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Joined: Feb 2006
Posts: 138
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Member
I've gone to a flat rate system a couple of months ago and charge $40.00 service call plus a $65 troubleshooting fee. Once the problem is found, the employees either look up the fix in the book or make a call to the office for a price.

We've only had one case where the problem could not be found in an hour. A homeowner had changed out a switch with a motion sensor and miswired the power such that walking by it would turn on several receptacles on the other side of the house, and then they'd time out and go off.

Anyhow, $65 is a little light for my employees and I'm thinking about some kind of graduated scale but not too sure about how to set it up.

Flat rate is the only way to go.

Latest Estimating Cost Guides & Software:
Joined: Jan 2003
Posts: 1,429
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"Now, Mrs. Jones knows what the job will cost and is expected to pay me when I am done. vs.

"Mrs. Jones, we are all done. It took a little longer that we had hoped, but here is the bill - 3 hrs labor x $70, etc, etc."

Mrs. Jones response "it shouldn't have take 3 hrs to change that ceiling fan. It should only have take 1.5 hrs. That bill is too high, i'm not paying for 3 hrs. I'll pay you for 1.5 hrs, etc)
"
That is the main reason we do contract, to avoid the hourly fear factor.

Joined: Dec 2004
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I thought we were talking about trouble shooting, not installing cieling fans.

Joined: Jun 2006
Posts: 34
CDS Offline
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I have recently switched to flatrate . I found an inexpensive spreadsheet for pricing that I have been well pleased with . The big advantage for me is consistency . I,m a one-man op , mostly residential . I have been concerned in the past that in subdivisions people compare prices . If you charge one person 200 for what they percieve as the same work you charged someone else 150 , then they may feel cheated . I think for my business flat rate is going to work well . For troubleshooting , I have a base charge . On the phone I tell customer this normally covers diagnosis , If more troubleshooting is required I can let them know once I am there . That being said it is very rare for tshoot on residence to take more than an hour .

Joined: Nov 2005
Posts: 507
M
Member
If you are going to simply provide service to existing customers as a convenience for them, then go T&M. If you want to focus on service work and make a profit at it, go flat rate.


Once you give your hourly rate to a residential customer, you set yourself up for grief. They compare your hourly rate to their hourly pay. They think that you keep all that money (no salaries, taxes, overhead, etc) and the worst is that they have anxiety and will watch the clock every second until you are done.


Again, T&M will work in some commercial applications and primarily with a sole proprietor. Add employees and residential T&M is a losing proposition.

Doesn't matter if it's troubleshoot or small installs.




[This message has been edited by mahlere (edited 09-06-2006).]

Joined: May 2003
Posts: 74
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Care to disclose what your flat rates are? I have been considering using that format but am still doint T&M at 60/hr, 3 hour minimum

Joined: Apr 2006
Posts: 83
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If anyone would like a copy of an hourly rate calculator in excel format, send me an email.

Joined: Sep 2006
Posts: 23
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Member
Hey guys. I have a way that works great for me, tell me what ya think. Better terminology input would be helpful if given.

I have whats called diagnostic fees (usually under $100) This includes show-up gas and a plug tester (not meter) and visual inspection of breakers to see if they are in trip mode. This covers nothing else.

Then I have what I call pre-troubleshooting tasks that range from $185-$333.15. This option tests both ends of the circuit with meter and total visual inspection of circuit. This visual inspection only counts for accessable locations, this means no opening of anything other than beginning or end of circuit (sometimes I use the plug that was used at the time as "the end"). Attics are only visually checked from hatch and same with crawlspaces.This sometimes just tells me what I am getting into. And alot of the times finds the problem.This and all other troubleshooting does not fix problem and the customer is told this prior to the signing of pre-troubleshooting tasks.

Finally there is Major Troubleshooting which involves finding the problem no matter what it takes. and since I now know the circuit so well I can give a good up front price to Mrs. Jones which usually ranges from $680- $1484. Sounds like alot of stuff to go through but I make a good amount of money this way and the break down makes for no arguments with customers.

Oh and I almost forgot when going from one task to another the previous task amount is waived (they dont pay for pre task and major)they only pay one fee and diagnostic is waived depending on location and time of call.

[This message has been edited by electrictim510 (edited 10-27-2006).]

Joined: Feb 2006
Posts: 138
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electrictim510, your customers must be in Hollywood...

Joined: Jan 2003
Posts: 4,391
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Moderator
This business forum always amazes me. [Linked Image]

Each person is so certain that there way is the only way, the right way, the way to fame and fortune.

Anyone doing it another way is heading toward bankruptcy.

Can't even agree that there is more than one successful business plan. [Linked Image]


Bob Badger
Construction & Maintenance Electrician
Massachusetts
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