The number one mistake new electrical contractors make is pricing their labor by what they were paid as a journeyman and forgetting everything else it costs to run a business. If you were making $35/hour as a JW and you charge $75/hour as a contractor, you’re probably not making more money - you might be making less. Your labor burden (payroll taxes, workers’ comp, health insurance) is roughly 30-40% on top of your wage. Add overhead (truck, insurance, tools, phone, software, advertising) and the fact that you won’t be billable every hour you work.
Market rate varies significantly by region. In high cost-of-living areas (California, New York, Pacific Northwest), service call rates of $150-200/hour are standard. In lower COL areas, $100-125/hour. Flat-rate pricing is increasingly common and can be more profitable than T&M.
The conversation nobody wants to have: raise your prices. Most small electrical contractors are underpriced, and underpriced work attracts price-sensitive customers who are the worst to work with. If 100% of your quotes are accepted, you’re priced too low. Target 70-80% close rate on quoted work.