BUSINESS OWNER GUIDE

Electrical Business Pricing Strategy — How to Set Your Rates: Practical 2026 Guide — For UK Electrical Contractors

A practical 2026 pricing strategy guide for UK electrical contractors. Calculate your true hourly cost, set a fair-margin rate, decide between hourly / fixed / per-point, and defend your price against pressure. This guide is for electrical business owners setting their hourly rate, day rate and job pricing.

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12 min readUpdated 2026-05-18Andrew Moore, Founder of Elec-Mate

Written and reviewed by Andrew Moore, founder of Elec-Mate, against BS 7671:2018+A4:2026, IET Guidance Note 3 and the IET On-Site Guide.

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Key Takeaways

  • 1Your true hourly cost (including non-chargeable time) is typically 1.4-1.6x your chargeable hourly rate.
  • 2A £55/hour charge-out rate covers: scheme fees, insurance, vehicle, tools, training, holiday, sick, pension and 30% margin — IF you bill 30+ chargeable hours/week.
  • 3Fixed-price by job type protects your margin against scope creep on standard work (EICR, CU swap, EV charger).
  • 4Per-point pricing is industry-standard for rewires and large installs — typical UK rate £35-60 per point.
  • 5Day rate pricing only works for sub-contract work — direct-to-customer day rates always lose money.
  • 6Below-floor pricing is the single biggest reason electrical businesses fail.
01 · Business Owner Guide

Calculate Your True Hourly Cost

List every monthly cost: vehicle (£200-400 including fuel + insurance + depreciation), scheme fees (£40-50/month), insurance (£40-100/month), tools (£50-100/month average across the year), accountant (£50-150/month), training / CPD (£20-50/month), phone + internet (£30/month), pension (£200-400 ideally). Total typical: £700-1,300/month BEFORE you take any wages. Divide by chargeable hours (typically 30-35/week × 4 weeks = 120-140/month) to get your hourly floor.

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02 · Business Owner Guide

Setting Your Charge-Out Rate

A defensible 2026 charge-out rate for a UK self-employed electrician is £55-80/hour (excluding VAT). Below £55 you are subsidising the customer; above £80 you need either premium positioning (specialist work, exceptional reviews) or commercial / large-job pipeline. Most successful self-employed electricians charge £60-75/hour and bill 30-35 chargeable hours/week.

03 · Business Owner Guide

When to Fixed-Price vs Hourly

Fixed-price: standard work where you know the scope (EICR, CU swap, EV charger, rewire). Hourly: unknown scope (fault-finding, callouts, undefined remedial). Per-point: large jobs where complexity scales with outlet count (rewires, commercial fit-out). NEVER quote hourly for known-scope work — customers will haggle the hours; you absorb the variance.

04 · Business Owner Guide

Per-Point Pricing (Rewires)

A "point" is one outlet, switch, light fitting or accessory — anything you terminate. Industry standard UK rate 2026: £35-60 per point depending on region and complexity. A typical 3-bed rewire with 50-65 points = £1,750-3,900 labour + materials. Per-point quoting protects you from scope creep ("can you also add a socket here?") because every added point is priced.

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05 · Business Owner Guide

Day Rate — Sub-Contract Only

Day rate (£250-340/day for self-employed Approved Electrician) only works for sub-contract work where another contractor manages the customer relationship and absorbs scope risk. NEVER quote day rate to a homeowner — you absorb all the risk, the customer pays the cheapest day-rate, you lose money. Day rate sub-contract is fine as a way to fill quiet weeks; not as the basis of your business.

06 · Business Owner Guide

Defending Your Price

When customers haggle, the answer is not to discount. The answer is to explain what they’re paying for: scheme membership, insurance, calibrated test kit, certificate liability, BS 7671 compliance, warranty. "I’m the cheapest because…" is always a red flag for the customer — explain why your price is what it is, not why it should be lower. If they walk on price, they were never your customer.

07 · Business Owner Guide

Next Steps With Elec-Mate

Elec-Mate is built for UK electrical contractors — sole-traders through to multi-electrician firms. The Business AI tier gives you AI-powered quoting, certification, customer management, and team workflow. The Employer tier adds apprentice management, OJT tracking and JIB grading workflows.

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Five-Step Action Plan

A focused action plan based on the guide above.

1

Read the full guide above

Get familiar with every section before acting. Skim first, then read carefully — the details matter.

2

Identify your top priority

Most readers will have one specific area to act on first (registration, insurance, hiring, pricing). Pick one and focus there.

3

Take the first concrete step within 7 days

Inertia is the biggest barrier. Whether it’s phoning your accountant, getting an insurance quote, or applying to a scheme — do one concrete thing this week.

4

Track progress in Elec-Mate

Elec-Mate’s business dashboard lets you track scheme status, insurance renewal dates, apprentice progress, and quoting performance — all in one place.

5

Review in 90 days

Most business operations decisions need a 90-day review. Did the action work? Adjust and try the next thing.

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