Electrical contractor on Carte Blanche

[Dave A]

For those who missed the expose on an electrical contractor on Carte Blanche last night, here's the transcript.

Clearly the guy's pricing is "heavy handed" to put it mildly, but did the story really do the issues justice? Personally, I don't think so.

First off, it seems the guy isn't even an electrical contractor! According to the ECA neither the company or the "electrician" are registered with the ECB! Chris Greager says they can be prosecuted.

But will they be prosecuted?

The second thing that itched a bit was Chris's ideas on markups. Seriously, he's recommending no more than a 20% markup on materials!

We're a service industry, not Tony Factor style discount chainstores.

What do you think is a fair mark-up on materials?

[desA]

Better to always go for comparative quotes.

That rascal needs to have a visit from a few knee-breakers. He seems to bully the customers into a position where they give into his pressure.

I'm amazed that folks pay up. Tell him to take his stuff out & get out, or as the Durbs jargon used to be - "Take your comics & vy ou broe".

[IanF]

The second thing that itched a bit was Chris's ideas on markups. Seriously, he's recommending no more than a 20% markup on materials!

We're a service industry, not Tony Factor style discount chainstores.

What do you think is a fair mark-up on materials?

Dave,
TGIF of course 20% markup on costs is more than fair.
But then you get your cost accountant involved and add for overheads, insurance, obsolescence factor, interest on stockholding and a few more costs you can identify.
On a more serious note our minimum markup is 40%.
Chris's company must be busy with a 20% markup

[Dave A]

Chris's company must be busy with a 20% markup

Chris Greager is the National Operations Director of the Electrical Contractors Association of South Africa. When it comes to understanding and arguing the Electrical Regulations there are probably few better. But when it comes to the financial side of being an electrical contracting business...

Quite obviously not his field of expertise.

[desA]

Would component markups vary by industry, or by product type?

What about the labour component? Is some of this 'hidden' inside the parts markup?

What are the 'norms' in the SA industry?

[AndyD]

I try to keep our materials prices somewhere in the ballpark of the suppliers 'list price'. Usually we get around 35-55% discount as a business or bulk consumer so basically my discount would be my mark up.

*Edit*
Geeeeez, I just read the transcript and I think I might have soiled my rods. I can only assume that this guy might be mentally ill or something. I can't believe the nobody's give him a good hiding on the spot when they received the invoice. It's the most ridiculous thing I heard in a while and I hope someone puts him behind bars for awhile.

[murdock]

the question is the markup...on the cost you pay at the wholesaler or the retail price at the wholesaler...i add 25 % on the price i pay at the wholesaler...some charge 25 % on retail from the wholesaler...which would mean a 125% markup at my current pricing...now thats making money.

ECA no comment...still waiting for money they promise to collect from outstanding debt...to date never collected a cent...my advice if you are a small contractor stay away from these people for as long as you can...if you are a huge company it might pay you... for the labour issues you will have.

ECB dont waste my time...it is merely a data base...collectling money for no benefit to my bussiness what so ever.

like a tv license if you never had one they dont bother you...if you had one and havent renewed it they will take the clothes off your back to get their money.

[murdock]

just read the transcript...this is what happend when you get a plumber to do an electricians job

sounds like the goverment was involved some how...maybe it was a member of paliment wifes bussiness

[Dirkdes]

goog day guys.
i was wondering, what is the standard rating is on power points if quoting on construction sites.

[AndyD]

More info would be helpful Dirkdes. Are the construction sites domestic houses of commercial or industrial. When you say 'power point' what are you referring to?

[Dirkdes]

Thanks for replying AndyD..
I am referring to domestic housing. If you do a quotation on a house you get the plans and see that there are 70 plug sockets and 80 light switches, stove circuit, 3 geyser circuits, ect... now for each point you ask a price for example R450 per plug point (70 x R450) and R500 per light switch (80 x R500), ect... now I was wondering what is the real price these days per point and what in included or excluded.... chasing, piping, wiring, labor, drive time, and all the things that a quote must be based on...