By Simon Barker
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November 8, 2022
How do you earn as a local electrician in the UK? The issue of pricing and how much to charge is a thorny one for local electricians. It crops up in social media posts as a frequent topic for discussion in groups and forums. So, how do you earn as a local electrician in the UK - in a small town or a large city? It has always been a reasonable assumption that to make more profit and earn more money for yourself, you need to raise prices and charge more for jobs. But, when you look at your local competitors and see they are charging less than you, the fear kicks in that customers will choose cheaper quotes, and you may end up with no work at all! The problem with undercutting competitors’ prices is that it can become a ‘race to the bottom’, and this is a race nobody wants to win, right? The only prize for the winner of this race is stress from not earning enough to cover costs, and you will end up with nothing to show for all your hard work – if your business survives, that is! How do you earn as a local electrician in the UK and avoid winning the race to the bottom? This blog explains how to position your electrical business to stand out from the competition and make sure that you are the preferred electrician in your area, even when your prices are higher and there is a lot of competition for business! Put in the groundwork! Of course, you can’t just pluck a price from thin air! Before you can decide what to charge, you need to work out how much money you need from your electrical business, on a personal level. Although this will be different for everyone depending on personal circumstances, the first step is to work out how much you need to earn for: Essentials – monthly survival. This will decide your basic monthly earnings. Nice to have – regular treats you don’t need to survive. Once your business starts to make a profit, add a figure for treats. Luxuries – things you promised yourself you would have when your business became successful. When your business becomes a roaring success, add a figure for luxuries. At the end of this task, you should know how much you need to earn annually, monthly, weekly and daily at these three stages of your business, determined by how many weeks per year, days per week and hours per day you want to work (I use spreadsheets for this). Please remember to be realistic but at the same time don't think too small! You have set up your business to provide you with a nice life. Nobody wants to be a busy fool who never gets a break and can’t retire when they should have done so long ago. Once you have decided your worth and what you need to do to achieve it, an amazing thing happens! Suddenly, competitors’ prices don’t matter anymore . You are standing out as a local electrician, with your own pricing. Yes, this is scary, and you may think that you will never be able to charge more or afford those luxuries, but don’t worry, I will show you how later! How do you earn as a local electrician in the UK - Advantages of a pricing strategy You will be amazed what happens as a local electrician with a pricing strategy in place. You will find: · You can charge more than competitors · People will pay your prices · They will be nicer people than those who haggle Over time, you will see patterns emerge of what customers to search for, the type and value of their home, their profession, their age, etc. By uploading your customers on to Google Maps or viewing the jobs you have completed in ServiceM8 (or alternative Apps), you will see how to target similar customers whether by social media groups, magazines, postcards, paid adverts or videos. NOTE that you'll be duplicating more of who convert already (rather than just those that enquired but never went ahead!). Higher paying customers tend to be nicer, less stressed, and more loyal than those angry customers who constantly haggle on price and don’t appreciate your worth. They are also more likely to recommend you to others and give you positive reviews on Google or other platforms. This will increase your reputation and ranking and raise your profile both as a local electrician and on the internet. Quote techniques There are things you must do and things you must avoid when providing a quote. Do Be clear (using a proper, repeatable format which is quick to create) Upsell – bundle products together such as EICR and PAT testing at a special price or offer AFDDs on socket circuits or domestic fuse board upgrades for slightly less. This is your version of "would you like fries and a drink with that?". Stick to the quoted price. If you discount, it will look like you were trying to rip them off! Don’t Automatically discount the price when someone asks if it can be done cheaper. Just ask what item they would like to remove, or if they would like you to complete the job in stages to suit their budget. Don’t fret if they say no. Some people might, but others will say yes. Trust the system and fill your schedule with work that meets your needs as well as those of your customers. How do you earn as a local electrician in the UK? Certainly not by reducing your prices, not making enough money, working long hours, and getting stressed out! How do you earn as a local electrician in the UK – Customer experience Okay. So you have done all of the above and now your electrical business is profitable, you are no longer exhausted and have free time and money for family activities. Woohoo! The next step is to double your prices (Incrementally). If you do this, you only have to work half the hours, or halve your customers to make the same money. How can you do this? By focusing on the customer experience. Happy customers are the key to a successful business, so make small changes wherever you can, such as: · Working clean · Tidying up · Smoothing out the enquiry and quote experience · Acknowledging customer enquiries · Make payments super-easy · Look professional (branded vans/clothing etc.) You will be doing exactly the same job as your competitors but making the whole experience from initial enquiry to job completion a breeze for customers. This is where you can really raise your electrical business above the competition , and customer reviews and recommendations will reflect their positive experience. How do you earn as a local electrician in the UK – Tried and tested results I tested this out in both a small town where I was one of five electricians, and in a large city with more than 300 accredited local electricians! Guess what? In spite of pricing at the higher end of the spectrum and with an imminent recession, my diary is full of profitable work that earns five star reviews from loyal customers. For those of you that don’t know me, I am Simon Barker and I have been an electrician since 1988 , with the first 19 years’ experience in the car industry, semiconductors, and with other world-class manufacturers. I then started my own company in 2007 and spent some time as a software developer after achieving my maths/computing degree. I love systems and how they can make my business so much easier to run. Systems give me free time during evenings and weekends to spend with my family, rather than doing admin! As you can see, I have a long track record and I would love to give you some completely free resources, so you can learn even more pricing techniques that enable your business to stand out. You can get my free FLOWING guide to setting up and growing your electrical business. What’s more, you can sign up for my email updates (See bottom of Page) , which will let you know when I post new blogs or videos, as well as making sure my tips for running a successful electrical business find their way into your inbox. For even more tips and tricks of the trade, you can also check out and subscribe to my YouTube channel and Facebook Group . I would love to hear from you and find out other issues you would like me to talk about. I hope that this blog has given you some answers to the question how do you earn as a local electrician in the UK?. I would love to help this industry grow because the pool of people within the industry is shrinking and I believe that there will alwyas be many opportunities to prosper as an electrician , whether as a job or with your own business. So, come and join me and let’s do this. Let’s make a difference to our industry together. Let me help you to get your electrical business FLOWING! 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