A/C pricing

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George Stolz

Moderator
Staff member
Location
Windsor, CO NEC: 2017
Occupation
Service Manager
Hypothetical:

Two A/C's at a recently built house are called for pricing. The lead guy on the job is called to head over to the residence, scope it out, and call back with an idea on parts and labor.

The lead guy does as told, gets an idea, calls back and (over-)estimates 1.5 hours for 2 guys, using 150' NM total, plus the normal trimmings.

Does that sound like $900 to you?

150' 10-2 NM
2 30A A/C disc.
12' LFNC, 4 str. connectors
3.0 Hours Labor
0.0 Hours Drive (Crew on Project)
 

jeff43222

Senior Member
Re: A/C pricing

Materials/permit costs are what -- $200 at most? That leaves $700 for 3 man-hours. Nice work if you can get it.

Let me know if you have any A/C jobs. I could still make decent money after paying out for airfare and lodging. :)
 

macmikeman

Senior Member
Re: A/C pricing

What we seem to have left out of this estimate is workmans comp insurance, general liability insurance, office overhead expenses, vehicle and tool purchase expenses, taxes on all proffit, Osha regulations that affect productivity, time wasted on waiting around for inspector to show up,(plenty of times the inspector also has to wait for the contractors to show up for inspections also so were not trying to start up something here,), the owner's salary since he is the guy who takes all the risk . Have I left anything out? I bet I have left out plenty, but this is my off the cuff response. Add all that stuff in and see if the $ price is too low. Me I usually charge $450 - $500 for each split system ac I wire up.I still can't afford that offshore fishing boat after more than 20 years of electrical contracting.
 

growler

Senior Member
Location
Atlanta,GA
Re: A/C pricing

I don't really understand the question. If you are asking if this is the right price for the work. It's impossible to quote jobs in another area. If you got the work , it sounds like he did a good job. If you need work and he over estimated for the area then it's time to drop prices a little. You never want to get all the jobs you bid, if you do, you're to cheap. If you don't get a certain percentage , of 25% to 30%, then you may wish to adjust your pricing. I like the idea of raising rates until a certain amount of business goes to someone else. That tells you what the market will bear, and that is the correct rate. Always remember that profits are not made on one job but are spread out over a period of time. There are jobs that are winners and some that are looser's but the average is what counts. What if a builder goes out of business tomorrow ( bankrupt ), how does the company cover the lose of unpaid balances.
 

petersonra

Senior Member
Location
Northern illinois
Occupation
engineer
Re: A/C pricing

I figure it's worth what someone is willing to pay. If the guy paying the bills goes elsewhere, than maybe the estimate was high.
Or maybe they really don't want that work, but at a high enough price they will take it.
 

southernboys

Senior Member
Re: A/C pricing

George if I understand what happened you have to remember that we the leadman are always too slow too far behind. The other is material is always so damn precious since its the last one in the world. I will admit the last one describes me on a job but only if a guy passes over material thats laying on the ground because hes too damn lazy to pick it up. Sorry George for that rant if you did your job to the best of your ability let the office ***** and moan and try to do better next time. Did you drop off your resume?
 

seths

Member
Re: A/C pricing

it would be around 1000 to 1200 here in my area, but then again i rent a 900sq townhouse for 1500, not including utilities. so it sounds like a good deal to me.
 
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