A flat rate question.

[wolfman56]

I've been reviewing the various ways and amounts to bill customers. Thank you all for the info so far.
I've decided that I'm going to have a look, and do a bid for work I do for GC's, and larger stuff, and have a flat rate list for service work.
With flat rate service work, do you give out any pricing over the phone?
Or does everybody charge to go out then "sell" the job, as in no estimates are free?
RW

 

[Gac66610]

prices over phone ... i have, but i tell them i'm guessing and i try to guess high
estimates/bids ... i normally dont charge to go look at something or give estimate on a plan

if you tell them you charge to look or give estimates they might go somewhere else

 

[satcom]

prices over phone ... i have, but i tell them i'm guessing and i try to guess high
estimates/bids ... i normally dont charge to go look at something or give estimate on a plan

if you tell them you charge to look or give estimates they might go somewhere else

Some of the flat rate companies do not charge for an estimate but they do charge a call fee, and wave the fee if the customer agrees to have the estimated work done

We notice the companies in our area operating this way are growing and getting a good share of the business, they understand there are a large number of customers out there willing to pay for for good service.

 

[LEO2854]

Some of the flat rate companies do not charge for an estimate but they do charge a call fee, and wave the fee if the customer agrees to have the estimated work done

We notice the companies in our area operating this way are growing and getting a good share of the business, they understand there are a large number of customers out there willing to pay for for good service.

I agree and that is the best way to do it.:thumbsup:

 

[chris1971]

I always wonder if I should have a fee to go look at a job?

 

[LEO2854]

I always wonder if I should have a fee to go look at a job?

Jut tell them $95 to look.

 

[Fulthrotl]

I've been reviewing the various ways and amounts to bill customers. Thank you all for the info so far.
I've decided that I'm going to have a look, and do a bid for work I do for GC's, and larger stuff, and have a flat rate list for service work.
With flat rate service work, do you give out any pricing over the phone?
Or does everybody charge to go out then "sell" the job, as in no estimates are free?
RW

here's my take on it for itsy bitsy stuff....

i'll quote over the phone based on a pretty detailed discussion with the customer,
and based on the information given, i'll give them a number. this is for stuff totaling
out less than say, $500. quickies.

most of the time, it works out well.... maybe one in ten doesn't and you get to spend 5 hours on a
two hour job. oh, well.

but it takes an hour to two hours to drive over to give someone a price. call it an hour and a half each.
that is optimistic bordering on delusional.

so, that is fifteen hours and $100 worth of diesel fuel saved, less the one sucky job that ate up 3 hours
of that, so i'm 12 hours and $100 bucks ahead in savings.

that twelve hours can amount to another 3 half day quickies, which will give me another $1,500 in gross,
say maybe $1,000 net that i wouldn't have gotten while i was driving around talking to people.

so, i end up at the end of the month either $1,000 richer, or with two days unsupervised play time.

today was like that. i did some woodworking, quoted two people on little stuff, had a third one waste
20 minutes pooping in my ear, and got two calls for quotes i gotta go drive to see... both industrial.
one's a transformer upgrade, and ones 100 amps of 480 in a plant, don't know how far the pipe run is.

dropped $100 worth of diesel in the van, didn't fill it up. you betcha i'm quoting over the phone.

 

[robwire]

I've been reviewing the various ways and amounts to bill customers. Thank you all for the info so far.
I've decided that I'm going to have a look, and do a bid for work I do for GC's, and larger stuff, and have a flat rate list for service work.
With flat rate service work, do you give out any pricing over the phone?
Or does everybody charge to go out then "sell" the job, as in no estimates are free?
RW

look into www.electricalflatrate.com

Flat rate for service work is the only way you will make money doing service work.

 

[Sparky555]

We have been doing flat rate contracting for over 5 years in residential service. 10 years before that we were T&M. Depending on the call there is either a service charge or it is discounted with an accepted quote on the same trip. "On the same trip" cuts our travel time in half over looking, quoting in the office and then scheduling the job. If it is an emergency or loss of power there is a service charge. If they want a quote for cans or something non-essential it is discounted. If it takes discounting it to schedule the appointment, it is discounted. Free estimates are provided only for good long-term clients who never use other electricians.

