User: AC\DC, Location: Florence,Oregon,Lane
Asked on: Friday, May 2, 2025 at 10:33 am EDT
Answered on: Friday, May 2, 2025 at 10:53 am EDT
Question: I have a huge client base of homeowner- number 1 in town with referrals.The gc are another story- had a couple that we butted headsCouple other that are so cheap and cut corners I just walked.Couple other gc use an old school. Electrical guy that is half my rate.Currently got only 3 I work with I like them they like me.Should I focus on new homes with the other gc or just stick to homeowner.I end up working with the gc I hate or they don’t like me half the time just cause the customer request me…What would you do. I got enough work to keep me and two other guys busy. Currently for 3 weeks.Gc just seem to be greedy $&@1- I like plumbers lol
Okay, this is a classic business decision: prioritize profit and stress levels versus growth and potential future rewards. Here's a breakdown of your options and my recommendations
Understanding Your Situation
Strength
Huge homeowner referral base. This is gold!
Weakness
Difficult GC relationships, specifically: Price competition (old-school electrician) Corner-cutting/cheapness Personality clashes
Opportunity
New home construction market (potential for volume)
Threat
Working with GCs you dislike. This leads to stress, potentially lower quality work, and damage to your reputation.
Capacity
You and two other electricians are booked for 3 weeks. You're busy!
Preference
You like working with homeowners and you have good relationships with 3 GCs.
Options and Analysis1. Focus Exclusively on Homeowners (Current Model)
Pros
High job satisfaction (happy clients) Better control over quality and materials Higher profit margins (no GC cut) Less stress Leverage existing referral system (organic growth)
Cons
Potentially slower growth compared to new construction. Limited scale of projects (renovations vs. whole houses) More bidding against other handyman electrical2.
Pursue New Construction with Other GCs
Pros
Potential for high volume and rapid growth. Can establish relationships with potentially good GCs.
Cons
Lower profit margins (GCs take a cut). More pressure on scheduling and meeting deadlines. Higher risk of disputes and payment issues. You might have to compromise on material cost or quality.
Risk of tarnishing your reputation if the GC's projects are poorly managed, or you can't meet the demand3. Hybrid Approach: Selective GC Work + Homeowner Focus
Pros
Diversification (reduces reliance on homeowner referrals alone). Potential for gradual growth in the new construction market. Opportunity to build relationships with better GCs. Control over which GC project to take.
Cons
Requires careful screening of GCs. Need to manage expectations with homeowners and GCs regarding scheduling. You might still need to deal with difficult GCs on occasion if they come with a homeowner referral.
Recommendations
Based on your situation, here's what I would do: Prioritize Your Current Model (Homeowners)
Your success stems from it. This is your competitive advantage. Nurture your homeowner referral network.
Be More Selective about GC Work
Develop Strict Criteria
Minimum profit margin: Don't budge on this. Reputation: Check references. Talk to other tradespeople who work with them. Payment terms: Get it in writing, with clear payment milestones. Communication: Assess their ability to communicate clearly and professionally. Quality Standards: Make sure they care about quality as much as you do.
"Fire" Bad Clients Quickly
If a GC consistently causes problems, stop working with them. Don't be afraid to say "no."
Educate Homeowners
When a homeowner insists on using a specific GC you've had issues with, explain your concerns professionally. Let them know that your priority is delivering a high-quality electrical job, and the GC's practices might compromise that.
Consider Targeted New Construction Opportunities
Focus on Higher-End Builders
Look for GCs who prioritize quality and are willing to pay for it.
Network Strategically
Attend industry events and join professional associations to meet potential GC partners.
Referrals from Homeowners
Sometimes homeowners will ask you to bid on a house they are having build. This helps you side step the GCs and directly work with homeowners.
Specific Action Steps1. Refine Your Screening Process for GCs
Create a questionnaire or checklist to evaluate potential GC partners.2.
Increase Your Rates (If Possible)
You're in demand! If your prices are below market, consider raising them slightly.3.
Invest in Marketing (Targeted at Homeowners)
Continue building your brand and reinforcing your reputation as the best electrician in town.4.
Improve Your Processes
Implement systems to streamline your operations, such as project management software or standardized procedures.5.
Set Boundaries
Be clear about your availability and workload. Don't overextend yourself.
Key Takeaways Profitability Matters
Don't sacrifice your financial well-being for volume.
Reputation is Everything
Don't damage your reputation by working with GCs who cut corners or are difficult to work with.
Your Sanity is Important: Don't let stressful GC relationships burn you out.Ultimately, the best approach is the one that aligns with your values, goals, and work-life balance. Good luck! Flag for review