That sure is a lot of posts - including my own - just to make the point that not everyone agrees on the definition of "flat rate." [Linked Image] In my personal opinion, I don't much care what you call it or how you do it as long as your making money. As others have pointed out, the business model for an industrial electrical company will not be the same as the business model for a residential service company. You have to adapt to your particular specialty, as well as your particular market area. As such, what one specialty contractor in one area calls "flat rate" will most likely differ from what another specialty contractor in another area calls "flat rate." All any of us can do is to explain how we use this particular term ourselves, rather than to try and project our opinion onto others.

For ME, T&M means "exact cost." Flat rate means "highly educated guestimate." Contract price means "any price I want it to be for any reason (even drawing a price out of a hat if I want.)"

For ME, these three terms could be further categorized at "T&M" and "Up-front pricing," as both the flat-rate and the contract pricing methods both give the customer the total price up front.

But again, that's just me. To each his own.

:-)

Kevin

P.S. In regard to itemized invoices...in my line of work it is rare that I would list over 7-8 items. Most invoices are 3-4.

Example: 1030 Fixture Change $65.00
1045 Incandescent 60W Bulbs $8.00
7500 Misc. Parts $5.00

If I'm building out a service or doing other work that will require a large list of materials and tasks, I then give what I call a "contract price."

Example: Install new 200-A aerial service with 200-A disconnect switch. $1700.00

Kevin