW” factor most customers appreciate. If you feel you need to adjust your pricing to be more price competitive then your range could be between $275 and $350 an hour in your area. Ultimately, your profitability will come down to billable labor efficiency. I hope this helps. If you would like to discuss this more, click the blue box in my signature below and lets schedule a call.”

Contractor University members can click here to log in to their member dashboard and submit a question through the Ask the Expert portal.

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