I advise against giving phone quotes to first-time callers. They will hang up and call around for a lower quote. I consider it a mutual investment/relationship. They want me to provide time and expertise. I want to be paid. People calling for phone quotes are all about price. I offer little information and no prices to callers. On the other hand, I'm an open book for good customers.

To explain the discount: A good residential service pricing manual will have a first task price and an added task price. As a non-existant example first GFCI may be $150 and a second may be $60. The difference between first task and added task can take into account travel, meet & greet, setup & cleanup. If there is a service charge you quote from the added task. If the service charge is discounted you quote from first task.

 

[cowboyjwc]

Customer: So, do you know what's wrong?

Electrician: I have no idea, but it'll be $1500 to fix it.

:lol:

 

[satcom]

Customer: So, do you know what's wrong?

Electrician: I have no idea, but it'll be $1500 to fix it.

:lol:

Who does that?

 

[satcom]

We have been doing flat rate contracting for over 5 years in residential service. 10 years before that we were T&M. Depending on the call there is either a service charge or it is discounted with an accepted quote on the same trip. "On the same trip" cuts our travel time in half over looking, quoting in the office and then scheduling the job. If it is an emergency or loss of power there is a service charge. If they want a quote for cans or something non-essential it is discounted. If it takes discounting it to schedule the appointment, it is discounted. Free estimates are provided only for good long-term clients who never use other electricians.

I advise against giving phone quotes to first-time callers. They will hang up and call around for a lower quote. I consider it a mutual investment/relationship. They want me to provide time and expertise. I want to be paid. People calling for phone quotes are all about price. I offer little information and no prices to callers. On the other hand, I'm an open book for good customers.

To explain the discount: A good residential service pricing manual will have a first task price and an added task price. As a non-existant example first GFCI may be $150 and a second may be $60. The difference between first task and added task can take into account travel, meet & greet, setup & cleanup. If there is a service charge you quote from the added task. If the service charge is discounted you quote from first task.

What usually happens, is someone thinks there is a book somewhere like a menu, where you just select pricing and total it up, they don;t realize it is a process to price a job, you will need to learn how to price a flat rate job, have good trouble shooting skills, and an understanding of job conditions along with good installation skills, learn how to step price, so you don't leave the customer in the dark and stressed with unknowns. many of the leaders in the flat rate service business, are able to deliver a job at a price that can beat many of the T&M guys.

 

[ritelec]

Some of the flat rate companies do not charge for an estimate but they do charge a call fee, and wave the fee if the customer agrees to have the estimated work done

We notice the companies in our area operating this way are growing and getting a good share of the business, they understand there are a large number of customers out there willing to pay for for good service.

"Call Fee". I like that. The free estimate thing has eaten up alot of time and gas from people that are shopping numbers. I had thought about charging for an estimate then if a person excepts the proposal, that would charge would come off the estimate. With all the "FREE ESTIMATES" around, no one would go for it (Buy the way, who ever came up with this free estimate thing should be shot and hung).

So call it a "Call Fee" and waive the fee if the proposal is excepted....... Nice, I like that. Will they? We'll see.

Thanks.
Rich

 

[satcom]

"Call Fee". I like that. The free estimate thing has eaten up alot of time and gas from people that are shopping numbers. I had thought about charging for an estimate then if a person excepts the proposal, that would charge would come off the estimate. With all the "FREE ESTIMATES" around, no one would go for it (Buy the way, who ever came up with this free estimate thing should be shot and hung).

So call it a "Call Fee" and waive the fee if the proposal is excepted....... Nice, I like that. Will they? We'll see.

Thanks.
Rich

I seems they all have have call fees that range from $39 up to $150 the guys with 3 or more trucks appear to be charging $99 to $150 a call and the flat rate guys with less then three trucks are charging $39 to $99 I think you may need to see what your operating expenses are and then chart out a call rate based on your operating expense needs.

