Electrical estimating and contracting tips for growing your electrical contracting business.
What is the main thing that limits how many jobs and what size jobs you can do?
- The answer is the amount of credit you have to buy electrical materials.
Example: Say you sell a residential job for $3,500.00 and your material cost is $1,200.00.
Say you have zero credit to buy materials and you must fork out cash to buy all your materials out of pocket. The amount of jobs you could do would hinge on how much cash you could cough up to buy materials. No cash no work.
The more credit you have to buy materials, the larger the jobs you can do and the more jobs you can do.
Why three distributors?
- Because electrical distributors represent different manufacturers like panel & switchgear manufacturers.
One distributor may represent Square D and another General Electric. If you need a Square D Panel you will need to buy it from a Square D distributor, in order to get the best price.
Example: If you buy a Square D panel from a General Electric distributor, the GE distributor has to go out and buy the panel from a Square D distributor, and you will have to pay double mark-up.
Then, another reason to have credit established at multiple distributors, if you reach your credit limit and they cut you off at one distributor (which they usually do when you reach your credit limit) you are still able to buy materials somewhere else.
Obviously, you must be able to buy materials to stay in business. You do not want to use your cash for materials. You will have plenty of other ways to spend cash. Like on labor or job expenses.
But, you might ask, “What if I have lousy credit?”
Red Rhino is online so you can log on from any computer with an internet connection. The Cost of Red Rhino is $99.00/ Month with an affordable setup fee.
Red Rhino Electrical Estimating Software offers a 30 day free trial.
You will immediately get access to our online software.
Training videos will guide you step by step to learn how to navigate.
Call us if you have questions.
888-492-5565 x 1