Build the labour rate properly
There is a right way to set your rate. Most sparkies have never been taught it. The Electrical Estimating Course shows you, end to end.
Profitability
Why Electricians Undercharge. And The System That Fixes It.
Almost every Australian electrician undercharges. Some by a little, most by a lot. Here's why it happens, and the practical estimating system that fixes it for good.
Undercharging isn't a confidence problem. It's a maths problem. Most sparkies were never taught the formula, so the price is a guess. Guesses skew low.
Once you build the formula properly, the right price isn't scary. It's obvious.
The four reasons sparkies undercharge
- 1. A labour rate set years ago that nobody's touched since. Costs went up. Your rate didn't.
- 2. Markup vs margin confusion that quietly costs thousands every year. Nobody ever pulled you aside to explain it.
- 3. Unpriced variations. "While you're here" extras that never make the invoice.
- 4. Fear of losing the job. You drop the price, win the work, and lose the margin instead.
The fix is a system, not willpower
Sort markup vs margin once
The gap between markup and margin is the single biggest profit leak in the trade. The course makes it impossible to get wrong again.
Variations as first-class items
Log every variation in TradieTally the moment it happens. No buried extras, no end-of-job arguments.
See it in TradieTally →Stop negotiating yourself broke
A repeatable estimating system makes pricing a maths question, not a confidence game. The Electrical Estimating Course teaches the whole method.
Common questions
How much are most sparkies undercharging by?
In practice, somewhere between 8% and 25% on labour, plus unpriced variations and missed materials. Run the Profit Leak Calculator on your own numbers to see.
Will customers pay the higher price?
Most will, if the quote is clear, professional and reasonable. Sparkies who undercharge usually find that the customers complaining about price weren't going to be good customers anyway.
How long does it take to fix?
One weekend with the Electrical Estimating Course rebuilds the system. The hard part is having the confidence to send the first quote at the new rate.
Ready when you are
Stop guessing your quotes. Start estimating for profit.
Start the trial, take the course, or do both. The maths doesn't change either way.