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I am a small Licensed Electrical Contractor (LEC) in Toronto, Ontario, Canada with a crew of four including myself. For bigger jobs I invite fellow LECs or sub-contract out.
95% of my work is residential and commercial electrical renovation and troubleshooting. I drive on average 60 minutes one way to a job site and 60 minutes back. And an average project takes about three hours to complete.
I always charge a $160 service call fee, which includes first hour or less of work. $160 is a minimum amount. And I charge $32.50 every half an hour or fraction thereof after the first hour for labor. Plus I charge double for materials and inspection.
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In downtown Toronto I charge even more. Because driving around, looking for a parking spot and then running back and forth with toolboxes, wires, ladders, etc. is hard, stressful, and wasteful.
And I never go for free estimates if the expected price of the job is below $2000. Do you?
I decided to ask other LECs and electricians doing residential renovation work and troubleshooting in Toronto & the GTA what their hourly rate is.
We all know that big firms charge their commercial and industrial customers from $100/hr to $200/hr. Why do so many of us, residential LECs charge so much less?
I know some small LECs charge from $30/hr to $40/hr. I think it's a shame and discreditation of our occupation! Do you agree?
When I began working for myself, I also charged $30/hr. When in a few days there was too much work, I raised to $35/hr. It did not help. In a week I was making $40, then $50, and $60/hr. And I started to take a services call fee.
Amazingly, no matter what the prices were, most callers eventually became my customers! It is the case up to this day at $100 one time travel charge and $60 to $70 per hour!
Wouldn't it be worthwhile for everyone to charge fair amounts close to the average in the industry? Would you like to discuss fair rates for both the contractors and reasonable prices to our customers here?
Do you think $160 first hour fee is too low, about right, or too high?
Do you think my $65 hourly rate is about right?
Do you do free estimates?
Do you waste too much time on free estimates?
What is your service call fee, travel fee, or first hour rate?
Can you compete against handymen doing illegal electrical work? And what should be done about that?
What should be the average pay for a LEC or electrician?
How much does an electrician make in your company?
What is the right remuneration in Toronto, Ontario or in other provinces in Canada?
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You can also comment on these topics:
Has the ESA abused you?
Or charged money for nothing?
Pros and Cons of being an electrician
Do you do WASTEFUL free estimates?
Customer did not pay me. What should I do?
