Jan. 14, 2026
S3 EP14 Will Electricians Make More Money in 2026? The Profit Formula Inside!
Most electricians think they have a pricing problem… but what if it’s actually a confidence problem?
In this powerful episode, Joseph and Clay break down the numbers that finally make profit real and show you how to build pricing that earns you what you're worth without overthinking it or needing to rely on your accountant to run your business.
You’ll discover:
- Why the average $120/hr rate is keeping you broke (and what you should actually charge)
- The real reason your accountant can’t save your bottom line
- How to finally get confident in your pricing (and sell with clarity)
- The 3 invisible factors that kill your gross profit — and how to fix them
- Why hyper-local marketing is the future of high-profit electrical business
...Plus, the genius $0 marketing play that sold Joseph on the spot — and how you can apply it this week.
If you’re serious about making 2026 your most profitable year yet — this one’s for you.
💡 What You’ll Learn:
-The new 2026 SSR (Simple Service Rate)
-Tool Profit Goal Targets: 50–60% Gross
-20% Net Why 1 extra call/day won’t fix your business Inventory tip that slashes your COGS
-The “Good Neighbor” hack for hyper-local domination
⚡️Want more tools, strategies & trainings to take your electrical service business to the next level? Join the community inside SLE Pro App!
⚡️Podcast Powered by Duromax Generators. Making turnkey power solutions easy. 📧 Email: jesse@duromaxpower.com
🌐 Website: www.duromaxpower.com
📞 Call: 909-490-5789
⚡️ Book your complimentary call with Forrest Schwartz
CoFounder and CEO of TopLineGrowth
Focused on helping companies grow their top line revenue via digital marketing. 🌐 https://topline-growth.com/sle
⚡️Jump into the Million Dollar Electrician Community and connect with real business-minded sparkies! https://www.facebook.com/groups/844859526389567
⚡️If you are an electrician looking for trade-specific business training in pricing, options, sales, attraction, and marketing strategies, Then our Loop Method is your answer!
⚡️Learn how to serve and earn at the highest level. Contact us, we’d love to help!
#electricianbusiness #pricingstrategy #tradesprofit #electricianmoney #servicebusiness #electricianpodcast #2026businessplan #milliondollarelectrician #grossprofit #raiseYourRate
00:00 - Why Most Pros Undercharge
00:47 - Show Intro And Mission
02:01 - Door-To-Door Lesson: Sell The Pain
03:46 - Profit Focus For 2026
04:28 - Workshop And Pricing Workbook
05:00 - Stop Outsourcing Profit To Your Accountant
07:36 - Use The Simple Service Rate Tool
10:58 - Seeing Your Price In Black And White
12:06 - Billable Hours And The 50% Efficiency Slider
15:20 - When Revenue Grows But Profit Doesn’t
18:20 - Targets: COGS, Gross Margin, Overhead, EBITDA
22:00 - Three Levers: Price, Options, COGS
25:44 - Raise Price With Confidence
27:08 - Increase Average Ticket With Options
30:20 - Reduce COGS: Routing, Vans, Neighbors
WEBVTT
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People don't know what they need to charge in order to be profitable.
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And because they don't take these steps of going through these tools and really putting their numbers in, that's when it can be really difficult to stay true to your offer.
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Because I'm sure there's an electrician listening to this right now saying, well, yeah, I know I gotta charge 300 an hour, but people don't buy for me at that rate, so I offer less or I try to speed it up.
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I think this particular exercise is so impactful because when you see it in black and white, like these are my numbers, really everything that comes from my business, put it into the formulas, and it came out with this.
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It's in black and white, this is what I have to charge.
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That actually builds your confidence to then deliver a more beneficial presentation.
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You can take that offer because you know if you don't, you actually lose.
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So I just want to make sure that anyone's listening like this is a huge value guy.
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If you do it right, it'll actually help you sell better too.
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Hello, hello, hello, and welcome to the Million Dollar Electrician Podcast, where we help home service pros like you supercharge your business and spark up those sales.
00:00:59.759 --> 00:01:07.760
I'm Joseph Lucani, and together with my co-host Clay New Meyer, we're here to share the secrets that have helped electricians sell over a million dollars from a single service band.
