I recently had the opportunity to interview an employee from a competitor’s electrical company who was applying for a position with our company. During our conversation, he shared that employees at his current company are not paid hourly wages or salary; instead, they work on commission. He explained that his daily goal is to boost sales by adding extra work to the service call.
One example he proudly described involved changing a wall plug, and by the time he completed the task, the invoice amounted to over $1,200.00. While I had heard about such practices, this conversation provided firsthand confirmation that this approach is indeed being used in today’s market.
With over 35 years in the trade, I believe the only way to achieve such significant increases is through high-pressure sales tactics, often involving items the homeowner may not be familiar with. The impression I got from him was that he engaged in these practices regularly.
Consider the following scenario: If an electrician enters a home with a 50-year-old electrical panel and suggests to the customer that, due to the panel’s age, breakers could fail and internal contacts could be getting rusty, the unsuspecting homeowner might be convinced that a replacement is necessary. This statement is unequivocally false. The total cost of this upgrade ranges from $1,600.00 to $2,400.00 plus tax, depending on the individual’s motivations.
It is crucial to seek advice from a trusted tradesperson. Recommendations from others serve as valuable references, demonstrating a company’s track record and history.
On a side note, January 1st, 2016, marked the implementation of the new electrical code book, introducing significant changes that have impacted the cost of simple renovations or new construction. If you’re curious about these changes, feel free to give me a call at 780-705-3696.
I hope this article helps you and your clients avoid situations like the one described above.
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