![]() He sees any valued-added services that reduce those costs as a real win-win-win for the project owner, his firm, and the distributor that’s providing the kitting services, technical expertise, vendor-managed inventory (VMI), or other value-added services. Going back to the labor argument, Misicka says that in many situations those “extras” equate to a savings of literally $1.50 per minute. “If one of our distributor-partners says, ‘Hey Gary, we can offer you this value-added service for a slight premium,’ and if the premium is still less than what it would cost us to do the work on our own,” he says, “we’ll definitely consider it.” “We have strategic alliances with several distributors that we work with on a regular basis, and we try to find ways where we can both be successful.”Īnd if that means that Lyons & Pinner has to pay a little more for the value-added services, Misicka says he’ll entertain the opportunity. “I always talk to our distributors about what kind of value-added services they can provide,” says Misicka, who also believes in creating true “partnerships” with those distributors, versus just shopping around to dozens of different companies in order to get the lowest possible prices. “Depending on the owner’s workers’ comp rates, electricians cost between $90 and $100 an hour here,” says Misicka, president at Lyons & Pinner Electric Companies in LaGrange, Ill., “so you’re talking about roughly $1.50 per minute for that type of labor.” Operating in that labor environment, Misicka often leans on his electrical distributors for value-added services-offerings that help reduce the project owner’s dependency on expensive electricians. A forced-union state, Illinois allows unions to negotiate contracts with companies that require union dues and/or fees to be paid (versus a right-to-work state, which forbids workers from being fired for non-payment of union dues or fees). Misicka factors in salary plus benefits plus workers’ compensation to come up with the per-minute cost of $1.50. When he breaks down the cost of labor in Illinois, Gary R. Here’s what electrical contractors think about those little “extras” that your distributorship provides on the job site.
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