A useful electrical price book starts with your costs and a defined scope for each task. Calculate loaded labor, materials, other direct costs, and overhead recovery before setting the selling price. Then adjust for the actual house and work involved.
Download the electrical price-book spreadsheet. It includes editable task hours, material costs, overhead, and target margin. The figures in the sheet and this guide are illustrative USD inputs, not recommended market prices or standard installation times.
The pricing formula
Price before sales tax = (labor + materials + other job costs + allocated overhead) ÷ (1 − target margin).
Here, “target margin” means the share of the selling price left after all costs included in that calculation. Because we include an overhead allocation, it is not the same measure as gross margin on direct job costs. It also isn't a guarantee of company net profit.
| Input | What belongs in it | Avoid |
|---|---|---|
| Loaded labor | Wages or owner replacement labor, plus applicable payroll costs and benefits | Treating the owner's time as free |
| Materials | Actual purchase cost, delivery, waste, and nonrecoverable purchase taxes | Using an old shelf price without checking stock |
| Other direct costs | Job-specific equipment, disposal, subcontract work, or permit fees | Counting a cost already inside another allowance |
| Overhead | A consistent allocation for office, insurance, vehicles, software, and other indirect costs | Adding overhead again to an already fully recovered hourly rate |
| Target margin | A deliberate business assumption | Confusing a 20% markup with a 20% margin |
Independent Electrical Contractors recommends itemizing labor and materials, checking current rates, and including overhead. Our worksheet allocates overhead by billable person-hour; other allocation methods can also work if applied consistently. IEC estimating guidance
Set a labor rate that covers time you cannot invoice
Suppose a small operation budgets $42,000 in annual overhead and realistically expects 1,400 billable person-hours. Its overhead allocation is $30 per billable person-hour. If loaded labor is $50/hour, the combined cost is $80/hour before profit and materials.
With a 20% target on that cost basis, the labor-only selling rate is $80 ÷ 0.80 = $100/hour. That is our arithmetic example, not a national electrician rate.
Now reduce expected billable hours to 1,000. The same overhead needs $42/hour, so the combined cost becomes $92/hour and the comparable selling rate becomes $115/hour. A rate that worked in a full calendar can fail when the calendar has gaps.
Choose one treatment for travel, procurement, and administration. Some time belongs in a job's labor allowance; some belongs in annual overhead. Record which is which so you don't recover the same cost twice or leave it out entirely. The contractor labor-rate calculator can help organize your assumptions.
Example residential electrical price book
These standalone task examples use $50 loaded labor plus $30 overhead per person-hour and a 20% target margin after allocated overhead. Hours include the assumed task's travel/setup allocation. Actual equipment, access, and approval requirements must be checked before quoting.
| Defined task | Person-hours | Materials | Other direct costs | Cost with overhead | Price before tax |
|---|---|---|---|---|---|
| Device replacement on existing wiring | 1 | $25 | $0 | $105 | $131.25 |
| Ceiling fan on approved existing support | 2 | $35 | $0 | $195 | $243.75 |
| Dedicated circuit on a surveyed route | 4 | $180 | $40 | $540 | $675.00 |
| Six recessed lights with accessible ceiling | 10 | $370 | $130 | $1,300 | $1,625.00 |
The fan is customer-supplied in this example. New support, new wiring, specialty fixtures, drywall repair, and painting are outside that task. Device replacement assumes suitable existing wiring and boxes. The lighting example includes fixtures and a dimmer in materials; see the full recessed-lighting cost breakdown.
Don't add standalone task prices blindly. Two tasks on the same visit may share travel, protection, and setup. Conversely, a separate inspection visit or missing part can add time. Recalculate the combined scope rather than multiplying a minimum service price by every device.
Flat rate or time and materials?
| Situation | Useful starting point | What to make clear |
|---|---|---|
| Surveyed install with specified equipment | Fixed project price | Access, quantities, included work, and exclusions |
| Repeated, tightly defined task | Price-book task | Limits of the standard task and any add-ons |
| Fault with an unknown cause | Defined diagnostic charge or time and materials | Initial allowance, hourly terms, and approval before further work |
| Hidden condition discovered during installation | Separately approved change | Added scope, price, and effect on completion |
Fixed pricing shifts the risk of an incorrect time allowance to the contractor. Time and materials needs a clear record of time and parts. Either approach can be explained clearly; neither fixes missing scope.
Keep four details beside every saved price
- Scope: what the task includes and excludes, including customer-supplied items.
- Quantity basis: each device, each circuit, person-hour, or complete job.
- Cost date: when you last checked supplier pricing and availability.
- Production assumption: the site conditions and hours behind the number.
Update supplier-sensitive items before sending a bid. Review labor assumptions after completed jobs and overhead when your staffing, vehicle costs, or billable capacity changes. An old price book with a new date still produces old prices.
In Dave's Pricebook, save the reviewed items you reuse in estimates. Keep the supporting cost calculations in your worksheet and check the saved selling prices when costs change. Dave can help draft an estimate from supplied scope; it does not verify hidden wiring conditions or guarantee local prices.
Common questions
How much should an electrician mark up materials?
There is no single percentage that makes every business profitable. Consider purchasing time, handling, warranty exposure, overhead already recovered elsewhere, and the margin required for the complete job. A $100 item at a 30% markup sells for $130 and has a 23.1% margin before other costs. Markup vs margin
Is the price-book spreadsheet a customer quote?
No. It contains internal costs and assumptions. Transfer the reviewed selling prices into the electrical estimate template, which is designed for customer-facing scope and charges.
Can I use these prices in Canada?
Use local costs and one consistent currency, and check applicable taxes and local requirements. The example dollars are USD. Changing the currency label without changing the costs is not a local estimate.