The Real Reason some Electricians cost more than other Electricians

In the year 2025, everything is expensive! It's hard for everyone, including myself, to have anything left at the end of the week and month. So, as an electrical contractor, I understand when a potential new customer that needs electrical services is shopping around for the cheapest price. Let me explain why some contractors charge more money than others. Coming up in the trades, working for the union and doing side work after work and on the weekends, I saw a lot of older electricians doing work for residential customers of theirs, making up a price per hour on what seemed good to them. In those days, from 2010-2016, it was anywhere from $30-50 an hour, and some guys were charging $75-80 an hour. These electricians were highly skilled but were a one or two-man crew doing things after work or on the weekends, and some guys were doing it full-time as a business. In my trade, there are a lot of small mom-and-pop outfits with 1-5 electricians in the entire business. These businesses, I found when working with them, had set prices for things like services and made up hourly rates based on what they thought other electricians were charging. Some carried insurance, and some didn't. Some were licensed, and some were not.

Now, there are other electrical outfits out there, most of the time the bigger ones. They have overhead, labor rates per man, insurance, marketing, and warranties. These are the companies that have data and analytics to come up with an hourly rate they need to charge to have their business run smoothly with a profit and provide as much value to the customer as possible. My business is this type of business. Numbers are power, and knowing your numbers allows you to give the best value to any new and existing customers. These businesses usually charge $125-225 an hour for a professional electrician

.Today, my advice is to vet the company and see if they give you a great feeling that they will perform an amazing job for you. Keep in mind, almost any electrician in 2025 will be charging $80-225 an hour and have that number built into their estimates!