Day rate? How long is a piece of string?

28Apr

When TradeSkills4U decided to find out what is the average day rate for domestic electrical work, there was no simple answer.

It seems there is no hard and fast rule when it comes to deciding a day rate, and indeed, approximately a third of our responses suggested that a day rate is not always used in all circumstances.

When discussing day rates with electricians through the survey, two reasons were identified that influenced the final day rate that was charged to the customer, namely business costs and competition with other electricians.

Rather than ask electricians to reveal their day rate, the electrical training provider decided to compare the earning potential of the differing ways of working which will hopefully serve to help other electricians who are struggling in increase their earnings.

Sub-contractors and lone electricians responded. Many spoke from experience when deciding on a day rate for their own work. A lot of sub-contractors forget to add the additional costs such as materials, accreditation, insurance and travel and quote what they are used to earning.

Many electricians work both directly for customers and as sub contractors, however it is important to distinguish the day rate from the two.

Sub-contract work can be great for building up experience and bringing your skills in line with other electricians. Although you will earn less than working direct for a customer, you will not have to worry about additional business costs.

The average sub contract work rate was £130-£150 per day
Some electricians suggested their customers save money by being quoted a price for the work itself. This allows the customer to budget sensibly for the work needed.
This method allows several jobs to be completed efficiently in the one day which could actually result in better earnings than quoting one price for the whole day, resulting in a win-win for customer and electrian.

The quote for work rate, was £200 + per day.
A small number of electricians chose to work to hourly rates. In London this I £34.00 per hour. This can be useful for smaller jobs and if there may be problems in the property that may present themselves such as removal of furniture before the job starts, lifting of carpets, floorboards, parquet flooring. Hourly rates can work out well if you are working in older homes where it is not clear what has been done before.

Day rates vary between electricians, and depends on factors such as location, parking, and travel costs. Add to this the cost of accreditation and insurance that every electrician has to consider and it is clear to see how the costs are worked out.

Getting work is not just about your day rate. Customers also rate character as a high influence over whether they use an electrician. Factors such as knowledge, confidence, punctuality, politeness and professionalism, advises the company.

The day rate for domestic electricians is £200 - £250 per day
Naturally day rates can be affected by the number of electricians required to carry out the work and if you have a trainee electrician or apprentice working with you. There is also a difference between working two half days to one full day in terms of costs and paperwork as well as whether you charge VAT.

Simply asking an electrician what their day rate is touching the tip of the iceberg. There is so much more to it than simply calculating business costs and adding a bit on for yourself. The resulting day rate is the culmination of marketing research, great customer service, a great job and positioning yourself as a knowledgeable electrician in your area.
However, when all said and done, counsels the company, it is not the amount paid that makes you good. It is “would the customer call you again”.