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Now it's time for sales.
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It's time for scale.
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It's time to become a million-dollar electrician.
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Hello, hello, hello.
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Welcome back, guys, to another Duramax Power Podcast.
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Million Dollar Electrician, super pumped to be here.
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Happy New Year again.
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Welcome to 2026.
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Joseph, how are you doing today, my brother?
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I am feeling absolutely amazing.
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You know, honestly, this new year has a lot.
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We have a lot in store for it.
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But, you know, personally, I set some really big goals.
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I'm really, really excited to start doing it.
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And honestly, it just feels like day one hitting the ground.
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So let's just get it.
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Speaking of hitting the ground, just before the show, you were telling me someone just door to doored you.
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Yeah.
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Oh, yeah.
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I and actually, this is a great advertisement.
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But I actually wasn't there for it.
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My wife put the thing on the thing, but she pretty much said that there was a person who just came by and put something in the mail.
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And what happened was it was a blank, looks like a homemade thing, right?
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But it the catchphrase was save yourself from the ladder.
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And it's a gutter cleaning service.
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Now, specifically, the cool thing about this is I have it on my list for 2026 to install gutter guards for my house because I've got a 40-foot roof that I don't want to get there and reach.
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It's crazy tall.
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I don't want to risk itself.
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So the cool thing was the tagline was save yourself from the ladder, which is the number one reason why I don't want to do it.
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And he literally had a picture of like a bunch of gross shit coming out of the gutter in his hand, and it literally says, Text this number, text gutter to this number.
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And the cool thing that's I think really awesome about it is I consider myself a premium buyer in that I like buying things that are turnkey solutions.
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So by his door-to-door basic two cent marketing that he just produced with a business card and one blank piece of paper, I'm certain that as long as he doesn't f up the sale or f up his process or make me think that I'm not he's not a good guy, I'm gonna end up investing with this particular person.
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I love that, man.
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So black and white for us.
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Are you gonna hire them if they don't mess this up?
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Yeah.
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I mean, literally, that's the best thing about it.
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I need someone to do it.
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I was gonna do the research for the person.
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It's on my 2026 goals.
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I know I already need to have it anyway.
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And he spoke specifically to the emotional reason why I want it.
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It sounds great.
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We're kicking this off well then.
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This is one of my favorite phrases.
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You just cheated up with that.
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Market the problem you want to solve, and the sale is yours to mess up.
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All they're gonna do is fall short on service, and Joe will undoubtedly go somewhere else.
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However, they spoke to a specific challenge, a pain point they know people have, which is don't go up the ladder.
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It's dangerous.
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They look at a 40-foot roof and go, Oh, there's an opportunity.
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You look at it and go, There's a ladder I don't want to climb.
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100%.
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Nailed it.
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Great start to the show, man.
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Super pumped.
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If you guys are here, you already know from the title of this one.
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We're gonna help you be profitable in 2026.
00:03:57.199 --> 00:03:59.919
We probably don't talk about profit enough on this podcast.
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Today's the day, you know, the numbers they get thick, it can bore, it can bore you, uh, overwhelm you, especially when you're listening.
00:04:06.479 --> 00:04:10.400
But uh, hey, we just passed 1,050 subscribers on YouTube.
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Wow.
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That's a small little shoulder brush there, but we're proud of it nonetheless, which means more people are actually watching this than ever before.
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And just to honor that, I got a whiteboard here beside me today.
00:04:20.160 --> 00:04:27.360
So I'm even going to pull out a little bit of a whiteboard and we're gonna review a bit of just a touch, touch base on what's coming up in this workshop.
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Uh, January 7th, that's already passed at the time you're seeing this.
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Don't worry, there's a replay available.
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And I want you to know that uh we've got a brand new 2026 simple pricing workbook for your service department that's actually pre-populated with three different levels of electricians, noob, hustler, or all-star, just meaning where you are on your million-dollar journey, so that a lot of the numbers you'll see are already templated for people your size, just based on a little bit of information that you give us.
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So you can grab that too.
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I'm gonna tell you how later in the show.
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Joe, you ready to get into this?
