I`m pretty sure that when you read the question above, you answered, “Electrician!” After all, this magazine is all about the electrician and the electrical subcontracting industry. What you may not know is that the most successful electricians succeed because they have learned to conduct consultative sales. You may be wondering why this type of sale is better than telling your potential customer that you`re “just going to hit the code.” Maybe the customer called you in your head for a quote for a fire alarm system, and you provided it. Most entrepreneurs think software is the answer. You are only partially right. We are in the software business and will not sell software to an entrepreneur who does not understand how a profitable electricity company should operate. Training in business management and estimation (especially take-off) is therefore in the first place, not software. The entrepreneur must organize, manage and control the business. Obviously, the profit in electrical contracts does not increase simply because the volume increases.
Master systems are not designed for electricians who only want to offer more jobs and by any means they want to preserve the job. The old adage, offering more jobs and getting more jobs, may work in some scenarios, but there are really no guarantees. The only thing the entrepreneur can guarantee is that his business has now become an estimating factory, that overhead costs are increasing, that he may be getting a lot of work with minimal margins, and that he has a business that has gotten out of control. A knowledgeable consultant can help you with the fundamentals of the business, but even a team of consultants would struggle with the electrician`s specific problems. The people who really know the score are the people who know your business as well as you – you and your successful electrical contractors! It turned out that there was much more to do. But there were other significant costs that receive very little attention. The name of these costs was overhead. And it has more impact on profits than most entrepreneurs realize. So, are you just an electrician or a consultant? I hope you are convinced that being a consultant and sharing your knowledge is the solution. DBP Electrical Consulting`s Electrician Training is designed for the new or growing entrepreneur. Don`t be guilty if you have a reputation for being a great electrician but a weak businessman. Being small and hard-working will only get you here as an entrepreneur.
If you want to do business-to-business work, you need to project a positive professional image. It starts as soon as you have the first communication with a potential customer. Has the contractor not been able to reconcile the actual costs with the estimated costs? In recent years, we have employed external consultants who have helped us build systems and processes to ensure the success of our business to the next generation. Today, there are many business processes and software packages that have been developed from general business practices, personal opinions, information from contractors and estimators solely for the sake of convenience and speed. The problems of a single company cannot be solved by a committee. The modern electrician needs proven tools that are applied to his specific situation. Proof of this is in industry reports that the average profit is 3%. They also reported that the electrical industry is plagued by high overhead costs and a lack of production.
If entrepreneurs had all the answers, the average profit would be much more than 3%. Master Systems is considered a pioneer of solid business systems for electricians. We continue this tradition today and still teach these methods to electricians today. In most cases, we won`t tell the contractor what they want to hear, but we will show them how to make money with electricity contracts. In fact, we are more persistent today because we want electricians to use Master Systems exactly as the systems are intended, profit being the sole judge. By taking what we have learned and applying it specifically to the electro-subcontracting sector, we are able to be objective and identify the problems we know exist in your company. We are not like most consultants; We will not tell you what your problems are and then we will leave. We`ll help you identify your critical issues and resolve them every step of the way. You decide what help you need. We become your partner of responsibility. Master Systems is a nested electrical subcontracting company system consisting of: Master Systems is an electrical subcontracting company system designed to generate more profit for the electrician. The system components solve many of the problems that have plagued the electrical subcontracting industry for years.
Other industry reports show that the average profit margin at all levels of electrical subcontracting is less than 3%. In other words, the actual profit is less than 3%. But the estimated average profit is 8%! And what happened to the 5% difference? It paid for the cost overruns. Two misconceptions that have had a very strong impact on how contractors have tried to solve the problem of cost overruns are: Our training workshops are unique, just simple instructions presented in an easy-to-understand form with the simple aim of providing a better way to run an electrical subcontracting business. This led to the development of Master Systems, an enterprise system that has proven to be the best for the electrician who desires success and longevity. Our research studies have shown that an electrician in his thirst to make a big show on volume does not get his share of the profits, and he ruins a lot of good deals for good contractors. Since profit is the difference between income and costs, it is obvious that there must be income before there can be a profit. The income in an electricity company is per job. Annual income is the sum of the work performed during the fiscal year. Master Systems was developed in 1963 with the simple aim of providing a better way to run an electrical subcontracting business. We continue our research today.
We found that most electricians don`t have the right controls and estimators have too much flexibility. In general, it is the company that runs the entrepreneur, not the entrepreneur who runs the business. The truth is really that most entrepreneurs don`t want to do what is required and turn to others to take care of it. If contractors had ensured that the actual cost matched the estimated cost, the industry`s average profit would be 8%, not 3%. Eliminate the causes of cost overruns and the estimated profit becomes the real profit. ACM Electric Corporation is licensed and fully insured to meet your commercial electricity needs in the five boroughs of New York City. We offer a skilled unionized workforce through I.B.E.W. Local #3. We provide trained personnel to install/maintain new electrical services or upgrades, lighting systems, lighting control systems, building management systems and fire alarm systems. Whether it`s new construction, renovations to an existing room, interior fittings or service repair work, we`re the electrician for you.
• What is the best way to position your business for current and future growth? • What`s the best way to promote your electrical subcontracting business – to make sure it stands out from the competition? • What is the best way to maximize your resources? • What is the best way to determine the right path? Spend 30 minutes with Jimmy Hovey, FREE MBA. .