I agree with A-line's post. I've been working on my flat-rate price book for several months now and have learned quite a few things in the process.
I started off with a framework that I found online for one of the flat-rate systems that you can purchase. They showed the main pages that only had the general categories, so I printed those and used them as a start. I then set up a spreadsheet in Excel using these categories (which I have now modified to better fit my needs). I have columns for account codes; description; general information (such as color, what's included in the price, etc.); my cost (including tax); sales price; estimated labor time (in tenths of an hour - estimating books can help here); labor rate ($100/hr); and total installed cost. Excel is pretty easy once you get the hang of it, and you can set these columns up with formulas so that when you enter your price it will automatically calculate your markup. (I charge a 40% markup - I divide my price WITH TAX by .6) So, by looking at my book, I can see that a 20A GFCI breaker costs me $14.26 with tax; my sales price is $23.77; it takes approximately .4 hours (24 minutes) to install in a box that already contains wires and a receptacle; and that I should charge $63.77 per receptacle installed.
Like you, however, I realized pretty quick that I couldn't just charge $63.77 for a call to change one receptacle and make any money. So, I also charge a $65.00 trip charge for going out to the house. Sometimes I call it a troubleshooting fee, depending on the circumstances. However, it really doesn't matter what you call it, as long as you get it!
The other thing that I realized is that rarely ever does two jobs work exactly the same. So, I don't have too many "assembly" prices listed in my book - mainly just individual prices. For example, I know that 99% of the time that I cut in an old work box I'll also be installing a standard switch or receptacle with a cover, so I have an "assembly" price listed that includes all of them. The main reason for doing this is that it helps me to get prices together more quickly. But on things like junction boxes, I never know ahead of time how many NM clamps that I'll need - or what size. So, my book lists the price of each individual clamp installed. I also charge a flat $5 on each job to cover such things as wirenuts, caulk, tape, etc. - unless the job is unusually large.
Wire is listed only by sales price per foot (w/40% markup), as some wire pulls are much easier than others. After I look at the job, I figure approximately how long it will take me to pull the wire, add 20% for those unforeseen problems that always arise, and multiply that by my $100 hourly rate to get a labor price for wire installation.
So, when I get to a customer's house, I go in to evaluate the problem and decide what I need to do to fix it. Then, I go back to the truck and quickly make a list of what materials I need and use the price book to get my price. I then write it up on a service agreement that the customer will sign before I actually start the work. For example, it might list:
Qty. 2
Description: 7102 20A GFCI Replacements
Total: $127.54
Qty. 2
Description: 1301 1G Old Work - 20ci
Total: $33.24
And so forth. (I also set my Quickbooks Pro up with these account codes. It makes inputing the sales receipts into the computer a breeze.) I also have an area on the form where I write a description of the work to be done, and an area for express disclaimers or exclusions - such as drywall repair or anything else that I want to make sure that I don't end up liable for.
I sign it, and the customer signs it before the work is started. Then, when the work is complete, the customer signs again stating that the work was completed to their satisfaction and I give them a copy for their receipt. I have always gotten paid using this system, as most people won't try to get out of it after they have signed on the dotted line.
Overall, the flat-rate system has really helped me out a lot. Up-front pricing has really impressed my customers and eased their fears as to what the cost is going to be. I've actually had several who were pleasantly "shocked" that I would actually tell them up front how much I was going to charge them - they had never heard of tradesmen doing this before.
It's also helped me to make a fair profit by keeping me from underestimating the cost of a job - which I'm pretty prone to doing. I tend to be too soft-hearted, but the book helps me to stick to my guns. And, so far, I have found it to be fairly accurate when I double-check the numbers after a job.
The worst part of the whole thing is inputing all of the data. Everytime you purchase new materials you have to input the new accounting code, description, price, etc. And everytime you re-purchase materials you have to check to make sure your prices are still current. But, I think that it really pays off in the end.
Sorry for such a long post - I just wanted to share some of what I have learned to maybe save you from re-inventing the wheel!
Kevin
