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  #16  
Old 08-18-2007, 07:49 AM
jones26r jones26r is offline
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Join Date: Aug 2007
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What made owning an electrical business difficult is that the market is saturated with electrical contractors.

I placed a phone book ad and just having the name of my business with a telephone number cost me over $80 per month. Of course, the bigger companies have full-color page ads that just drown out my little ad.

I believe to be a good electrical contractor, you have to be established for a good length of time or have a different niche. A friend owns his own company but he mostly does HVAC control work. A niche that not many other electrical contractors have.

Another problem with owning a company is that if you estimate wrong, it could hurt you. An example, my friend estimated certain breakers to cost him around $500 per breaker. My friend needed about 6 of these breakers. When he went to place the order, months later after being quoted the $500, that price was actually $5,000 per breaker. That is a huge screw up. Not only did he not get the $500 per breaker in writing, but the miscalculation will now have to come out of his pocket.

I also found that customers expect to pay for the material and not the labor. Yes, copper prices have gone up but that is life. Some customers just did not understand that.
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