How to Price Electrical Services: A Complete Guide for Electricians
Pricing your electrical services correctly is the difference between a thriving business and barely getting by. Too low, and you're leaving money on the table. Too high, and you lose jobs to competitors.
Here's how to price your electrical work for maximum profit.
Know Your True Costs First
Before setting prices, calculate your actual costs:
Direct Costs (Per Job)
- Materials and parts
- Permits and fees
- Subcontractor costs
- Equipment rental
Overhead Costs (Monthly)
- Vehicle expenses
- Insurance
- Tools and equipment
- Office/shop rent
- Phone and software
- Licenses and continuing education
- Marketing
- Your salary
Calculate Your Hourly Cost
Formula:
(Annual Overhead + Desired Profit) ÷ Billable Hours = Hourly Rate
Example:
- Annual overhead: $80,000
- Desired profit: $60,000
- Billable hours per year: 1,600 (80% of 2,000 work hours)
- Minimum hourly rate: ($80,000 + $60,000) ÷ 1,600 = $87.50/hour
This is your floor - don't charge less.
Hourly vs. Flat-Rate Pricing
Both models work. Here's when to use each:
Hourly Pricing
Pros:
- Simple to calculate
- Covers unexpected complications
- Industry standard for many markets
Cons:
- Customers don't know final cost
- Penalizes efficient work
- Can lead to price objections
Best for: Complex repairs, troubleshooting, T&M contracts
Flat-Rate Pricing
Pros:
- Customers know cost upfront
- Rewards efficiency
- Easier to upsell
- Higher average tickets
Cons:
- Requires accurate estimates
- Risk if job takes longer
- Need a good pricebook
Best for: Common jobs, residential service, installs
Recommendation: Use flat-rate for 80% of jobs, hourly for complex unknowns.
Current Electrician Rates (2025)
National averages (adjust for your market):
| Service | Hourly Rate | Flat Rate Range | |---------|-------------|-----------------| | Service Call | $75-$150 | $89-$149 | | Journeyman | $65-$100/hr | - | | Master Electrician | $100-$150/hr | - | | Outlet Install | - | $150-$300 | | Panel Upgrade | - | $1,500-$3,000 | | Ceiling Fan Install | - | $150-$350 | | Whole House Rewire | - | $8,000-$15,000 |
Your rates should reflect your experience, market, and costs.
Building a Flat-Rate Pricebook
A pricebook lists every common job with set pricing:
How to Build One:
- List common jobs you perform
- Time each job (average over multiple instances)
- Add labor cost (your hourly rate × time)
- Add typical materials (with markup)
- Add profit margin (15-25%)
- Round to clean numbers ($297 → $299)
Sample Pricebook Entry:
Standard Outlet Replacement
- Labor: 0.75 hours × $100 = $75
- Materials: $15 (outlet + supplies) × 1.5 markup = $22.50
- Subtotal: $97.50
- Profit (20%): $19.50
- Price: $119
Update your pricebook annually for material cost changes.
Markup on Materials
Standard material markups:
- Small parts (outlets, switches): 50-100% markup
- Fixtures: 30-50% markup
- Panels and equipment: 20-30% markup
- Wire and conduit: 40-60% markup
Don't feel guilty about markup - it covers:
- Time to source materials
- Warranty if materials fail
- Inventory management
- Vehicle storage
Pricing Strategies That Increase Profit
1. Good-Better-Best Options
Present three options on every estimate:
- Good: Basic solution (gets the job done)
- Better: Mid-range with extras
- Best: Premium solution with warranty
Most customers choose "Better" - which should be your most profitable option.
2. Service Agreements
Offer annual maintenance agreements:
- Guaranteed revenue
- Priority scheduling for you
- Discounts for them
- Builds loyalty
Price at $99-$199/year for residential.
3. Minimum Service Fee
Always charge a minimum for showing up:
- Trip charge: $75-$150
- Covers drive time and overhead
- Applied toward work if job is done
- Never waive it (devalues your service)
4. Emergency Rates
Charge premium for after-hours:
- After 5 PM: 1.5× regular rate
- Weekends: 1.5× regular rate
- Holidays: 2× regular rate
Customers expect to pay more for emergencies.
5. Never Compete on Price Alone
If you're the cheapest, you're doing it wrong.
Compete on:
- Response time
- Quality of work
- Professionalism
- Warranty
- Convenience
Customers pay more for businesses they trust.
How to Present Pricing
How you present price matters:
Don't say:
"It'll be about $500, maybe more depending on what we find."
Do say:
"The investment for this repair is $497, which includes all parts, labor, and a one-year warranty. We can have it done today."
Use the word "investment" not "cost" or "price."
Handling Price Objections
When customers push back:
- Acknowledge their concern
- Explain the value
- Offer options (not discounts)
Example:
"I understand. Let me explain what's included: [list value]. If budget is a concern, we could do [alternative option] for [lower price], though I'd recommend the full solution for [reason]."
Never drop your price without removing scope.
Track Your Profitability
Review these metrics monthly:
- Gross margin per job: Target 40-50%
- Average ticket: Track trends
- Close rate: Aim for 60%+
- Revenue per technician: Benchmark against goals
Use software like Business Genie to track these automatically.
Price Confidently
Your expertise has value. You spent years learning your trade, invested in tools and training, and carry insurance to protect customers.
Price accordingly and don't apologize for it.
Business Genie makes professional pricing easy with instant estimates, branded invoices, and payment processing. Try it free today.