How Much to Charge If You’re an Electrician?
One of the most challenging things about being a self-employed tradesman is working out how to charge your customers. Not only do you have to quote sufficiently to cover your time, transport, and any necessary equipment to carry out the work, but you also have to cover the costs of running your business. In addition, you have to pay for things like your tools, electrician's insurance, website and marketing, vehicle, and various other expenses; all of these must be factored into your quotes. So, how do you know what to charge as an electrician? We've put together some information so you can ensure you're paid fairly for your expertise.
How do electricians charge for their time?
According to a UK Trade's Salary Review, electricians consistently earn the most money out of all the trades active in the UK. These rates are perhaps due to the technical difficulty of their work and the fact that they require certifications and accreditations to carry out their business. Most electricians quote for jobs in one of three ways:
- Per hour: This tends to be how electricians quote for domestic work.
- Per day: For ongoing work, a day rate is easier to calculate and is often slightly reduced when compared to the hourly rate.
- Fixed fee: Sometimes, when negotiating at the start of a contract, an electrician might decide to quote a fixed price for their services.
How you quote is totally up to you, but you need to make sure you're getting paid fairly for your time and services.
How much should an electrician charge?
According to Check-a-Trade, the average cost of an electrician is £45 per hour and £225 per day. You can quickly calculate this equates to an excellent salary, and the earning potential of skilled and highly sought-after electricians is extremely high. But remember, self-employed electricians have a number of costs to cover, which are factored into their quotations.
What costs does an electrician have to cover?
An electrician's take-home pay isn't likely to be the hourly or daily rate that they quote to their clients. In reality, self-employed electricians have a number of essential and operational costs to cover, which include:
- Electricians insurance – public and employer's liability, buildings and content insurance, motor insurance, etc.
- Rent and rates on office space or storage lockup where you'll keep your equipment.
- Licenses, qualifications, and training.
- Equipment, vehicle insurance and tax, etc., and travel expenses.
- Website and marketing.
When quoting for your work, you must factor in a certain percentage of your fee that contributes to covering the various costs associated with running your self-employed business. If you don't, you will quickly eat away at any profits and struggle to make a living.
Although quotations can be difficult to get right, you need to make sure you don't undersell yourself. Start at the UK average of £45 per hour/£225 per day and go from there. To know what you're up against, you may want to look at competitors in your local area too. Once you gain further experience and build relationships with clients, you can always amend your prices as needed.
One other area we can help with is making sure your insurance costs are as low as possible. We are a specialist tradesman insurer and have the cheapest premiums we've found on the market. Speak to our team to find out more.