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I'm so pumped because profit is one of those things that people consider almost like a mystery where we know we need it, we don't know how to get there, or what's appropriate, or what's not, or what's a good value.
00:05:08.959 --> 00:05:12.000
So honestly, I'm just just as pumped to get into it as you are.
00:05:12.319 --> 00:05:18.800
Yeah, I'm gonna tie into that and say, I think too many people rely on their accountant for this side of the equation.
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And those same people, quite often, at least a good percentage that we work with in Sly Pro and on the app here in our community, would say that they don't really trust their accountant to do the right thing by them or to instigate, to be the aggressor, to be the person to bring it up and actually outbound us and tell us what needs to happen to be profitable, to get more revenue, to be more uh tax compliant, but also to drive tax savings.
00:05:46.000 --> 00:05:48.879
Joe, have you ever felt that way about your own accountant relationships?
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Yeah, I uh very much so.
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So in my previous business, one of the things that we would technically argue about with my partner and I is what kind of accountants we would hire.
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And we had different views on what a good accountant qualifications should be.
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Um, and there was one particular situation where we had had someone where we wanted him on retainer.
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We're like, we're gonna work with you, you're gonna be our guy, and as a result, you're gonna go through our books and you're gonna find things and you're gonna find ways at different levers that we can become more successful and profitable.
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And we were paying a monthly stipend to have him do that.
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And we audited after a while.
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And we're like, right now we're paying X, but we're not really seeing a return because he's not finding anything.
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And when we questioned him on it, we're like, so what are you actually doing for this amount?
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He's like, Well, I'm your accountant.
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It's like, okay, no, we get that, but what are you doing?
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He's like, Well, I'm just your accountant on standby.
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It's like, why are we paying you then?
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Well, because I need the money.
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And it was like, oh like no.
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Awkward, awkward indeed.
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Yeah.
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So he ended up disappearing pretty quickly.
00:06:48.639 --> 00:06:51.920
But yeah, yeah, I've had uncomfortable uh accountant situations.
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And while a lot of our followers, listeners, viewers now probably relate somewhat to that, maybe their accountant hasn't been so forward even, but you still don't feel you got someone who's got your back.
00:07:04.160 --> 00:07:06.319
Again, how often is your accountant calling you?
00:07:06.480 --> 00:07:08.240
How often is your accountant reaching out to you?
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Because most accountants, and guys don't realize this, or just like most electricians, carpenters, gutter cleaners, or anyone else, um, you know, any of these trades, you become a specialist in that trade, you kind of perfect your art, but you tend to maybe not focus as much on customer service training.
00:07:26.079 --> 00:07:29.439
Maybe you don't focus as much on the communication aspect as we should.
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And that's kind of the stuff that we lean into here.
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And so by the time you learn these skills, uh it seems to be a common theme, Joe, that guys just want an accountant to treat them like they're treating their customers.
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I'm right there with you.
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And I think that's what separates premium buyers and what separates us from the group.
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Because when you start offering premium service to all of your clients and you start delivering that service, you start to notice its absence in everything that you want in other people.
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So, as an example, I've I really believe in doing the premium service model, but when I want to hire someone, it's like a huge void.
00:08:06.000 --> 00:08:10.560
I remember the Arbora situation last year where it was like I went through multiple, couldn't find the right guy.
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I was like, shut up and take my money kind of stuff.
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Or even did a podcast about it.
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Yeah, you know, so that's why I'm bringing it up.
00:08:16.639 --> 00:08:27.199
So there's so many things where I want to get someone to treat me the way I'm want to treat my own customers, but it's so rare that when you find one, the price isn't even the factor anymore.
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It's like I want to work with someone who's gonna treat me like I've treated them.
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Yep, absolutely.
00:08:32.639 --> 00:08:33.919
You nailed it on the head.
00:08:34.080 --> 00:08:38.000
And so we're always looking for those service providers, and I want you guys to find them.
00:08:38.240 --> 00:08:49.519
I personally believe in, especially once you get closer to your seven-figure journey and beyond, having uh regular touches with your accountant, even if there's not a lot there, just to say yes, everything's good.
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Yes, let me know we're good, yes, how can we improve this?
