Electricians Race to the Bottom
Electricians Race to the Bottom: Does It Really Have to Be This Way?
As an electrician, you’ve likely felt the pressure. With competition around every corner, the temptation to lower your prices can sometimes be hard to resist, especially in slower times when the calls aren't coming in as fast. You might think, “I just need to get the work,” or “I’ll charge less than the local competitors (even if they are newbies or DIYers!) to win that job.” But in reality, this approach could be keeping you stuck in a never-ending cycle of price-cutting, stress, and ultimately ... burnout!
You might be stuck in the so called "race to the bottom" where the only way to win is by slashing prices until they no longer reflect the value of your expertise. The problem? When you lower your prices too much, you end up attracting the wrong kind of customers – ones who don’t appreciate your skills and are constantly looking for a cheaper deal. So, how do you escape this cycle and start charging what you’re worth?
The good news is – it doesn’t have to be this way, and you can break free. Here’s how.
1. Charge Enough to Show Your Value
The first step to escaping the race to the bottom is understanding that price isn’t just about what you charge – it’s about what your customer perceives your service to be worth. If you’re pricing yourself too low, you risk coming across as a cheap option, which is the last thing you want if you’re aiming to attract high-quality customers.
You might think, “But Simon, I just need to compete on price!” Well, here’s the thing – competing solely on price is a race you’ll never win. If you do Win ... you've also Lost!! Those cheap prices? They often attract the wrong kind of customers – people who will jump ship for the next bargain, no matter how good your service is. They are also the most critical mostly too and never appreciate your skills! They simple grudge having to pay for anything in the first place (Maybe their own DIY effort failed before they called you too!).
To break free and also work way less hours each week (Reducing stress in the process!), you need to charge enough to reflect the quality and expertise you bring to the table. This doesn’t mean pricing yourself out of the market – it means pricing in a way that showcases your value, attracts the right customers, and allows you to run a profitable business. If you’re unsure of how to do this, check out the Pricing for Profit course, where I break down exactly how to price your services for maximum profitability while still standing out to your ideal customers.
2. Stand Out from the Competition
The electrical industry is crowded, and it can be difficult to make your business stand out. But you’ve got an advantage that many others don’t: your years of experience, your reputation, and your expertise. Leverage these to differentiate yourself.
Regardless of this experience, you can still stand out if you take the time to put some things in place.
Here’s how to stand out:
- Emphasize Your Expertise: Don’t shy away from highlighting your years of experience. Share your story, your qualifications, and your journey in the industry. People trust experience, and they’re more likely to pay a premium for someone they know knows what they’re doing. Consider including client testimonials that speak to your reliability, expertise, and excellent service.
- Showcase Your Unique Selling Proposition (USP): What makes you different from the competition? Do you offer lightning-fast responses? Do you specialize in certain services like EICRs or fuseboard upgrades? Make sure your potential customers know what sets you apart.
- Create a Memorable Brand: Branding is key to standing out in a crowded market. A strong logo, a professional website, and an easily recognizable business name can go a long way in helping you build credibility and trust.
- Invest in Quality Marketing Materials: Whether it’s your website, social media profiles, or marketing brochures, make sure they all reflect the high standards you want to portray. Cheap, low-quality marketing materials, floppy flyers and naff business cards from your own printer will only reinforce the idea that your service is a budget option. If you want to show you’re worth more, your branding should reflect that.
Again, Pricing for Profit dives into these ideas further. It’s not just about the pricing – it’s about building a whole system where your business stands out and attracts the right clients, ones who recognise the value you provide. Then works to follow up at lightning speed to avoid losing future work (even when you are flat out busy!), as discussed next ...
3. Speedy Follow-Up – Don’t Lose the Lead!
You could have the best pricing, the most professional branding, and all the right marketing strategies – but none of it matters if you don’t follow up quickly. The fact is, when potential clients reach out, they’re often shopping around. If you take too long to respond, they’ll move on to the next guy. If you've got your content in front of the BEST customers, they are most likely wanting to know who's ready and willing to start. They want communication and that will mean more to them than price. They just want everything to be quick and easy, in their language. So let's get on it fast ...
