How I understand Flat Rate is there is no way i can run around town for 65.00 per hour doing these small Jobs .
That rate is all I can get at the best of times. Theres just no way when a customer asks how much per hour and I say a min 100/hr .
My overhead costs per hour is over 150.00 per hour based on a 4 hour productive day doing service work.
If i can get 600.00 in 6 hours great then my overhead is covered for the day that includes my employee and paying my self for 30.00 per hour in that 4 hour period. So now if i work 6 hours per day i am making less than 30.00 per hr.
I need to learn how to convince customers that i need 100.00 per hour to cover that extensive overhead items list that ALine posted, I guess carrying it with me will help.
[This message has been edited by dougwells (edited 01-14-2006).]
doug it's simple. you don't quote an hourly rate.
if you know that you are losing money at $65/hr, yet continue to do it, because the customer won't pay more, go work for someone else. At least then you won't lose money.
Flat rate is not just pricing, it involves a change of corporate culture. But when done properly, you sell the job, not the hourly rate. By selling the job, the customer doesn't have to guess how long it will take or what the total price will be. You will tell them before you start.
You'd be surprised at how someone who claims $65/hr is extremely expensive, will ok $400 for a job that will take you 2 hrs.
It does work. It'll work better when more guys see it and get on board. We should all look to raise ourselves up, rather than look to pull everyone else down. (note:this last comment is not directed at you, it's a general statement regarding the state of our industry.)