How to price electrical work from your costs

Start with the cost of delivering a defined scope. The following numbers are an illustrative example, not a recommended electrical rate.

1. Establish your hourly cost

Suppose annual owner pay and overhead total $117,600 and you expect 1,200 billable hours. The cost to recover is $98 per billable hour. Use your own figures in the break-even calculator. Non-billable travel and administration reduce available billable hours.

2. Cost the specific job

Two labor hours at $98 cost $196. Add $60 in materials and $20 in additional job costs: total $276. Include each expense once. Do not add allocated overhead again if it is already included in your labor rate.

3. Calculate a price with margin

At an illustrative 20% margin, divide $276 by 0.80: $345 before tax. The difference is $69. This margin is only as complete as your included costs; it is not a guarantee of net profit.

4. Define the customer offer

Write the scope, quantities, exclusions and conditions clearly. Check access, required permits, supplier quotes and actual labor requirements. Apply the tax rules relevant to the job.

5. Learn from completed jobs

Compare estimated labor and material costs with actuals. Adjust your own price book where work repeatedly takes longer or costs more.

Build this example in the price-book tool · Understand markup versus margin