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And quarterly is a great moderation of those touches, at least, at least semi-annually.
00:08:59.360 --> 00:09:02.799
So every six months, I'd want you to actually talk to your accountants.
00:09:02.879 --> 00:09:11.919
And in time, as you grow, you'll have a fractional CFO, someone come in-house and help with finance and help with guides, uh, leadership decisions on the financial end.
00:09:12.240 --> 00:09:16.080
But let's wash away from that here for a moment and dive into what we intended to today.
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Our goal is for you to rely less on your accountant and more on your newfound intuition and skill sets in managing your business.
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Because while we don't deal with kind of post-taxes, we deal with EBITDA.
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So earnings before interest, taxes, depreciation, and amortization.
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I love tax accountants.
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For everything they do after, we could still manage our business before the tax, before that position.
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And with their insights, we could do even better.
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Let's talk about how to manage that before scene.
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So down.
00:09:46.480 --> 00:09:58.480
So, Joe, I'm gonna take us right back here for a moment and say that I think a lot of people think that we just help with the sales and the service side and getting your revenue up, but they don't realize the profit side that we help with too.
00:09:59.519 --> 00:10:08.720
And what actually happens when someone first comes into our sphere of influence is they grab the tool like we're offering today, our simple service rate tool.
00:10:08.960 --> 00:10:29.679
And that pricing exercise where you're setting up your rate actually requires you to go through the expenses that you're already enduring, the people you're already paying, the software stack that you're already paying for, uh the burdens on the labor that you may be paying for, and the accountants themselves that you pay for, and all that stuff rolled up into it.
00:10:29.840 --> 00:10:32.080
Not to mention marketing as well, of course.
00:10:32.240 --> 00:10:33.600
We can't forget that.
00:10:34.080 --> 00:10:43.919
With all that stuff rolled in there, our pricing tool helps you account for it properly and project how much work are we actually going to do this year?
00:10:44.080 --> 00:10:49.440
And it does so really quite easily, along with a guide that explains why at every step of the way.
00:10:49.919 --> 00:10:58.080
And because we're able to do that, you're able to have entire clarity on what your pricing should be, but also what your profit should be.
00:10:58.320 --> 00:11:08.080
You know, something that really just struck me like a bolt of lightning was as we go through this, people don't know what they need to charge in order to be profitable.
00:11:08.240 --> 00:11:16.480
And because they don't take these steps of going through these tools and really putting their numbers in, that's when it can be really difficult to stay true to your offer.
00:11:16.720 --> 00:11:25.919
Because I'm sure there's an electrician listening to this right now saying, well, yeah, I know I got to charge 300 an hour, but people don't buy from me at that rate, so I offer less or I try to speed up the clock.
00:11:26.159 --> 00:11:34.480
I think this particular exercise is so impactful because when you see it in black and white, like these are my numbers, these are really this is everything that comes from my business.
00:11:34.639 --> 00:11:38.320
I put it into the formulas and it came out with this, and it's in black and white.
00:11:38.399 --> 00:11:39.600
This is what I have to charge.
00:11:39.759 --> 00:11:47.840
That actually builds your confidence to then deliver a more uh beneficial presentation where you can stick that offer because you know if you don't, you actually lose.
00:11:48.480 --> 00:11:55.600
So I just want to make sure that anyone listening, like this is a huge value that if you do it right, it'll actually help you even sell better too.
00:11:55.840 --> 00:11:56.320
Yeah.
00:11:56.639 --> 00:11:59.440
Yeah, we're gonna tie both those concepts in here.
00:11:59.840 --> 00:12:04.720
What typically happens as you're saying, Joe, is we realize what we need to charge.
00:12:05.039 --> 00:12:09.039
And what we realize is that that number is a lot higher than we have been charging.
00:12:10.000 --> 00:12:16.159
Based on gut feeling, I haven't done a formal measurement from our data, but we talked to a lot of electricians.
00:12:16.399 --> 00:12:20.000
I mean, just yesterday, I think Austin was on calls with seven.
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Uh, on average, about three to five electricians a day since we started, we've been talking to, not to mention the clients and the deeper relationships.
