MASTER ELECTRICIAN TELLS THE REALITY OF MOST CONTRACTORS, AND HOW TO NOT GO BROKE!

Most electricians are lousy in business, right? A lot of the bluecollar trades just aren't are not people pe people persons, right? >> Dad, you know what I hate about being an electrician? >> Getting up early. >> No. >> Finding good people. >> No. >> Collecting I invoicing. >> I hate invoicing, man. A couple jobs I've had recently where I'm finishing up the job at a customer's house and they always ask for a discount. whether I'm there 30 minutes, I'm there 15 minutes, they think, oh, they need a discount because of that big price. How do I avoid this, you know, awkward confrontation with these customers? And well, see, now you're getting into the reason why most electricians are lousy in business, right? A lot of the bluecollar trades just aren't are not people pe people persons, right? They don't want to deal with that part of it. They don't want to deal with the estimating and certainly collecting and all the nonsense. >> Yeah. >> So the the bigger issue is cuz here you're an owner and you don't like it. Could you imagine your techs or the employees doing it? So, you know, you really can never um avert that. You know, there's never going to be a way to to completely eliminate it. But there's certainly ways that we can mitigate it and make it easier. And I'll give you a couple examples. >> Yeah. You know, the first thing you want to remember is there are certain people, there are certain demographics that just >> have to ask for a discount. It's just in their nature. It's in their blood. They feel that if they don't ask for a discount that they left some money on the table, right? So, your response to that, whether it being yes, maybe, or no, doesn't really change a lot in their mind. they if you did a good work, you did a great job, you know, they just have to ask for a discount because if they feel if they don't, they'll sleep at night thinking if I only ask them for a discount, maybe I could have got. So that's just the way their mind works. >> Okay? >> So what you can do to mitigate some of that is never invoice at the very end of the job. >> Why? >> Well, because you want to give let's let's say we go into a fine dining, we go into a beautiful restaurant, very expensive restaurant. What happens? We we see the menu, we see the pricing, right? We order, we get the drinks come in. Then then what happens? It's ready to get the bill, right? So, what do the waiters do? They come by and they leave you the bill and usually something folded around it, right? And a and a some kind of a sleeve. And they just set it down there and they walk away. Gives us the opportunity to go, "Wow, it's how much?" You know, we all have that little sticker shot. We get over it. And if we have any questions like, "Wait, I only ordered this. Why didn't you order that?" Like any discrepancy. Okay. >> Then the waiter can come back. you can tell them what the discrepancy is. If there isn't any, you can just give them the credit card, but you know what you're build for. So, you want to kind of do the same thing as a trades person. You want to kind of give them the ability to look at the invoice >> before you finish. Okay? So, what I recommend is that you partner up with a specialty company, a company that specializes in invoicing, estimating. Uh we won't mention any names here. A couple of them have approached us. Um but once we find one that we really like, we'll promote it a little bit. But the one that we use right now, what I do is I have a very detailed estimating sheet. >> Okay, >> that's one thing that will help you with it. >> So the preparation you use in the beginning, in other words, um is is the panel in the basin, right? Is it in the garage? >> Is there furniture in the way? Right? Uh is there a drop ceiling? Is it is it drywall? Do you want me to paint? Do you want me to patch? So having everything clearly identified, especially in a garage, right, where, oh, I'm going to get the Model Y and I want the Charger over here. Okay. But then you show up and there's paint cans and and you know, lawnmowers and power washers and everything there. Y and now what? You're going to you're the one that's forced to move that out of the way because you're scheduled. You're on, you know, you what are you going to do? Not do the work for that's in the way. Mh. >> But if you're prepared with that and and you can put it on as an item and you can ask the customer, uh, is there anything we're going to need to be moved? If they say no, you don't check it, right? There's no charge for it. So, having those defined, uh, descriptions, >> that's a good idea. >> You You want us to paint, you want us to patch, you want us to move the furniture, you want us to put it back, that's all accounted for, right? >> So, you have them sign before you do the work. So during the estimating process they you you can forward them that sheet so they can agree because what will happen is oh that was my husband my husband didn't or my wife and they always want to play that off right so you can say ma'am Mrs. customer. Here's the sheet that you agreed to. Here's the price. Now, >> because we have, you know, a a tremendous amount of qualified tools and training and what it takes to just stay in business, >> people overlook that. They don't realize that your specialty drills and tools and feeler bits and everything that we use, >> Yeah. >> helps, you know, you know, make the jobs more efficient. So they see you come in thousand bucks, you're there an hour, but they don't realize the the thousands of dollars behind you. So >> exactly >> that's a long lot long winded story. But here's the main point. Here's what I'm recommending. >> You're 75% done. >> You when you get to the point, you know, every job has that that that fulcrum point where like you're into the worry mode, right? Like, oh, I have to do this. It's in your mind. you whether it's the wire pull or the termination and the tight panel, there's always some aspect of like once that's done, it's like, you know, you're gliding home, right? You're gliding to it's time to get paid. >> So once you reach that, whether it's pulling the wire from a basement all the way into a garage, right, and running the condo, you get all the wire pulled, you're ready to terminate. At that point, you go to your van and you submit your invoice. Mhm. >> Now, I don't want to mention names, but if you're using a company and you have all that information and you're ready to submit the invoice, >> Yep. >> submit the invoice electronically. >> Why? >> Well, because we don't we're beyond the age of handwritten invoices. Clipboards and all that. That's