We charge an initial service call rate that covers travel and incidentals. This covers the first hour on-site. We charge per quarter-hour for additional time spent there.
If we are required to return for any reason that was associated with the first visit, we just continue it as if we never left. We just charge quarter-hour increments for the return visit.
I KNOW that we are losing money by doing things this way since the bulk of the cost is getting to the customer's site. We just look at it as an incentive to get it done right the first time. When all else fails, the customer appreciates the savings while still appreciating the fact that we need to be paid something for our time. We hope that when they really need something done where we can charge full rates, they will call again. So far, it seems to be working.
Fine print on the invoice explaining that repair attempts are a good-faith effort to save the customer from expensive replacements seems to give us some firm footing.
Quote: "We charge per quarter-hour for additional time spent there."
That method of charging is ok if your a service provider for someone that is providing you with recurring revenue, such as a phone company or utility, that earns their income, on the basic services, and then provides service calls at the reduced rate to retain customer accounts, something you can't afford to do in the electrical service market.
Quote: "I KNOW that we are losing money by doing things this way since the bulk of the cost is getting to the customer's site."
If I know there is a loss, I make sure the same procedure is not repeated.
Quote: "We hope that when they really need something done where we can charge full rates, they will call again."
(Hope) it's not the 5 to 8 years, for residential repeat calls.
