How to Charge an Electrical Apprentice
To charge for an apprentice electrician, also known as a journeyman electrician, you need to determine the billing rate. The billing rate includes the costs of employing the apprentice electrician plus a mark-up factor to provide a profit margin for the employing organization. The total of the employment costs plus the mark-up provides the foundation upon which to charge customers for the services of a journeyman electrician.
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Things You'll Need
- Salary information on the specific apprentice
- Calculator
- Access to an invoicing/billing system
- Customers
Instructions
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1
Identify the journeyman electrician's salary. Apprentice electricians go through regular salary increases as they gain experience. Salaries may also vary depending on type of employer and geographical area.
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2
Identify the hourly rate. For example, if you need to charge for a first-period apprentice electrician at an annual salary of $36,450, and such an apprentice electrician has a standard 40-hour work week, then the apprentice electrician has a $17.53 hourly rate or the annual salary divided by 52 weeks and then 40 hours.
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Identify the cash value of any benefits such as vacation time, paid holidays, company paid health insurance and so on. For example, benefits packages can have approximately a third of the value of the overall salary. So if the benefits package is valued at one-third of the salary, then the hourly rate baseline for the benefits package of a $17.53 hourly rate is $5.85.
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Add the hourly rate for the benefits package to the salary rate. An apprentice electrician with a $17.53 hourly rate for work and a $5.85 hour rate for benefits, for example, has a total compensation package hourly rate cost of $23.38.
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Determine the appropriate profit factor you need to make, taking into consideration what the local area will bear in terms of paying for electrician services.
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Calculate the mark-up rate as a percentage of the hourly base rate for the total compensation package. For example, if you arrived at a 7 percent markup rate, the markup rate on the $23.38 consolidated hourly base rate equals $1.64.
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Add the mark-up rate to the consolidated hourly rate, which in this instance works out to $25.02. This gives you the hourly bill-out rate for the apprentice electrician. That is the rate you can charge to customers for the journeyman electrician's services when the journeyman electrician at these rates accompanies a fully-qualified electrician.
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As the apprentice electrician advances in skill and experience, and his or her salary level increases, the change in salary level will make a recalculation of the bill-out rate necessary at each regular increase.
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