just a direct if you show up with a clipboard, you are in the direct reason why you're going through what you're going. >> What you know, you've given the menu item, the finish item, and now you're expecting payment, >> right? So now he's got a little sticker shock. He's like, "Wow, was this much?" Okay, whatever it is, right? So now they're at that shock moment. And you have to understand, you're the owner. Could you imagine your employee how they feel like, "Wow, you're charging this much, but I'm only getting paid this much. That money doesn't go to me." >> So by doing it electronically, I do not recommend handwriting invoices anymore. >> Okay? >> Uh I won't do that. find a software where you can submit, you can collect whether it's um you know credit card, zel, Venmo, PayPal, cash, AC, whatever it is, okay? >> And then you say to the customer, >> and that doesn't this is the big important part, >> okay? >> I don't care if you're a oneman show because most electricians are one or two people, right? >> You you as the owner are the office manager, you're the procurement manager, you're the electrician, right? you're you're the every hat in the business, right? So, you go back to the van and you find that invoice and you submit it to the customer. >> Yeah. >> Now, as you return back to the job, whether you're terminating the final part or you're ready to test or start to clean up, you're doing your labeling, you tell the customer, because they'll come around. They come around, oh, Mrs. Smith, the office, the office sent the invoice. Now is a time. Please review that. You can pay that directly on your phone. I like that. >> If you have any issues or questions, let me know. We're going to be finishing up soon. >> Um, but the office sent the invoice, not oh, I just sent you the invoice. You know, third party like, hey, this is what we agreed upon. The work will be done and now we're ready to collect the payment, right? it. So, you've given them time to to look at it, establish it, and now is a great time for you to grab a charge because we show up in EVs. You know, we have electric vans. Yeah. For EV charger jobs, >> you do an EV charger job. You can actually use our equipment to test it, right? Make sure that it's putting out the proper voltage and everything because we can see that on our vans. So, now you're grabbing a little charge. Now you can go back and start cleaning up, start dressing everything up, put your labels on it while they have time to look at the invoice, right? Okay. And then most likely most likely in my experience, they're going to like our work. They're going to like your appearance. They're going to like what you show up in. They're going to like the quality of the work. >> They're not going to have any problem just paying the invoice. >> Yeah. >> We're talking about the select few areas of the world that the people just have to ask for a discount. That's in their blood. It's in their culture. It's not against you. Okay. Okay. Even if you say no, there's no discount. They might be like, "Okay, I just figured I'd ask." >> Yeah. >> But why not think about their side? Oh, my husband. Oh, I have kids. Oh, it's it's a little bit of a game, right? >> Yeah. Yeah. >> Now, what what can you discount them? Well, if you pay me cash, >> right? And that's the other important thing about invoicing. >> Make sure your credit card processing fee is in that final price. >> Mh. >> With the ability for that to be deducted. >> Yep. Okay. Don't do it the other way. Yeah. >> Let's say the invoice is $1,000. >> Yeah. >> But it's $1,035 if they use credit card, right? >> You want to make sure the invoice says it's $1,35. >> And if you pay cash, check. >> Yep. >> You know, direct payment, not through the credit card. It's it's a,000. It's very clear. And that's your discount. Well, Mrs. Smith, I mean, if you pay cash or with a check, I can give you this discount right here. Yep. Right. So again, let's recap. By having a very detailed and clear estimate in the beginning, have them sign off on that, right? Knowing that we're going to be here on this day, we expect the conditions to be this way, and we're going to give you this, right? >> Yep. >> Then you finishing the job, you submit the invoice. There should be no problem with them just paying it. >> Okay. >> And this is a perfect way to train your staff to deal with it, too. You don't want to hire a great electrician and him only not like, you know what, if I had to do this, I might as well work on my own because they don't want to deal with that. So, get the right tools, invest a little bit more into your business by getting these software companies that specialize in this type of work, right? >> And that will help you mitigate >> that awkward >> that awkwardness. And that's that's been like that from day one, my friend, whenever you're doing residential work. And the other final tip is that's why it's important to find a customer that is the the principle like a commercial account where it's not their money, >> right? They have a capex budget. They have a budget for that work. But when you're doing residential, you're dealing directly with that homeowner, man. Every dollar they pay you is one less dollar they have to buy >> GI Joe with the kung fu grip. >> Exactly. >> Does anybody get that? The GI Joe with the kung fu grip. >> No. What's that >> from? Eddie Murphy. >> Oh, okay. >> From Trading Places, the movie. >> No, I never seen it. >> Yeah. They're talking about trading and he's like, "Oh, everybody's busy on Christmas because they want to buy GI Joe with the kung fu grip." >> Oh gosh. Yeah. You know what? That really helps cuz that really really saved me. you know th those little tips and tricks is what make uh a very successful trades person against the other one because you know if you let's say you just rude to the customer hey Mrs. Smith, this is what it is. You agreed on it. Your husband agreed on it. So, look, this is the amount that's due. Yeah. >> All that does is take away your great review here. You've done a fantastic job. You've showed up in great a great equipment. You've dressed properly. You got great tools. You did a great job. And now you've you've just nicked the end of the job, the very last interaction with that customer, and that's what they're going to remember. >> Mhm. >> So, don't take offense from people asking for a discount. >> Okay. But being able to have a rebuttal and a reason for what you charge. Got it. >> Is what's important. >> That's That really helps. Thanks, Dad. >> All right. Handy to Sparky. >> You got it, my friend. >> Thanks, Dad. Thanks, Hannah. >> Yep. We'll see you on the next one. >> That was good advice.