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#154934 - 12/01/04 06:13 PM Flat Rate Pricing vs. T&M
Electric Eagle Offline
Member
Registered: 04/20/02
Posts: 914
Loc: Alpharetta, GA
In another post A-line brought up flat rate pricing and I thought it deserved a thread of it's own. 95% of our work is flat rate or firm quoted. We don't do time and material. We used to use T&M on jobs that we knew had too many variable (problems) to give a firm quote. Now we turn these jobs down unless it's one of our best customers. We find that people will gladly pay your price as long as they know upfront. Currently we use our own price book, but we're looking into software that integrates flat rate pricing, scheduling, inventory, etc., in otherwords a system.

What do the rest of you think about flat rate vs. T&M.
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#154935 - 12/01/04 06:30 PM Re: Flat Rate Pricing vs. T&M
GA76JW Offline
Member
Registered: 03/20/04
Posts: 193
Loc: Suwanee, GA USA
I find flat rate to be a better sell than T&M also.

As you said, people like to know cost up front.

It also benefits the Electrician too, cause justifying markups and etc. get tiring.
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"If common sense was common, everyone would have it"-not sure, someone here

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#154936 - 12/02/04 04:40 AM Re: Flat Rate Pricing vs. T&M
kinetic Offline
Member
Registered: 04/06/02
Posts: 156
Loc: Phoenix, Arizona
I have been switching back and forth between the two for the last year. Moving more into the service field versus working with GC's. With T&M I am finding it much harder to sell a job but your costs are covered no matter what. Even people with large wallets get bug eyed when you start talking dollars per man hour. With flat rate the customer knows what they are getting for what price and there isn't any sticker shock after the job is done. I lean toward flat rate and and would like to know if you do find some software that you could reccommend.
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#154937 - 12/02/04 07:25 AM Re: Flat Rate Pricing vs. T&M
A-Line Offline
Member
Registered: 07/23/04
Posts: 272
Loc: Utah, USA
I use Flat Rate Plus it can be purchased at www.flatratesystems.com Another system I hear is very good is called Successware 21 www.successware21.com I found when I was doing T&M the customer still wanted a set price before I started the work so I would end up giving them one. So I was pretty much doing flat rate pricing anyway. Now I have a printed book with prices in it that I show the customer. It's titled Technicians National Electrical Pricing Guide. This makes it easier to sell the customer on the price. Since it's coming from a book they don't think you are just making it up based on how rich you think they are.

[This message has been edited by A-Line (edited 12-02-2004).]

[This message has been edited by A-Line (edited 12-02-2004).]

[This message has been edited by A-Line (edited 12-02-2004).]
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#154938 - 12/02/04 09:52 AM Re: Flat Rate Pricing vs. T&M
dougwells Offline


Member
Registered: 05/03/03
Posts: 1137
Loc: kamloops BC Canada
A-Line Thank you for the links. Would this software work for Canada also?
I found this link that answered some question if some are unsure about flat rates. http://www.contractingbusiness.com/news/article.cfm/newsarticleid/923
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#154939 - 12/02/04 04:18 PM Re: Flat Rate Pricing vs. T&M
sparkync Offline
Member
Registered: 10/17/02
Posts: 812
Loc: NC
I am in the process of doing a job T&M, but with no quoted price for either. It is such a job that it would have near impossible to give a reasonable bid. There were 2 attics if different portions of the building, with one extremely long, and the "access door" on the opposite end of where most of the work was to be performed. If I would have given a flat price on it, I'm pretty sure now, that I would have lost very badly. The customer is good enough and trust me and my work enough, that they didn't require a price. I cut my hourly rate considerably because of that trust.. Steve...
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#154940 - 12/03/04 03:09 PM Re: Flat Rate Pricing vs. T&M
Dave55 Offline
Member
Registered: 05/08/04
Posts: 697
Loc: Crystal Lake, Illinois, USA
I'm really curious about this one. I installed a GE SpaceSaver microwave oven above the range in a 30 year old house today. The panel was in the basement directly below, and a couple feet to the side (15' AC max. from microwave to breaker). The panel was a Square D QO.

What does the book say I should have charged by flat-rate???

Dave
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#154941 - 12/03/04 04:12 PM Re: Flat Rate Pricing vs. T&M
slumlordworker Offline
Member
Registered: 12/20/03
Posts: 84
Loc: south bend indiana
dave55

our book says you should of billed

19.00 for the trip
xx.xx for permita if needed
125.00 for the actual job


144.00 plus permits if needed

by the way how long did it take you
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#154942 - 12/03/04 07:22 PM Re: Flat Rate Pricing vs. T&M
slumlordworker Offline
Member
Registered: 12/20/03
Posts: 84
Loc: south bend indiana
with 2.8 hours of total time we would of been happy with what we charged
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#154943 - 12/03/04 07:27 PM Re: Flat Rate Pricing vs. T&M
Electric Eagle Offline
Member
Registered: 04/20/02
Posts: 914
Loc: Alpharetta, GA
We did a microwave in a similar situation the other day, but with Romex and a crawl space. We charged $350 including installing the microwave (non vented). It took 2 men 2 hours + travel.
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