00:12:27.919 --> 00:12:32.320
And so we're talking about thousands of electricians, thousands of electricians.
00:12:32.480 --> 00:12:38.559
And the average rate that I would estimate from gut would be$120 an hour.
00:12:38.799 --> 00:12:40.639
That lines up that the electrician charges.
00:12:40.720 --> 00:12:41.440
You feel the same way?
00:12:41.600 --> 00:12:50.480
Yeah, no, I remember, and the reason why I say that is when I started off, I was$167, and we were the most expensive in our area by a lot at 167.
00:12:50.639 --> 00:13:03.200
And a lot of times what we hear from people who come in who are just starting off is, you know, I've heard as low as$75 an hour, you know, but usually around the$120 to$160 mark is right like the sweet spot of where people are like, yeah, I feel very comfortable at that rate.
00:13:03.360 --> 00:13:03.759
Yep.
00:13:04.080 --> 00:13:14.480
I've heard maybe as high as 170, 175 without someone having a formal training or coach behind the scenes that they've taken instruction from.
00:13:14.799 --> 00:13:19.600
Now, the second part of this, and we never want to throw shade or sand, whatever.
00:13:19.679 --> 00:13:30.799
It's not about the negativity, but you guys do need to realize most people that have had price training in the past also it comes with them saying, but it really didn't have the why behind it.
00:13:30.960 --> 00:13:33.679
We didn't understand why we were charging that much.
00:13:33.840 --> 00:13:37.600
And without the why, how are you gonna feel when you present a price to a customer?
00:13:37.840 --> 00:13:39.600
That's exactly what I was talking about originally.
00:13:39.679 --> 00:13:44.559
Like, because the customer is gonna give you the price objection and you have to justify why you're charging what you're doing.
00:13:44.639 --> 00:13:50.240
And if you haven't learned the articulations of how to navigate that, you're stuck saying, Well, this is what I got to charge.
00:13:50.399 --> 00:13:51.440
Well, why?
00:13:52.320 --> 00:13:55.759
And when your confidence goes down, the conversion goes down too.
00:13:55.919 --> 00:14:02.399
But if you know your number and you can present it with confidence, they're less likely to try to haggle you because you're like, no, this is what it is.
00:14:02.639 --> 00:14:04.480
So I agree with you 100%, Clay.
00:14:04.879 --> 00:14:15.200
So again, a bit of a self-plug here, but if you haven't got this exercise, and you can go below this and find the details to get that one, our SSR simple service rate calculator for 2026.
00:14:15.360 --> 00:14:17.840
Very fresh, very easy, templated for all your needs.
00:14:17.919 --> 00:14:20.000
It'll help you with the why.
00:14:20.399 --> 00:14:24.799
A big part of the why, though, Joe, that we got to get to is there's this slider.
00:14:26.000 --> 00:14:31.840
And that slider is actually in the projected volume of work that we're gonna do.
00:14:32.159 --> 00:14:38.080
And on one end of that slider, we should consider that 2,000 hours is a full-time year.
00:14:38.240 --> 00:14:39.039
Would you agree with that?
00:14:39.200 --> 00:14:39.679
I do, yeah.
00:14:39.759 --> 00:14:46.480
Because with uh really realistically, we're also gonna be offering out a 50% percentage as well for the efficiencies on it if you're doing service work.
00:14:46.799 --> 00:14:47.440
And that's the slider.
00:14:47.600 --> 00:14:48.720
That's the one I'm talking about, actually.
00:14:48.960 --> 00:14:49.360
Perfect.
00:14:49.679 --> 00:14:50.240
Yep.
00:14:50.559 --> 00:15:01.519
So if 2,000 is at the top end and zeros at the bottom end, meaning we're not gonna do any work or one hour of work, of course, then we'd have to charge half a million dollars to a million dollars for that hour.
00:15:01.679 --> 00:15:08.799
But if we move that slider right into the middle, we find the average service company choosing 50% to start.
00:15:09.200 --> 00:15:24.240
Meaning we're assuming that half of our service person's time is gonna be driving around, getting materials, getting organized, preparing for jobs, talking to customers, providing the premium level of service that we aim to provide.
00:15:24.559 --> 00:15:25.200
100% agree.
