How much profit can my electrical company expect to make?

This is a common question that we receive at iBid Power, but you have to understand that it is more complex than just sticking a markup number on an estimate and thinking that is what you will make in profit.

You need to understand that when it comes to profit, every electrical contractor will make a different profit, even if the projects are similar. The reason is because every electrical contractor's numbers and the way they execute the completion of the project will be different.

By numbers, we mean a contractors cost of doing business - their overhead costs. If a contactor's overhead costs are high, and we know that the market will only allow so many markups, then the profit any contractor can make on any project is dictated by their overall overhead cost for running their business. This can drastically reduce your profit potential if you don't have your overhead costs under what the market allows.

By executing the actual installation of the project, we are saying that every electrical contractor's abilities to complete a project are different. A contractor can be more aggressive with the completion of the project affecting the total labor hours used to complete the project. Also knowing how to purchase material to reduce the overall projects cost will increase a electrical contractor's profit potential.

Your business profit potential depends on your skills to complete the project with as many cost saving approaches as possible to ensure the highest profits possible. Another aspect to increasing your overall profit potential is to know what your costs are at any given time on that project with job cost tracking.

Job costing against your projects is a vital step and is necessary to increasing your profits on any project that iBID Power estimates for your electrical company.iBID will help you maximize your profit potential by developing a complete step-by-step profit plan for your electrical business to follow. This profit plan will show your company exactly what you have to do to reveal your highest profit possible. We will run your numbers for your electrical business and compare to what the market allows. Your profit plan will then tell you how to reduce your overhead costs to increase your profit potential. We will also show you how to purchase material cheaper and increase production to lower labor hours needed to complete any project that we estimate for your electrical business. Also, we will help you track your projects with job costing techniques that will reveal profit "danger areas" that if not caught would result in a loss for that project.

These techniques will show you how to watch for these profit dangers and stop them to increase your profits on all of your projects. All of these steps will be taught to your electrical business so your company can achieve the highest profit potential possible.

If you would like iBID Power to go over your profit plan with you please contact an account manager today at 330.633.4880