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Custom Estimation Systems for Electrical Contractors 2nd Edition
Q & A Section
Welcome to the Q & A section for our Flat Rate Pricing System. Below you will find common questions directly related to the customization & use of this system, along with their corresponding answers. You are encouraged to submit your individual Flat Rate questions by using the form at the bottom of this page (use the contact us form for all other inquiries), and I will do my best to answer them as concisely and expeditiously as possible.
Q - I loaded the program, now what? - Bob A - Make sure that you've make a copy of the original file and keep it in a safe place in case you need to refer to it again. Look through the different categories and make sure that no parts are corrupted (everything looks normal). Start with the Read-Me, Home Page and Copyright sections, then go to the Setup page and begin by answering the questions on this page.
Q - I know I can add categories and tasks but can I rename the existing ones? - Carlos A - Yes you can, but I would be very careful about which ones, since some values are dependant on cell values from other pages. I would not recommend that you alter the Setup or Copyright sections, as these will affect the program's function. When a value is dependant on a cell value from another page, then the name of that particular page is part of the cell's formula, so if you change the name, then the program won't be able to find it and will return an error. An example of this is the formula in cell D19 in the Appliances category. The formula looks like "=PRODUCT('SETUP PAGE'!$C$57,'SETUP PAGE'!$C$55,77.5)". Notice the 'SETUP PAGE' in the formula. Now if you were to change the section's name to STARTUP PAGE, then the formula would also have to be changed, otherwise it won't find the value it's looking for.
Q - Why is the spacing between the tasks all different in each category? - Rocco A - The spacing has to do with how it would print. On the computer it looks like the spacing is different (& it is), but it is positioned to print out correctly. If you're not sure about how it would print out, then just click the print preview & then scroll down to see what the pages would look like when printed. Remember that presentation is important, so always check to see that the pages look symmetrical & clear before printing.
Q - I was entering a price into the D column in the Ballast section and accidentally erased the formula. What do I do now? - Claudio A - You can look at the corresponding formulas in the D column and replace it from one of these (remember to change the price), or you can copy the formula from the original file that you should have saved unaltered. If you're copying the formula from the D column but from another task, then make sure to replace the corresponding instant rate change cell in the formula. For example, if you're replacing the formula in the Ballast section in D34 with a formula from cell D66, then you will need to change it as follows: Copy cell formula from D66 =PRODUCT('SETUP PAGE'!$C$77,'SETUP PAGE'!$C$74,225) Paste into cell D34, then change to =PRODUCT('SETUP PAGE'!$C$76,'SETUP PAGE'!$C$74,100) The 225 is changed to 100 since this is a price change corresponding to the price in cell D34 , and the $C$77 is changed to $C$76 since this task is dependant on the instant rate change value in the cell C76 in the Setup page.
Q - If I add a category or task, how can I have the instant rate changes work with it? - John A - You can add a value to the instant rate changes section and then paste a formula from another task to this cell, then you will have to change the instant rate change value (as discussed above) to the corresponding instant rate change cell. Or you can simply use an instant rate change value from another task. There are many ways to do this, just remember to have the corresponding cell values in the formula.
Q - Are the prices that come with the system, the actual prices I should be charging? - Walter A - Definitely Not! Remember that these prices are there as samples (clearly stated!) and not for actual use. This is a customizable program so you need to enter prices that work for you and your customers. In the future, I may be including (or selling separately) localized pricing for set tasks, but not in this edition.
Q - I'm not sure I understand how you price out a wiring job. What do you mean by point to point pricing? - Mark A - You need to look at a job in parts instead of as a whole. You break it down into different tasks and then add them up. This will take a little longer, but eventually you may be able to average out your prices for that particular wiring task and then you can set a definitive price without having to break it down into separate steps (tasks). For example a customer asks you to wire another 6" recessed light to an existing 15 Amp lighting circuit. So you would add the separate tasks of : Wiring from an existing light to another light (1st task), then Installing the Recessed fixture (2nd task). So this job would be priced as (based on the prices that came with flat rate guide): WR RX 15 at $220 (including service call fee) + (plus) FX LN RC6 ST IC at $175 (the add-on rate) So the total will be $220 + $175 = $395 (to wire & install a standard 6" IC Recessed light to an existing lighting circuit).. Service contract members would have a discount (say 10%) so their price would be $355.50 If you're already there and they added this task, then the price for the WE RX 155 would not include the service call fee ($75) and instead would be $145 So then the job as an add-on would have been $145 + $175 = $ 320 and the member discounted price is $288
Q - How would you recommend I print this? - Mark A - I would highly recommend that you print this out in color and on quality paper. remember that the customer will be looking at this so it needs to appear professional. Use a nice binder and follow the relevant instructions on the Read-Me section.
