Are you worried about the competition within your industry?

When you put a quote in for a job are you prepared to let the customer knock you down, because they have had cheaper quotes?

This is a concern for any Tradesman (or women) starting up on their own, not just electricians.

Especially if you are used to being employed and just turning up to do the job, knowing you get paid whatever the price is by your boss.

Its when you find out one day that the job you just did for the customer, your boss is getting double what they are paying you….

This plants a seed in your head.

Could I run my own business and charge double for my services?

You want to know the answer to that question? Stick around…..

Toolbox talk for electricians, helping electricians reduce stress, gain back time and earn more money.

Hello and welcome back once again to tool box talk for electricians.

Today's podcast will be an interesting conversation to have with some people.

Because there are so many different opinions on it.

Some say I like working for someone else, get paid the same each week on time everytime.

I get it, it's security for you and your family, being your own boss you may not get paid for a few months depending on the job, but when you do get paid - it's a lot more than what you earn in a week working for someone else.

Others say that running your own business is stressful, there is so much to deal with…

Invoices

Customers

Wholesalers

Quotes

And there right, you do have to deal with all that too, in my eyes it's something a little different every day.

If I was turning up to work, getting told where to go and what to do everyday, I wouldn't feel in control of my own life.

Don't get me wrong, I have worked for some brilliant companies in my time as an electrician, but also so dam right idiots who want to be treated like slaves - do what you're told or you're out of a job.

Needless to say I have quit a few jobs too, because of that reason.

This is another reason starting up on your own can be dangerous.

If you see success and enjoy it, you become unemployable!

I couldn't think of anything worse than turning up on a Monday morning and being told I'm working on a cherry picker fitting lights to the outside of a warehouse in the rain all week.

That would be where my man flu would come on and I would be calling in sick!

But I'm not trying to put anyone down who works for a company. In many scenarios it is a lot better - and everyone's scenario is different.

When you go to quote for a job, Lets say its a big job for a private builder who had 4 plots to do.

That's 4 houses to 1st and 2nd fix from scratch, one of the best jobs in my opinion.

Starting a new build with a clean slate is easy!

This will more than likely reflect in the price.

You know you can get in and out pretty quick for the 1st fix, then back a few weeks later for the 2nd fix once the kitchen starts to go in.

The thing is you know that the builder has only found you on google, so it's no doubt he has got a few other quotes from other electricians.

Do you let the builder know there is some negotiation in the price?

Do you ask what others have quoted, and say you will beat it by 10%?

In my experience, you put all the effort into the first meeting.

Detail how you will do the job, explain what you do with the down lights wiring to make other trades life easier.

For example - I cable all the lights and tuck them up in the ceiling, then do a drawing and measurements of where those cables are.

Explain how efficient you will do the job, 1st fix and 2nd fix, how long you plan for it to take.

Even go as far to say how you would separate the circuits up - you want to come across like you are the best electrician in the world.

That's what a builder will be looking for, a hassle free job completed efficiently to a high standard.

Then when they do get a cheaper quote, they will call you and ask you to match it because you impressed them with your knowledge.

I know this because it happens all the time.

I charge a rate that covers all my expenses. Some people may not have insurance, and may not have a qualification that costs them thousands.

This is why they can go in cheap, do a rubbish job, get paid 50% upfront and never come back.

This is what happens, then the builder calls you up to finish it off.

Don't do it, you need to start from scratch to be able to walk away from that job confident it's done properly.

The tradesmen that go in a stupid price work on getting the customer to just say yes go for it.

Once they have started, a few unforeseen problems come up and it ends up costing more.

I know it works like that, because I have worked alongside tradesmen that do it.

The only thing is, that one job.

You will never get that customer to recommend you or your services to any of their family and friends.

THAT'S WHAT YOU WANT FROM EVERY JOB YOU DO!

A customer recommending you to family and friends can go a really only way, compared to a customer slating you on social media can ruin your reputation for good!

Undercutting another person's quote is a race to the bottom, if your desperate to win a job and will do whatever it takes, the other person who quoted will be in the same position.

By the time you get to do the job there will be no profit in it and you may as well be a lolly pop lady for the local school.

However much you want to build your own business and be your own boss, you can ignore the fact that you need to make money.

The amount of money you charge for your services should never change, the level of service and quality is what a customer will value, and when they fall in love with that - the money doesn't matter.

Especially when a customer has dealt with a bad tradesman before.

Customers like this will keep your number and recommend you to everyone they know.

When a customer decides to go for the cheapest quote, you know what they're looking for in a tradesman.

It's a tough lesson to learn, but when customers do this - it's not long until they live to regret it.

It's happened time and time again.

Like fitting aftermarket parts on your vehicle, a garage will say it's £20 cheaper but the engine lights will stay on all the time now because it's not an original part.

For the sake of £20 I want my engine light off, so I know if any other faults occur.

Being a tight ass doesn't always work out, trust me I know.

I installed 20 soffit lights in a new building years ago, the lights were from amazon - 20 for £49.99 because that's what the customer wanted.

I must have been back 10 times to take them down and replace them, witch was fine because the customer sent them back to amazon and got a replacement - but it was so much hassle.

As soon as they were out of warranty and they couldn't be sent back, I insisted on replacing them, since then I haven't been back once.

Don't go cheap, it will save you money in the long run.

Until next time