Wired Home ProsFind a licensed installer near you

For installers

The real cost of "I already bought it"

When a customer gives you equipment they bought on an online marketplace, the risks of wrong specs, missing parts, uncertified gear and slow returns land on your schedule. This piece shows how to price that fairly without losing the job.

Add your company, free All installer resources
A tradesman with a tool bag at work

The call every installer knows

The customer has already bought the cameras, the smart switches or the EV charger, usually online and usually for less than you would charge. Now they want it installed, and they want the labor to be cheap too.

They aren't wrong that online prices are often lower. The problem is that the sticker price is only part of the cost of the job. The rest shows up on site, and the installer usually pays it.

Here are real examples of what can go wrong, and how to price for it honestly. They are individual accounts, not statistics.

What goes wrong on site

1. It's the wrong part for this house

Often the product isn't defective. It just doesn't suit the wiring, box, circuit or system it's going into.

  • Smart switches and no neutral. A San Diego electrical contractor calls a switch box with no neutral wire the top reason smart switches fail. It prices pulling a neutral at $325 to $675 per box. The other options are a switch made for no-neutral boxes, or smart bulbs.
  • Ratings that don't match the load. A homeowner asked about replacing a 30A double-pole pool pump switch with a Wi-Fi switch found on Amazon. An answer pointed out that the listing rated it for only 15 amps, which wouldn't survive switching the pump motor.
  • Firmware mismatches. An installer who sells only Reolink, with over 1,000 of its cameras deployed, found that new cameras he bought on Amazon would not work with clients' older NVRs. He suspected a firmware mismatch and asked Reolink to confirm.

A customer can't be expected to know about a neutral wire, a motor load rating or NVR firmware. Checking those things is part of what an installer does.

2. It isn't listed

On line-voltage and EV work, this is where installers draw the line, and they should.

  • A Canadian trade magazine reported that homeowners can spend “up to hundreds of dollars” on fixtures that don't meet the Canadian Electrical Code, which electricians then cannot install.
  • A contractor's EV inspection guide lists unbranded or cheap online charging hardware without UL or ETL marks as a common pitfall.

3. Something is missing or dead on arrival

  • A homeowner had a licensed electrician install a three-pack of Kasa switches bought on Amazon. One didn't work, so the electrician had to come back to work out why.
  • A homeowner found the screws and bulb missing from a ceiling fixture bought at a big-box store, partway through installation. The electrician charged $75 to come back. A commenter said the retailer wasn't going to pay that, and added that the homeowner could have checked the box first.
  • A 2001 electricians' forum thread describes a customer-supplied ceiling fan with parts missing, in a box that looked resealed at the store. Members discussed who should pay for the extra trip.
  • A contractor-business article notes that customer-supplied equipment often turns out on site to be incomplete or the wrong size, while the crew stands idle.

4. The return window and the whole-kit problem

  • A homeowner's Amazon landscape lights, sold as IP66 waterproof, had water pooling inside within a month. By the time the problem was clear, the return date had passed.
  • An integrator let a client buy his own Ubiquiti gear on Amazon. The router turned out to be defective just after Amazon's return window closed. The integrator said he will use it as a cautionary tale.
  • One security camera installer installs only equipment it supplies. One of its reasons is that most stores require a full return for a refund or exchange, even when only part of the equipment is faulty.

5. Nobody pays for the labor

This is the core issue. Refunds cover the product. They don't cover your time.

  • A UK homeowner paid an electrician £150 to fit six Amazon LED lights, then £30 per visit as they failed one by one. Amazon agreed to refund the lights but refused to cover the electrician's costs.
  • The CPSC's January 2025 final order on hazardous products sold through Fulfilled by Amazon requires a full refund once the buyer submits proof that the product was destroyed or thrown away. The order does not mention paying for removal of an installed device.
  • Manufacturer warranties can exclude labor. Crestron's warranty, for example, does not cover labor to diagnose, remove, replace, reinstall or program a product.

The margin math, said plainly

D-Tools data from nearly 1,000 integrators in the first nine months of 2023 shows residential integrators averaging about 45% margin on products and 57% on labor. Equipment margin is a meaningful part of how residential firms make money.

In a 2015 IPVM survey, more than 100 integrators gave their views on labor-only jobs. The common theme was that most make their profit on products and would charge much higher labor rates on labor-only work. Many were still worried about missing product warranties and disputes over whether the installation or the product was at fault.

One electrician building houses for a builder ran the numbers. When a buyer supplied $1,000 of material and he applied his usual markup to labor alone, he came out $250 below his normal gross profit.

None of this means customers are wrong to shop. It means a labor-only job has to be priced as a labor-only job.

How to price customer-supplied installs fairly

  1. Approve the model numbers before you schedule. An attorney quoted by ACCA recommends that contractors ask whether customer-supplied products are right for the job, fit the space and work properly. A five-minute review can prevent a wasted trip.
  2. Quote a separate labor-only rate. Some contractors price customer-owned items per install. One Thumbtack electrician lists $150 per surface-mounted light when the customer owns the fixture. Pick one approach and publish it.
  3. Charge a trip fee for returns caused by the equipment. The same Thumbtack pro lists a trip fee of up to $100 whether or not work is done. Say up front that a return trip caused by missing, wrong or dead equipment is billable.
  4. Bill diagnosis at your normal rate. The contractor-business article recommends this. It also stresses being able to explain your number.
  5. Warrant your workmanship, not their product. The same article suggests splitting it in writing: your workmanship is your responsibility, and the equipment is the customer's to take up with the supplier.
  6. Don't negotiate on safety. Don't install unlisted line-voltage devices, EV equipment, breakers or life-safety devices. That isn't a pricing decision.

(Not legal advice. Have your attorney and insurer review any written terms.)

When customer gear is fine

Be honest about this, because it builds trust:

  • It's listed and from a known brand. Look for a genuine UL, ETL or CSA mark.
  • It's sold by Amazon itself or an authorized seller. Cooper Lighting, for example, lists Amazon as an authorized reseller for items that ship from and are sold by Amazon, and warns that many marketplace sellers are not authorized.
  • You already know the product and have checked it against the site.
  • The customer has opened and checked it before you arrive.

Labor-only installs can go well. One customer praised an installer who made the cameras the customer had bought work and set them up well.

Use this with customers

  • “Happy to install what you've got. Send me the model numbers first. If it's listed and suits your wiring, we're good to go.”
  • “On equipment you supply, I warrant my workmanship. The product warranty is between you and the seller. If I have to come back because a part is missing or dead, that's a separate trip charge. I'd rather tell you now than surprise you later.”
  • “If you'd like one number and one person to call when something fails, I can supply it. That's what the difference in price covers.”
  • “This one doesn't have a safety listing, so I can't install it. It's nothing personal. I'm the one signing off on it.”

Evidence

Fine print: this article is general information for installers, not legal advice. Have your attorney and insurer review any terms you use. The examples are individual accounts, not statistics. Sources are linked in the Evidence list above.

Last reviewed .

Find an installer