Why Do Electricians Charge a Service Fee?

February 6, 2020 4:51 pm Published by Leave your thoughts

One of the most common questions electrical contractors get about their services and business operations is why they charge a service fee on top of the actual costs of repairing and replacing parts. It can be a hard pill to swallow for homeowners who see an extra charge just for the electrician coming out to look at the problem, even if no repairs end up needing to be made.

Why do electrical contractors charge a service fee in North Scottsdale, AZ? Basically, you’re paying for access to a licensed, certified and insured electrician to come out to your home, fully stocked with all of the tools and parts needed to handle any electrical repair you need. The service fee helps to cover a lot of the costs associated with operating as an electrician in your area.

Consider the business expenses

The price you pay for repairs and parts covers the cost of those parts plus labor expenses, but electricians have a whole lot more expenses than just those repairs to cover. For example, electricians are required to be licensed by the state in which they work in order to legally practice. Master electricians need to carry electrician’s licenses, plus a license to operate as a contractor. These licenses are not free, and carry additional requirements that add additional costs.

For example, licenses will just about always require contractors to carry general liability insurance, which protects both the contractor and the homeowners from liability if an accident occurs on a job site. These insurance policies are not free. Plus, individual cities have licenses beyond just the state licenses, which might have additional insurance coverages required, and those city licenses are also not free.

Electricians will also need to cover vehicle purchase and travel expenses, expenses for purchasing and upgrading tools as needed, wages for any support staff (people who answer phones, schedule appointments, manage schedules and prepare books and paperwork), and if they have a physical office space, the expenses associated with running that space, including mortgages, building insurance, utilities and more.

Clearly, these expenses can add up quickly. You can see, then, why electricians would not be able to just come out to a site for free—they need to charge these service fees to cover all of the costs associated with running a business. Service fees are just part of working with a reputable company. You can find a “handyman” on a site like Craigslist who can offer to come out and do some work for you and not charge a service fee, but there’s no way you’ll be able to trust them nearly as much as you can trust a reputable contractor who is insured, licensed and bonded. There’s a much greater risk of low-quality work that could, in some cases, become dangerous.

These are just a few of the issues you’ll want to consider when thinking about hiring an electrician to take on a job at your home. Want to know more about why electrical contractors charge a service fee in North Scottsdale, AZ? Contact Eavenson Electric Co. today to learn more about our service fees—we’ll charge a $79 service fee for appointments, but we’ll also refund it once work is completed!

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