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Flat rate

12K views 55 replies 16 participants last post by  smellslike$tome 
#1 ·
I have been reading several of your threads and posts comparing T&M and Flat Rate, as a new business I have encountered problems with T&M. Obviously, I am speeking of residential service only. It seems to me everyone wins with flate rate. While making it a hell of a lot easier on me to quote and invoice jobs no more preparing to defend my price when I present the bill. I havent begun using it yet but its making sense to me any tips or suggestions are greatly appreciated. Does anyone know of a good flate rate pakage???
 
#2 ·
ricks_plumbing said:
I have been reading several of your threads and posts comparing T&M and Flat Rate, as a new business I have encountered problems with T&M. Obviously, I am speeking of residential service only. It seems to me everyone wins with flate rate. While making it a hell of a lot easier on me to quote and invoice jobs no more preparing to defend my price when I present the bill. I havent begun using it yet but its making sense to me any tips or suggestions are greatly appreciated. Does anyone know of a good flate rate pakage???
Rick.... if you'd care to PM me with your address, I have a plumbing flat rate system CD that I'd be pleased to mail to you.
 
#5 ·
I just caught wind to this forum from looking up flat rate information and I regeistered.
I am too VERY interested in flat rate. I was trying to make something up my self, and found some stuff of the internet(which was WAY higher than mine). I allowed for the worst case and then some.
I looked up Frank Blau from WI. Hopefully they will send info. I feel this is something I have to do.
Any comment and suggestions from experience would be great.

God Bless,

Song Dog
 
#14 ·
www.upfront price. com Best place to start. Registration free , give some of your buis cost info,location and you will get sample books free , you customize them to your situation (and did I mention it's FREE?) :thumbsup: www.upfrontprice.com
That was not my point, when I did service work, years ago, we would often get calls from customers saying they were quoted x amount to replace a kitchen sink faucet, we were always lower because we were T&M, it was the same for pump replacements. Keep in mind, we were union, and by far cheaper than outfits using flat rate, so what reason did you give the customer for the difference in cost?
 
#15 ·
killer...there is a whole industry on how to overcome sales objections...price is really one of the easiest.

you simply redirect their focus from price to service or something else.

it's not really difficult, but it's not something that can really be spelled out here...

if you want to know more, read the editorialist's in P&M magazine or check out Matt Smith, he is awesome at selling this stuff...

but the basic premise is to get away from price. Learn how to do that, and you can make money.
 
#18 ·
i am using flat rate pricing in my plumbing & hvac business. have been for about 3 years. works great on hvac service & repair, but we are still struggling & uncertain on plg side. the more common a service or item the less expensive it can be marketed easily on flat rate. we fought flat rate, but found most customers wanted some type of definite answer concerning pricing, not be told it would be time and material. with flat rate , you explain there is a diagnostic fee of x amt of $$$ and after the problem is diagnosed they would be given upfront pricing on the needed repair, at which time the homeowner would approve or deny the repair. in my area in indiana near indianapolis, a good many service & retrofit companys are using flat rate, which also does cut down on the amount of free estimates. most comapnys in this area, that are on flat rate will not even quote guesstimates for any type of repair by phone. they explain a qualified tech will arrive, for x amt of $$$ & when problem is found will give customer repair cost info. this is a lengthy subject. am anxious to read others findings on falt rate.
 
#20 ·
Mahlere, I became a Ben Franchise long after that post I made. Since then I changed my signature under my name.
Yes, we have a Straight Forward Price Guide. I love it and customers do also.
Do you know about the Mr.Sparky, it is growing leaps and bounds.

In Christ,

Song Dog
 
#23 ·
Mr. Sparkey

There is one of their truck on Thompson Rd near Beech Grove. If I'm reading this right they are linked to Ben Franklin? Huh never knew!

Dee
I never heard of SPHC or do the letters stand for something??

I know you never heard of me either, But only been in buisness for less than a year for myself and I'm now only a one man shop.
 
#24 ·
We have a One Hour and Ben Franklin at the same building along with 2 other names. The guy that owns all of em keeps screwing the people of our town over so he keeps changing the names but keeps the same phone numbers....lol. They got me on my heating and air so now I have to take em to court :furious:
I never knew that the One Hour and Ben Franklin were one of the same franchise. I wonder if the other names they use are not tied in some how?

WOW.... I just found out that 72 degrees (one of their other names) is also a franchise, not sure if it`s tied in with One Hour and Ben Franklin?
 
#25 ·
Flat rate rules. I hate T&M with a passion. I will not--absolutely not--work for T&M.

My first flat rate experience was with Mike Diamond before he had a price book. I did 25k a month in sales and that was back in the late '80s or so in L.A.

Now that I have my own gig, I can sure appreciate Mike's training and his vision of a functional repair company.
 
#27 ·
So, based on this I could open a shop next to yours and do T&M based at $85.00 an hour, charge time and a half for any after hours work, and be consistently lower in price than you are, and tell the end user that flat rate shops are basically screwing them.
 
#34 ·
I wonder why we have alot of return clients. I would guess more than 1/2 of our customer base or more.
We get happy letters and svc report cards back with postive comments and remarks.

Though you have an opinion, I do respect that.

But back to thread, it comes down to value, svc, product and real guarantees.
How do auto service dealers price your repair out, pretty much the same deal. The customer knows ahead of time, the $, before you start with options. They love the option to choose for whats best for them.
It also makes it alot simpler. Diagnosis the situation, show the repair or replacement cost w/options, and they get to choose.

In Christ,

Song Dog
 
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