Almost three-quarters (74%) of UK electricians don’t feel confident handling their company finances, and many have lost money as a result, new research has revealed.
The study, conducted by ElectricalDirect, the specialist retailer of electrical products, surveyed electricians from across the country and found that only 26% are comfortable dealing with the financial side of their business.
This includes pricing up jobs for customers, with a quarter (25%) admitting to having lost money because they’ve made mistakes while giving quotes.
A simple way for workers to check if their prices are reasonable is to see what other electricians in their area are charging for similar jobs. However, almost three-quarters (73%) of respondents said that this isn’t something they do.
Furthermore, the vast majority (76%) of electricians do not account for the cost of living or inflation rates when giving quotes to customers. This is despite living costs rising at their fastest rate for thirty years and inflation predicted to reach 8.3% in April, meaning take-home pay could fall heavily.
Although they don’t specifically consider the cost of living, more than a quarter (28%) of UK electricians have raised their prices since the start of 2022, and four in five (80%) have upped their quotes in the last year.
However, despite the pandemic significantly disrupting the industry, one in twenty (5%) have not increased their rates in the last two years. This equates to more than 2,000 electrical businesses across the UK.
Older electricians are more likely to have kept their prices constant despite COVID-19, with a fifth (20%) of over 55s maintaining their pre-pandemic rates. In comparison, just 2% of millennial workers (25-34s) have done the same, and only 6% of 35-44-year-olds.
Across the UK, electricians in Yorkshire and the Humber are the most likely to have upped their fees recently, with three in five (60%) having done so in 2022. On the other hand, just 7% of electrical businesses in Northern Ireland have done the same – the least of any region.
Dominick Sandford, Managing Director at ElectricalDirect, said: “The rising cost of living is going to impact everyone in the coming months, both personally and professionally, and electricians should at least consider it when providing quotes, to ensure they’re not leaving themselves short.
“Managing a company’s finances can be complicated and mistakes can prove to be costly. That’s why we’ve partnered with a specialist to provide advice to electricians on how best to handle their money.”
For expert advice on how to handle your company finances, visit: https://www.electricaldirect.co.uk/blog/financial-expert-shares-top-four-tips-for-electricians