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Need help with pricing PLEASE HELP starting new business!!!!
This thread has 15 replies. Displaying all posts.
Post 1 made on Friday April 16, 2004 at 01:28
Home Kustomizer
Long Time Member
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I am finally after years and years of people telling me to, starting my own low volt installation business. Any I mean any help would be greatly appreciated. My main thing is pricing though. Although I have been doing this a while corporate set our pay structure on every job I've been at. The going rate around here is 65 hr. I am looking for a round about pricing on structured wiring and such, not including product. punch down blocks, enclosures, wallplates, splitters,etc... I know all the basic pricing on programing, retro, and trim out of stuff others have prewired, but the structured is what I need. Also any other advice on starting my own business like getting clients, especially builders would be more than appreciated. Please respond to my email and if you can give me more than average advice and pointers I am willing to offer a payment to that person for your time.
Post 2 made on Friday April 16, 2004 at 04:15
HDTVJunkie
Long Time Member
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Short answer: Buy DTools, and hang out by the coffee machine at your favorite lumber store.

Caveat:

Don't burn the bridge with your employer in case you don't like being out on your own. I'd like to have a boss for a change. Haven't had one since 1979.

Owner = Paperwork, government forms, complaint resolution, paperwork, research, litigation, paperwork, taxes, fees, dues, paperwork, payments on trucks, tools, office expense, paperwork, employee pilferage, employee no-shows, employee substance dependence, paperwork, profit sharing, medical insurance, and did I mention paperwork? This list, by the way, is very incomplete.

Employee = installation, evenings off, weekends off, paycheck even if the company bills aren't paid.

Almost forgot, the business owner can, if he has a knack for running a business, can make more money than his employees, but that is by no means guaranteed! Most don't last a year.

I don't mean to scare you off. Just go at it with your eyes open. $65/hr + parts would be fair for your prewire work. The trick is to be highly organized so you can get a contractor to pay you based on that rate. They tend to suffer from Can'tGetTheMoneyBackOutOfItfobia.

Best of luck!
Post 3 made on Friday April 16, 2004 at 09:44
Anthony
Ultimate Member
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28,876
so HDTVJunkie I think you forgot paperwork in the list of jobs for the owner :-)
...
Post 4 made on Friday April 16, 2004 at 12:08
Ernie Bornn-Gilman
Yes, That Ernie!
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30,104
My wife is a doula, a person who assists a couple with birth labor from start to finish. She read this to me with a straight face a few months ago:

Nothing is more overstated than the joy of natural childbirth, except perhaps the joy of owning your own business.

One of the people who posts here, who I believe goes by the name mburwen (I know at least that it has burwen in it) is also in Arizona and is trying to go from retired to consulting to programming. Try locating him. He might have some insight for you.

Also, thanks for at least putting your state in your profile. It might help every one of us, though, to know if you are in Phoenix, or Flag, or Cornville...that matters A LOT in regards to pricing. I know a Radio Shack owner in Cottonwood who does installations occasionally, so if you are in that neck of the scrub, check him out.
A good answer is easier with a clear question giving the make and model of everything.
"The biggest problem in communication is the illusion that it has taken place." -- G. “Bernie” Shaw
OP | Post 5 made on Friday April 16, 2004 at 18:28
Home Kustomizer
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I have all my own tools and truck and trailer for big jobs. I am in the phoenix area. Mostly I know 65 hr but what type of prices would I want to propose to builders and such on pre wire and trim out type stuff?????
Post 6 made on Friday April 16, 2004 at 23:22
geraldb
Long Time Member
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June 2002
412
Are you looking for customs or production homes?
A prewire can range from $1500 to $15000 and up in some cases.
Too many variables to come up with a simple price.

Oh, was paper work mentioned as a major PITA?

Friday nights getting home at 9pm, 10pm, ???
Oh, no need to pay anyone here, most guys/gals here are very willing to give a hand and share their experiences.
Good Luck!!
Post 7 made on Saturday April 17, 2004 at 07:40
Trunk-Slammer -Supreme
Loyal Member
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November 2003
7,462
No, no, no....


I want to be paid. That's the first and foremost rule in this business....

Pay me and I'll talk.

I'm such a profit motivated wh*re....lol
Post 8 made on Sunday April 18, 2004 at 00:07
HDTVJunkie
Long Time Member
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March 2004
467
On 04/16/04 09:44, Anthony said...
so HDTVJunkie I think you forgot paperwork in
the list of jobs for the owner :-)

Lol! I wanted to be an electronic technician when I grew up, and after several years of growing my business, I realized that I'd turned into an administrator. Paperwork is my re-occuring nightmare. Eight years ago I down sized so I could again do what I love, best move I ever made!
Post 9 made on Sunday April 18, 2004 at 00:36
digitlife
Long Time Member
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Home Kustomizer,

I am an integrator in Phoenix. We haven't charged $75 for about 5 years now. Email me at [email protected], I can talk to you abouy this market.
OP | Post 10 made on Sunday April 18, 2004 at 01:43
Home Kustomizer
Long Time Member
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I was just wondering if there is a price per run normally or are most jobs just bid out per hour then estimating how long it will take to do the job? I am just looking for an average I know it can vary each job.
This whole thing is new to me so any help would be greatly appreciated. The hours are nothing I was putting in 12-14 hr days 6 days a week anyways if the money is there than thats what Ill do.The more you work the more you make so till I drop. I have a couple of good guys to work for me if it takes off well.
Post 11 made on Sunday April 18, 2004 at 02:17
HDTVJunkie
Long Time Member
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467
Do you have a contractors liscense H.K.? I don't know AZ laws at all, but it occured to me that most contractor schools teach you how to bid.
OP | Post 12 made on Sunday April 18, 2004 at 22:50
Home Kustomizer
Long Time Member
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Contractors schools?????
what is this anyone know of this?????
Post 13 made on Monday April 19, 2004 at 00:23
digitlife
Long Time Member
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Kustomizer,

Arizona requires a low voltage contractors license, there are classes you can take that will prepare for the test. They also require a construction management test that will try and prepare you for running a construction related business, including bidding and contracts, all the neccessary regulations, ect. To get registered they require insurance and a bond to protect homeowners. Keep in mind it will be hard to get bonded with limited experiance and assets.
Post 14 made on Monday April 19, 2004 at 02:12
TheaterInstaller
Long Time Member
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April 2004
60
You happen to be in the right place at the right time... The going rate for AZ is $75.00 Hr. & $110.00 for a two man crew. But thats for custom work. Go down to your local ADI and sign up. You will not only get great Prices on parts but a lot of free advice.

North Phoenix
2401 W. Behrend Drive
Phoenix, AZ, 85027
623-581-2559

Phoenix
3620 East Roeser Road
Phoenix, AZ, 85040
602-437-2878

They also have training... ON-Q, Russound, Xantech, Ect...

Goodluck in your new bussiness.
Theatreinstaller
Post 15 made on Monday April 19, 2004 at 13:11
MitchellEnt
Long Time Member
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February 2004
58
Did anyone tell him that you have to do at least three installs a day to be in this business? Give him Timshows #!
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