00:15:25.519 --> 00:15:26.159
Make sense so far?
00:15:26.320 --> 00:15:27.360
100% agree.
00:15:27.919 --> 00:15:28.799
Awesome.
00:15:29.039 --> 00:15:33.200
So at that 50%, what people don't realize though is that's our projection.
00:15:33.360 --> 00:15:36.879
That's how we look at it and go, we haven't really done this or tracked this before.
00:15:37.120 --> 00:15:40.639
So let's go with the flock here and say 50% sounds fair.
00:15:40.799 --> 00:15:41.600
Let's project that.
00:15:41.759 --> 00:15:46.159
So that means per service technician, I've got a thousand hours that were going to be billable.
00:15:46.559 --> 00:15:47.600
Checks out 100%.
00:15:48.320 --> 00:15:48.799
All right.
00:15:49.919 --> 00:16:01.120
If your bills were$300,000 for the year, just by this math,$300,000 divided by the thousand, we've got a rate of$300 an hour.
00:16:02.080 --> 00:16:04.879
For most people, that's just the burdens.
00:16:05.039 --> 00:16:14.080
I mean, if you think about it, like uh union contractor listening right now, you're probably paying your guys north of$100, uh$100,000 a year just to be an electrician, right?
00:16:14.240 --> 00:16:15.759
Without any special training.
00:16:15.919 --> 00:16:18.159
So the$300K can add up pretty quick.
00:16:18.320 --> 00:16:19.440
What about your salary?
00:16:19.519 --> 00:16:21.440
What about your business costs and overhead?
00:16:21.600 --> 00:16:32.159
So it's just important to recognize, I just wanted to put a pin in the ground for you guys and make sure we're all on the same page, that we're gonna be adding all these costs up and then we're gonna divide by the number of billable hours.
00:16:32.240 --> 00:16:36.559
And there's more on that in the exercise because we're gonna go deeper into now, okay?
00:16:36.639 --> 00:16:48.799
Let's say our revenue went up, but our profit is struggling, and now we're at the stage of pricing is right, revenue is up, but profit is lower than we want it to be.
00:16:49.519 --> 00:16:50.159
Follow me?
00:16:50.480 --> 00:16:51.279
Right there with you.
00:16:52.000 --> 00:16:54.799
There's just a few things we can do in this case.
00:16:54.960 --> 00:17:00.000
There's a few reasons why it may be, and commonly the biggest reason would be volume.
00:17:00.720 --> 00:17:04.319
Meaning, hey, we had service techs or a service tech.
00:17:05.039 --> 00:17:12.559
We had enough time to run three to four calls a day, five days a week, but we didn't always have the three to five calls a day.
00:17:12.880 --> 00:17:24.079
Or we didn't always sell enough or offer enough solutions that we could sufficiently fill the calendar to actually have a thousand hours direct billable.
00:17:24.319 --> 00:17:30.640
Now we get to take and move from our projections and actually look at the historical data through a period.
00:17:30.720 --> 00:17:34.720
That period could be a month, a quarter, a year is really good if you can.
00:17:34.880 --> 00:17:39.680
Look back and say, okay, we did a million, but we've got no profit, which is a common thing.
00:17:39.759 --> 00:17:41.839
It came up just the other day in a class, right?
00:17:41.920 --> 00:17:43.680
Uh, for for a new member in the app.
00:17:43.759 --> 00:17:46.160
So that's some of the things we get to go through in the app, guys.
00:17:46.240 --> 00:17:54.160
By the way, if you're not an SLE pro member yet, please go to service loopelectrical.com forward slash pro-dash app.com.
00:17:54.319 --> 00:17:55.440
I already said the dot com.
00:17:55.519 --> 00:17:57.119
Don't do it, don't dot com again.
00:17:57.440 --> 00:18:05.279
ServiceLoopelectrical.com forward slash pro dash app will get you there and you can get into the app and be part of those conversations as well.
00:18:05.440 --> 00:18:09.599
But the point is looking at it historically now, we know where we fell short.
00:18:10.000 --> 00:18:15.359
So I want to give you a couple numbers that you guys can run with as targets for your service company.
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