How to Price Electrical Jobs So You Actually Make Money

Undercharging is the most common financial mistake solo electricians make. It usually doesn’t happen because an electrician doesn’t know their worth — it happens because they’re guessing at their numbers instead of calculating them.

Here’s how to price your work so you’re actually profitable, not just busy.

Start with your true cost per hour

Before you can price a job correctly, you need to know what it actually costs you to run your business for one hour. Most electricians skip this step and end up pricing based on gut feeling — which almost always means undercharging.

Your true cost per hour includes:

• Your target wage — what you want to pay yourself per hour
• Overhead — truck payment, insurance, tools, phone, software, fuel
• Taxes — as a self-employed electrician, plan for 25-30% of net income
• Unbillable hours — estimating, driving, admin work, slow periods

Here’s a simple way to calculate it. Add up all your monthly business expenses. Add your target monthly take-home pay. Divide by the number of billable hours you realistically work per month (usually 100-120 for a solo operator).

That number is your minimum break-even hourly rate. Your actual price should be higher than this to leave room for profit and growth.

Flat rate vs. hourly — which is better?

Both work. The right choice depends on the type of job.

Hourly pricing works well for troubleshooting, service calls, and jobs where the scope is genuinely unknown. It protects you when a job turns out to be more complicated than expected.

Flat rate pricing works better for standard jobs — outlet installs, panel upgrades, EV charger installs, ceiling fan replacements. Customers prefer flat rates because they know the cost upfront. And if you’re efficient, you make more per hour than you would billing hourly.

The key to flat rate pricing is knowing your numbers. Price each standard job based on your estimated time plus materials, with a margin built in for unexpected complications.

Don’t price against your cheapest competitor

This is where a lot of electricians get stuck. They check what other electricians charge locally and price just below them to win jobs. The problem is, you don’t know if those competitors are profitable. A lot of them aren’t.

Price based on your costs and your value — not someone else’s rate. If a customer leaves because you’re $50 more than another electrician, that customer was probably going to be difficult anyway. The customers worth having are the ones who value reliability and quality over finding the cheapest possible option.

Always present a written estimate

Verbal estimates are a liability. They lead to disputes about what was agreed, they look unprofessional, and they make it easy for customers to shop around and forget who they were talking to.

A written estimate does the opposite. It shows you’re organized and professional. It clearly outlines what’s included and what isn’t. And it gives the customer something to sign, which reduces scope creep and payment disputes down the line.

Your estimate doesn’t have to be fancy — it just needs to be clear, professional, and signed before work starts.

Build in a materials markup

Materials are not a pass-through cost. Your time spent sourcing, picking up, and managing materials has value. A standard markup on materials is 15-25% above what you paid. This is industry standard and completely reasonable.

Be upfront about it if asked — frame it as your procurement and handling fee. Most customers understand and accept it.

Raise your prices

If you’ve been booked solid for more than a few months without turning work away, you’re probably priced too low. A simple test: raise your price by 10% on your next 10 estimates and see what happens. If you still win most of them, raise it again.

The goal isn’t to have the lowest price. The goal is to be profitable enough to build a sustainable business that isn’t grinding you down.

Want a professional job estimate template that makes your pricing look polished and trustworthy? The Goopuh Electrician Kit includes a fully editable estimate form built specifically for electricians.