Q - Why do you have the TM in the book if you are not showing the times? - Robert A - As I explained in the comment section in cell E18 in the Appliances section. You don't need this for the customers. It's just for you and your employees to keep track of how long a specific task should take. So if you have an employee that likes to takes his (hers) time doing a job, this way they'll know what's expected of them. It's also a way for you to weed out the slower non-productive employees that you may have in your company. Remember that time is money, so the more work your employee does, the more money you both make. Using a flat rate system is generally better for faster employees. You also keep track of the quality of the work by sending them back to fix screw-ups at no costs to the customer, and you can even charge them (the employee) by deducting from their end a % off the job the they completed just for wasting company's time / truck, etc. Remember you're not only loosing potential profits by not having them available to take on another job, but it cost money to have them drive back to the customer and repair something they should have gotten right the first time. It sounds a little harsh, but to make money you'll need to get rid of the nonproductive employees.
Q - You have abbreviations for each task, what am I supposed to do with these? Do I have to memorize them? - Bob A - No, not necessarily, even though the more you use the book the easier it will be for you and / or your employees to remember them. It's a good habit to try using them when writing out a job receipt, this way it's easier to track.
Q - In the conduit section you have an additional charge of 10% for each 10ft of added conduit above the 50ft initial run. This 10% charge doesn't seem to be enough in many cases. What would you suggest? -Gerry A - As I've previously stated, the prices are determined by the user. So I would suggest that if you don't feel that 10% is enough then you can simply charge more (i.e. 15% or 20% or 30%). Whatever works for you and your customers. Keep in mind that the best systems will be the ones that are tweaked from time to time, so don't be afraid to adjust your numbers up or down.
Q - What is included in Hard wiring SF Dryer (Is this just labor or are the basic parts included)? Replacing a breaker is the breaker cost included? - Glen A - The prices for the appliances are Hook-Ups & not
wiring from panel & breakers, etc. The only thing included in the hard wire
should be connectors, bushings, etc. Whatever you would actually need to take
the existing wire and hook it up
Q - We purchased the Flat Rate last night and think it's a great fit for us. Two questions: On the Disconnects page these (DSC-SF-240-30C), appear to be the same task but the prices vary, why? Can you please tell me the hourly rate you used to figure the flat rates so I can adjust the multiplier according to our figures. Also, I was surprised that there wasn't anything for 2*4 and 2*2 fluorescent lay-ins categorized in the software. - Ryan A - Hi Ryan, thanks for your purchase and glad to hear it's a great fit for you. Regarding your questions: 1) Individual tasks are intended to be used as-is and/or be customized by each owner. There are approximately 600 tasks, and most are distinctly different. In some areas, I have repeated the task in order to expand the layout on the page. This allows the individual owners to add or change the task, without having to duplicate the page layout within that category. In other words, in the Disconnects category, where you see the same abbreviated task, you can change the type of disconnects or if you don't need to add tasks to this particular category, then just place 0 (zero) in the main formula for these specific tasks (as per the instructions in the Read-Me section). It’s important to remember, that the prices are examples and not actual prices that you should use with your customers. Also, you should not calculate your prices based on your hourly rates. The main point of using a Flat Rate system is to make more money than you would by a T & M method, so you don't want to calculate your prices solely based on an hourly rate. The instant rate multiplier is to be able to increase / decrease (by any specified %) entire tasks and / or categories all at once, and is not an hourly rate multiplier. That’s why the TM column is not used for any calculations but is there solely to keep track of the allotted task time. 2) The fixture category is one of the largest in the book with over 120 individual tasks already listed. As you can see, it’s easy to add or adjust any tasks that you may want within any category. Also, from time to time, individual owners provide us with some of the additions and changes that they’ve made to their systems, and these in turn, are made available to all of our other users.
Q - I specifically want to address the pricing set up. I am unclear on how this works as far as customizing our pricing to fit the Des Moines, IA market. I noticed in one of your Q&A pages someone had also submitted this question, however I am still unclear. It seems to me that you have to be able to use an hourly rate + material costs in order to ever come up with a price and if there is not a place to make a global adjustment to the hourly rate how can I customize the pricing without calculating it based on past experiences? - Jeremy A - Hi Jeremy, the Estimating software is a guide / foundation for you to apply your prices to specific tasks and then have it printed out in a Price Book format. The program will automatically calculate many things for you, but the price of a task is something you'll need to calculate & enter.
Q - Lets say I charge $50 to install a square D Homeline breaker. So all I do is go to column D and place the $50 into the last space on the formula. Also If I do not charge for a same day service I would type in 0 for that on the setup page to make the pricing lower for the services. - Thanks Steve A - Hi Steve, yes you would enter the price as the last number in the formula (as shown in the Read-Me page), and you would leave cell D4 set at NO. The Same Day Service Call fee is a manual input fee. This is done by placing Yes in cell D4. Leaving it as No (the default) means that any price that you have entered on the setup page for Same Day Service Call, will not be added.
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