All,

I have been getting lots of great stuff from the ECN forum so I though I would ask a slightly new question:

What are some ways to handle “small extras” the homeowner asks for mid way through a job?

A common problem we have is that about half way through the job, the homeowner starts thinking of extra things they would like us to do while we are there such as an extra outside light, or a few more plugs in the family room. We are always torn between doing them at no charge to build good will for referrals and so we don’t create tension between ourselves and the homeowner, and between making sure we get paid for our time.

Any thoughts?

VinceR

A small extra or goodwill is helping move a couch. Anything electrical is $$. As soon as they ask you need to tell them the price to do it. If someone is asking you to do the work they are willing to pay a price. If not do you really want there business. Anyone they refer you to is going to try the same thing. I shy away from conflict but being paid for my time shouldn't create tension. They aren't about to come over to your house and work for free are they?

Vince, remember your an electrian. Thats where you make your paycheck. Now if a friend needs a hand to re-roof his house, paint a room, fix his truck, etc. I'm there for him. Because I'm not a roofer, painter, or auto mechanic. So there fore I'll lend a hand. But when I have my meter in hand I expect to be paid for my skill and knowledge that I have worked to achive. Don't sell yourself short, it's your skill and knowhow that they hired you fro in the first place.

If you have a good customer, one that give you repeat business, you could do the samll extras for free if you want and then send the customer a no cost change order for the work showing the cost then a credit.

This way they now know what was done and how much it would have cost if you charged them. This works when you know there will be a larger change later. They don't nickel and dime you as much.

One time customers should pay for everything. No freebies.

When any of my customer's try to put me in this spot where they want free extra's and try to put a guilt trip on me since they were so very very generous in hiring me, I just tell them " hey this might work out because my lawn needs mowing and I have a large patch of overgrown howlie koa trees (trust me you don't want any of these bushes in your yard ) ,behind the house that needs removing

All,

Thanks for the replies. Message received low and clear: The Iron clad policy is that unless they want to mow my grass & repaint my house, no freebies.

The question now becomes, how to pull it off. What seems to work best for me is to respond to the customer’s request for an extra by saying something like: “That is a great idea and since I am here, I can do it for only $$$ more.” Where “only $$$ more” works out to be the hourly rate that covers my costs and profit.

Does anyone have a better approach?

Does anyone know of any books or charm schools that will help me interact with my customers in a positive way so they understand that I am a professional and want to help them, but that I do this for a fee.

Again thanks

VinceR

In contracting you should provide a Change Order. Don't do the work until you have the autograph or you'll be negotiating to get paid for it at the end.

Dave

Also on the change proposal should be a deadline for approval.

Something added during the rough is much less expensive for the customer than adding after the finish.

Three most expensive words in contracting "While you're here"
It's funny how people feel that they "Own" you when you walk through that door. I get this all the time and unless I have alot of spare time figured into the job it is usually give them a price and call to schedule it as soon as possible. They don't usually like this because they figure since you are there anyway....But what they don't realize is that you are there to do a job already speced out and that is how much time you scheduled for them. Usuually I tell them I didn't bump you to do extra work for other people and I can't do it to the next guy. All that said. No Freebies!

I'll not the first to say it but I'll say it anyway: Change order.

A simple form that gets filled out and signed, becomes part of the contract. Then nobody has to remember how much you said you'd charge for something and you get paid.

And give a price when asked for a change, don't say "Sure I can do that" because you think you're doing it for hire and they think you're doing it for free since you're here anyway.

If you're doing jobs that have progress payments, change orders get paid with the next progress payment, not at the end. If a change is big enough, it gets it's own payment when the "change" is complete.

When dealing with customers, smile, be kind, make friends, provide great service, but don't forget that the only reason you're there is to make money.

Thanks for the form, LK.

I just received the annual "Houses" issue of "Fine Homebuilding." There is an excellent article there on the subject of change orders.

Les,

Thanks for the change order form. I love the $$$$ signs all over the place. That makes it very clear that they will be paying for our services.

Pat

LK, I saw your change order form that you use. In residential work, a quick descreiption would be sufficient. When I do an "enginered" job, I only do change orders with approved drawings to document the change. It will be either a full size drawing or a simple 8 1/2 x 11". But one way or another there is always a paper trail. Remember, "If it aint in writing, it never happened"! Work Safe.

[This message has been edited by rcksmith127 (edited 05-04-2005).]

rck,

That is all we do on resi change orders, we put in a short description of the work, and just the total amount, the form lets the customer know, there are other costs involved in doing changes.

Sometimes I'll give the client an extra without charging, but I bring attention to it on the invoice. Giving more than expected can work out good with repeat business and referrals.

Dave

Tiger,

Quote:
"Giving more than expected can work out good with repeat business and referrals."

That is all fine, giving more than expected, as long as you charged for that more then expected, in the inital contract.

I usually work by the hour, so added stuff is added hours. No need for a change order.

Everyone: I agree with the comments re change orders. From now on I will respond to requests for extras by say “That is a great idea, let me write up a change order so you can see how much it will cost and authorize the work.”

Electricmanscott,

Thanks for your post. You are right on with your comment that they don't realize that you only have so much time to complete their job. Based on your comment, when I will tell them that if they authorize the work, the soonest I can do it is X days from now because I am booked up with other customers until them. (This has the added benefit of sending the message that I do quality work and am in high demand.)

I guess it all comes down to knowing that you have to get paid and having the TOOLS to tell the customer in a positive professional way that you need to be paid.

This brings me back to my question about charm school. Does anyone know of any books or other resources so I can sharpen my skills so I present myself as positive, business like and firm when it come to informing the customers about my fees?

Thanks again,

VinceR

Oh boy, here I go, stepping in it again....
Suffice to say that some of the best business advice I've ever had has come from unusual places, some of which are legal only in Nevada!

One lafy, who charged considerable more than ie "average" in her trade, explained it to me this way: "You're worth it. Of course you are. And the customer, even if they are not able to afford you today, must be treated with true respect, the assurance that their request is perfectly reasonable, and some day, they will be able to have the best. So state your rate with confidence." She went on to explain some of the "little" things used that helped set her apart from the 'discount' competitors. Things like service, uniforms, a clean, comfortable workplace, and a willingness to custom-tailor her services to the customers' needs.

Good advice for any business, I'd say.

renosteinke, that explains the charge for the "little" extras, but how much do the bigger ones cost?

(sorry guys, I couldn't pass that one up)

FRANK

Dosen't matter how much it is I'll bet she gets cash up front. Also not bad advise for any business.

Vince,
Your "charm" school question is a good one. I would encourage you to check out Charlie Greer aka TechDaddy. His training is unbelievable. He covers everything from preparing yourself professionally to handeling anything that comes up with a customer. You will be amazed at how much he teaches you. How to use a flat rate book, how to sell service agreements on every call, and overcoming price objections are just a few of the topics covered. www.charliegreer.com. If you need other testimonials, I know a lot of other contractors who use his dvds for training. It is truly unbelievable how awesome the set is.

Another HVAC business system? Aren't there any Electrical Contractor business sites??? I'm tired of reading about the wonders of HVAC maintenance agreements!!!

Sorry for the rant.

Dave