Bob,
you should look harder. I've conceded that point numerous times, even you dnk.
Here is a question for you:
A few parameters- primarily residential market, customer wants to know a price up front (How much is it going to cost?) and 20 technicians in 20 trucks, each performing an average of 3 calls per day, with a job average of $450. Small "service" work.
Is it economically feasible to have estimators go to each job and price it up, then have installers come by later and perform the work? Or to have the 20 techs calling the estimator from the field and try to explain the problem over the phone and get a price?
Or does it make more sense to arm each technician with a manual that will guide them to pricing each job correctly, on the spot, and perform the work? Thus, saving the customer money, due to only having to make one trip. Saving time and increasing profit for the company.
Remember, this is primarily residential, small projects/service work, not owner operated.
But, let's make a few things clear.
Flat rate is not
my system
start your research here:
this guy is basically the one who started it.
www.nspgweb.com www.flatratepricing.com here are a few more who have perfected the system
www.maiosuccesssystems.com www.upfrontprice.com here are a couple of groups who use the flat rate system everyday with success
www.nexstarnetwork.com www.youresi.com www.plumberssuccess.com www.mrelectric.com www.mrrooter.com www.benfranklinplumbing.com www.mikediamondservices.com Here are some people who have written about this topic and are much better versed than I am
Ellen Rohr -
www.barebonesbiz.com Al Levi -
www.appleseedbusiness.com Charlie Greer -
www.hvacprofitboosters.com Here are a couple of your fellow contractors who were smart enough to do something other than argue with people on message boards
www.catalystservicemarketing.com www.ccesllc.com My point is, your notion of flat rate and the industries definition of flat rate are not the same. If you want to tell guys who use a flat rate system that they are not doing what they are doing (huh? read it again, it actually describes what is happening in this thread) that is up to you.
Your company, which is quite impressive, doesn't appear to touch single family residential service. So please, accept that LK knows what he's talking about. Accept that PE Masters and Tiger (guys who do residiential and light commercial service all day everyday) know what they are talking about.
None of them, myself included, are telling you that they way your company runs it's business is wrong. It's a different animal than what they run. Hell, I've even told dnk that we do some T&M work for our commercial customers. I've also told him on numerous occasions, that I personally have never come across a situation where, if actually understood and used properly, flat rate could not be used.
Bob, as I said earlier, take a look at my posts from anywhere. You'll notice that I don't stick my nose into too many places. When I do, I can usually back up any opinions I may have. And lastly, I am not one to cater or cowtow.
Take as you like, do as you wish. I wish you and your company the best of luck.
And dnk, since you are fond of quotes, here is one for you:
"It is better to keep your mouth closed and let people think you are a fool than to open it and remove all doubt." - Mark Twain
I have avoided responding to you and I have kindly asked you to avoid me. This discussion was between bob and I.
[This message has been edited by mahlere (edited 09-25-2006).]