1) Sears came to give me an estimate for my washing machine repair they charged $99 just to stop by for an estimate.

2) GE came to give me an estimate on a microwave repair they charged $79 just to stop by for an estimate

These companies do this every day all day and have thousands of customers every day.

Now if your an electrician, none of the above applies, you are expected to work for free or a small token amount, plus the cost of material, that is if you don't set your ground rules from day one and let everyone know you are the best electrician on earth and you charge for your electrical experience, you would be supprised how many people out there are willing to pay for someone who gets the job done.

 

[cowboyjwc]

I seems they all have have call fees that range from $39 up to $150 the guys with 3 or more trucks appear to be charging $99 to $150 a call and the flat rate guys with less then three trucks are charging $39 to $99 I think you may need to see what your operating expenses are and then chart out a call rate based on your operating expense needs.

1) Sears came to give me an estimate for my washing machine repair they charged $99 just to stop by for an estimate.

2) GE came to give me an estimate on a microwave repair they charged $79 just to stop by for an estimate

These companies do this every day all day and have thousands of customers every day.

Now if your an electrician, none of the above applies, you are expected to work for free or a small token amount, plus the cost of material, that is if you don't set your ground rules from day one and let everyone know you are the best electrician on earth and you charge for your electrical experience, you would be supprised how many people out there are willing to pay for someone who gets the job done.

The thing with some of those guys is that they never actually do any work.

Had one come by to look at my washer and dryer. Told me that it woud be $500 to replace the transmission on a $300 5 year old dryer. I told him never mind and gave him his $100. Called another local guy just for kicks and giggles he came out and replaced the rollers for $50 and told me the transmission was fine. I called the other guy back and told him to bring me my check or him, I and the States Attorny General were going to be having a conversation.

What I heard was from the guy that fixed it, is that a lot of these guys do just what the guy had done, they can hit at least 10 houses a day. They don't have to do a lick of work except tear the appliance apart and they're making a $1000 a day. If they get the job, it's just gravy.

Now since I know this trick, I'll never pay a show up fee.

 

[ritelec]

let everyone know you are the best electrician on earth and you charge for your electrical experience,

OK.............

BUT I SUK.








Only playing.....that was a good post and I thank you.

I actually do alot of things.....and I'm "VERY" good at all of them. But I must admit that I'm a master of none.


thank you,
Jack

 

[cowboyjwc]

Who does that?

I don't know. When I first heard the joke, it was a mechanic.

Customer: What does it sound like to you?
Mechanic: It sounds like $1500 to me.

 

[satcom]

I don't know. When I first heard the joke, it was a mechanic.

Customer: What does it sound like to you?
Mechanic: It sounds like $1500 to me.

ok a little slow, I got it "sounds like" the TV spot where the transmission guy listens to the sound the customer makes and then tells them the problem

 

[Sparky555]

What I heard was from the guy that fixed it, is that a lot of these guys do just what the guy had done, they can hit at least 10 houses a day. They don't have to do a lick of work except tear the appliance apart and they're making a $1000 a day.

I hear this on rare occasions but it is a fallacy to make this extrapolation. In residential service there is a substantial loss in leaving a call with only the service charge. The two ECs I know with big businesses NEED to spend $300k+ per year in marketing to keep their guys busy. There goes $1,000.00 per day. The better business model is to sell services and stay on each job for at least a couple hours.

 

[satcom]

I hear this on rare occasions but it is a fallacy to make this extrapolation. In residential service there is a substantial loss in leaving a call with only the service charge. The two ECs I know with big businesses NEED to spend $300k+ per year in marketing to keep their guys busy. There goes $1,000.00 per day. The better business model is to sell services and stay on each job for at least a couple hours.

Yup, $300K a year is average for marketing for a small service shop, just to keep the phone ringing, these guys have to sell just about every call just to meet their other expenses and make a small profit. I think there a lot of guys that tinker with a business, no plans, no real investment in marketing and a shot gun method of marketing, depending on word of hope, put the word out and hope someone will call and them hope they will tell their friends how cheap you work.