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#64473 - 04/08/06 02:27 AM Charging customer - T&M  
aldav53  Offline
Member
Joined: Aug 2001
Posts: 545
Chandler, AZ USA
Doing a T&M job and charging $50 an hour for me (licensed) and less for my helper. But the job I've been doing at a church is ongoing. Wondering if I should charge less because of the volume of work I'm getting. They just keep adding more which is great, but figure I feel like I should charge less, like $45 because of the amount of work.. give them a volume break. any opinions? I want to be fair.


The Golden Rule - "The man with the gold makes the rule"

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#64474 - 04/08/06 06:18 AM Re: Charging customer - T&M  
watthead  Offline
Member
Joined: Oct 2001
Posts: 172
South Carolina
Why would you change the rules in their favor half way through the game? I doubt they will consider paying you more than what you invoice them, and you shouldn't charge them less than original rate.


#64475 - 04/08/06 06:57 AM Re: Charging customer - T&M  
Redsy  Offline
Member
Joined: Mar 2001
Posts: 2,056
Bucks County PA
I agree with watthead. I also would be tempted to lower the price to stay in their good favor, but there is no guarantee they will call back either way. If they are paying your rate, keep it. Next week you might not be so lucky.


#64476 - 04/08/06 08:30 AM Re: Charging customer - T&M  
Tiger  Offline
Member
Joined: May 2005
Posts: 706
Crystal Lake, IL USA
I'd suggest basing it on your profit margin. If you're making 20% profit, you could consider cutting it in half. If you're only making 10% profit, you're doing it at cost (any unexpected expenses & you're working at a loss).

On the other hand, if you don't know your profit margin & you're losing $5.00/hour, then you'll be losing $10/hour with the added discount.

Dave


#64477 - 04/08/06 10:53 AM Re: Charging customer - T&M  
aldav53  Offline
Member
Joined: Aug 2001
Posts: 545
Chandler, AZ USA
Its just that they have given me so much work in the past I feel like I should give them a break. But then again, your all probably right... maybe I should raise my rate. :-)


The Golden Rule - "The man with the gold makes the rule"

#64478 - 04/08/06 11:06 AM Re: Charging customer - T&M  
mahlere  Offline
Member
Joined: Nov 2005
Posts: 507
New Jersey
Personally, for chandler I think your rate is low. But since it's a church and you want to have a good relationship, what about advertising/promoting to their congregation? Having the church mention the work you did for them in their weekly newsletter? Trade for publicity. That could be a win/win.


#64479 - 04/08/06 03:58 PM Re: Charging customer - T&M  
renosteinke  Offline
Cat Servant
Member
Joined: Jan 2005
Posts: 5,316
Blue Collar Country
A real important point to raise: Have you been paid anything yet?

If a guy gives me regular business, and pays promptly, then I consider sharpening my pencil, or doing some courtesy things.

If the guy loves you that much, maybe you're not charging enough. Time to think things through.

Finally...if the job is one of those endless, continuing things, and payments have been spotty.....maybe the guy is "gaming" you. The old "give me a break today, and there's lots more down the road" sort of hustle.
I would reccomend telling him you have other committments, and would prefer to finish one job- including getting paid the agreed amount in full- before starting the next one. If he's running a scam, he'll wail like a cat caught by a rocking chair, might even imply threats about your 'poor attitude.'


#64480 - 04/08/06 05:38 PM Re: Charging customer - T&M  
aldav53  Offline
Member
Joined: Aug 2001
Posts: 545
Chandler, AZ USA
renosteinke,
No, none of that, they pay promply and don't say anything about my charges and have been great to work with. I've been doing work for them on and off for about 4 years or so. But it looks to be ongoing. I installed all the stage and sound lighting and wiring in the new building they just added. Will start some remodel work next. Its a Christian church and they are growing and I have become friends with a lot of them.


The Golden Rule - "The man with the gold makes the rule"

#64481 - 04/08/06 05:48 PM Re: Charging customer - T&M  
iwire  Offline
Moderator
Joined: Jan 2003
Posts: 4,391
North Attleboro, MA USA
IMO your rates are low, but I don't know what is normal for your area.

That aside I would not lower the hourly rate.

If you really won;t to give them a break I suggest writing the bill at your regular rate than at the bottom give them a "Frequent Customer Discount" (or some such wording) of whatever you feel is appropriate off the total.

In this way that see that they got a break and will not be expecting a lower hourly rate next time.

Take that for what it is worth....I do not run a business.


Bob Badger
Construction & Maintenance Electrician
Massachusetts

#64482 - 04/08/06 05:54 PM Re: Charging customer - T&M  
iwire  Offline
Moderator
Joined: Jan 2003
Posts: 4,391
North Attleboro, MA USA
I should explain my reason for doing it the way I suggested.

If I was going to take a financial hit I would want to milk it for all it's worth.

By writing the bill the way I suggest they get to see exactly what they would have paid and how much of a break you gave them.

IMO saying you cut your rate $5.00 per hour is not as impressive as saying "Look you got a $200 discount!" (One weeks work @ a $5 per hour reduction)


[This message has been edited by iwire (edited 04-08-2006).]


Bob Badger
Construction & Maintenance Electrician
Massachusetts

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