Here’s how to keep the momentum going:
- Respond Within Minutes, Not Hours or Days: Time is of the essence. Ideally,
even if you are super busy ... respond to customer inquiries within an hour (there are ways to do this even if it's not done by you). The quicker you respond, the more professional you appear, and the more likely you are to win the job. Have a system in place to ensure you’re responding promptly, whether it’s through a chatbot on your website, a dedicated business phone, or a virtual assistant.
- Automate Where You Can: You don’t have to do everything manually. Set up automated emails or messages that acknowledge the inquiry and let the client know you’ll be in touch shortly. Simple Acknowledgements that say you've seen them and will be back asap is golden! Often they'll wait for you rather than going to the next person in the list. This builds confidence that you’re reliable and on top of things.
- Follow-Up is Key: If the client doesn’t respond after your first message, don’t hesitate to follow up. A simple “just wanted to check in” can be the nudge they need to make a decision. But make sure you’re not bombarding them with multiple calls, Texts, DMs or emails – be polite and respectful. Keep your message simple and straight to the next action, rather than waffling about everything! You confuse, you lose!
Fast follow-up doesn’t just improve your chances of getting the job – it reinforces the idea that you’re reliable and professional. Pricing for Profit also covers how to streamline your follow-up process, helping you turn leads into customers without losing any of the hard work (and money) you put into attracting them in the first place.
4. Shift Your Focus from Price to Value
One of the biggest mistakes electricians make is focusing too much on price. Customers will often lead with, “How much do you charge for an EICR?” or “What’s your hourly rate?” While it’s important to know your pricing (and make it SUPER simple to Quote fast), you should be focusing on why your service is worth that price. There are a lot of ways to set this up so that the customer already knows this ahead of the call (Website, Social Profiles, Posts, Blogs, Videos, Printed ads, etc).
If you can make the customer feel like they’re getting far more than just a service – if they’re getting a solution to a problem, peace of mind, or long-term reliability – you’re not just another option ... You’re the solution.
Explain Your Value: Instead of only quoting a price, explain what goes into that price. Talk about your experience, the quality of your materials, the time you spend ensuring everything is done correctly, and the long-term value your customer will get. NOTE that if you've done this properly, your google reviews will start to mention these things from other people, which is much better than you singing your own praises. Getting google reviews is much easier than some people think.
Provide Guarantees: Offer warranties or guarantees on your work. This shows confidence in the service you provide and makes the customer feel secure in their decision to pay a little more for top-quality work.
Bundle Services: If you offer multiple services, consider bundling them together at a discounted rate (You won't lose out if pricing properly, as you've already travelled there so you won't lose out financially if you work it out correctly!). This can increase the overall value of your offering without directly cutting into your prices and profit.
5. Invest in Yourself – Continuous Learning Pays Off
No matter how experienced you are, there’s always more to learn. One way to stand out from the competition is by continually improving your skills. Whether it’s attending workshops, obtaining new certifications, or learning new techniques, investing in yourself and your business will pay dividends in the long run. Many Electricians are great technically, but lack a lot of the Business skills needed to make a difference. Often it's the small changes that give them a bigger boost too! Often you don't see the woods for the trees, so learning from others, rather than hiding what you do as a secret, or considering a mentor or coach or group of other Electricians from other areas who focus on the same end goal - This changes lives. It's also nice to see that you aren't the only one struggling and that someone in the group has your back and understands you in a way that your friends and family never will.
As I mention in my Pricing for Profit course, learning how to set profitable prices is just the beginning. The real game-changer comes when you know how to implement pricing strategies that work in your business context, empowering you to deliver more value and attract better clients.
Final Thoughts – Escape the Race to the Bottom
It’s easy to fall into the trap of constantly lowering prices to compete with the next Electrican. But in doing so, you risk undervaluing yourself and attracting customers who only care about the lowest price. Instead, shift your focus to offering quality, standing out through your expertise, and following up quickly to seal the deal.
When you charge what you’re worth and offer value that others can’t match, you’ll attract the right kind of customers – the ones who appreciate your expertise and are willing to pay for it. It’s time to stop racing to the bottom and start building a business that thrives on your expertise, not your ability to undercut the competition.
Want to learn how to price your electrical services for profit, and stop undervaluing your work? Check out my
Pricing for Profit course for step-by-step guidance on how to price your jobs to make the profit you deserve, while attracting the very best, higher paying customers, then following up super fast to ensure you don't lose those jobs again!









