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).]
