Flat Rate Or T&M

jpplumbing

I have now been in business for two years now doing strickly service work. I am now thinking of switching over to flat rate once i finish my HVAC schooling. I am looking for your opions on this from guys who have switched over. Also how did you go about setting up the price guides. Thanks

gitnerdun

Here we go again.....If I were flat rate I would probably lose my best customers, as the flat rate guy they used to use did.

jpplumbing

i have been trying to stay away from it but i have talked to a couple of local guys who work for flat rate companys and they say that almost no one complains about the prices. in fact they say that the customers perfer to want a price up front. i usually give a ball park figure if a customer asks for a price and typical i do come close to it. actually 9 out of 10 times it ends up being cheaper for the customer. just tring to figure the best way.

mahlere

maybe they were the other guys' worst customers?

gitnerdun

There is always that possibility, I guess. I would have a hard time charging the flat rate if the job went real smooth. I try to treat people the way I would want to be treated. I am an "old dog", this I know.

mahlere

and that is fine, just realize that there is nothing inherently wrong with flat rate. it's a way for contractors to actually make money in this game. it's incredibly difficult to make money at T&M in residential markets

mdshunk

Erik, can you describe what the 'qualification' procedure was like for Mr.Electric? When I started to look into it a while back, it seemed painful to me. How many years have you been operating that system? Did you ever operate without the system? And how is the before and after, in terms of owner's profit?

mahlere

marc,

can't really answer specifics in a public forum, sent you a PM