I went to a "seminar" today given by Electrical Success International. That's all I really want to say about it unless anyone has heard of this and wants to give and opinion/feedback/thoughts, etc.
Same folks that provide another Electricians forum of sorts, I think, at: http://www.electricianboard.com/forum/default.asp. That forum used to be more active but has slowed over the last several months.
Radar
There are 10 types of people. Those who know binary, and those who don't.
ESI stands for Electricians Success International. Are these the people that tell you to charge an elderly person $500 to change out a 20 amp fuse on an emergency call? Financial success isn't always sucess on a moral level.
We have debated ESI and the "Flat-Rate" system here. Some guys believe in it, some curse it. Be warned...It can get as hot as some of the other volatile subjects.
How I understand Flat Rate is there is no way i can run around town for 65.00 per hour doing these small Jobs .
That rate is all I can get at the best of times. Theres just no way when a customer asks how much per hour and I say a min 100/hr .
My overhead costs per hour is over 150.00 per hour based on a 4 hour productive day doing service work.
If i can get 600.00 in 6 hours great then my overhead is covered for the day that includes my employee and paying my self for 30.00 per hour in that 4 hour period. So now if i work 6 hours per day i am making less than 30.00 per hr.
I need to learn how to convince customers that i need 100.00 per hour to cover that extensive overhead items list that ALine posted, I guess carrying it with me will help.
[This message has been edited by dougwells (edited 01-14-2006).]
How I understand Flat Rate is there is no way i can run around town for 65.00 per hour doing these small Jobs .
That rate is all I can get at the best of times. Theres just no way when a customer asks how much per hour and I say a min 100/hr .
My overhead costs per hour is over 150.00 per hour based on a 4 hour productive day doing service work.
If i can get 600.00 in 6 hours great then my overhead is covered for the day that includes my employee and paying my self for 30.00 per hour in that 4 hour period. So now if i work 6 hours per day i am making less than 30.00 per hr.
I need to learn how to convince customers that i need 100.00 per hour to cover that extensive overhead items list that ALine posted, I guess carrying it with me will help.
[This message has been edited by dougwells (edited 01-14-2006).]
doug it's simple. you don't quote an hourly rate.
if you know that you are losing money at $65/hr, yet continue to do it, because the customer won't pay more, go work for someone else. At least then you won't lose money.
Flat rate is not just pricing, it involves a change of corporate culture. But when done properly, you sell the job, not the hourly rate. By selling the job, the customer doesn't have to guess how long it will take or what the total price will be. You will tell them before you start.
You'd be surprised at how someone who claims $65/hr is extremely expensive, will ok $400 for a job that will take you 2 hrs.
It does work. It'll work better when more guys see it and get on board. We should all look to raise ourselves up, rather than look to pull everyone else down. (note:this last comment is not directed at you, it's a general statement regarding the state of our industry.)
