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Electrical contractors make money by charging for their services – by the hour, by the project, or by the square footage of the job. Some offer maintenance contracts for monthly/yearly fees. After expenses like taxes, supplies, training, profits average 1.5-2%.
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It is possible to make six figures as a contractor. With training and growth opportunities, a career as a contractor can be financially rewarding. Location, experience, specialization impact salaries. Those specializing in complex systems like solar panels/wind turbines often earn more than those doing general work.
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To maximize profits, contractors should understand costs per 40 hour week to set rates/discounts. Using a pricing system accounting for expenses per service item can also increase profits.
Factors Affecting Profitability
- Location, years of experience, and specialization impact how much an electrical contractor earns. Those who focus on complex systems like solar panels or wind turbines often earn higher salaries than those doing more general electrical work.
Profitability Strategies
- To maximize profits, electrical contractors need to understand their costs per hour based on a 40 hour week. This helps set appropriate rates and discounts. Using a pricing system that accounts for expenses per service item can also increase profits.