We starting using Flat Rate Pricing about two years ago. Didn't have many issues with our customers after we explained why we went to this system. If we replace your toilet at time and material and the technician runs into trouble or is not as experienced as another technician (therefore taking more time to do the job), the customer would of course be charged more than if it was a speedy job. You also can't tell them ahead of time how much it is going to cost. So, from a homeowner's perspective it's a good system. As an example, you go to a restaurant and order your dinner, know how much it will cost, and pay the bill when you are done ... it doesn't matter how long it took to cook, etc. From a business perspective, sometimes we make more money than we would have if it was a speedy job and other times we may not if there are problems ... but, when the job is done the customer doesn't complain about the price because they authorized the price we quoted before we start ... no pricing wars after we're done and no calls to the office saying they got ripped off. As for the "assesment fee" if they tell us they don't like the price, we collect the $49 and go on our way (has only happened once), if they authorize the work to be done, we waive the fee. This fee is basically to cover SOME of our costs associated with coming to their home.
The most difficult part of changing was getting our technicians to give them the price and get the authorization PRIOR to starting the job ... but we've resolved those issues!
Here in Northern Virginia there are alot of permit runners ... I've seen them at the county buildings when I get permits ... just haven't asked them how much they charge or how they go about doing what they do. My husband is the licensed one in our company and either I get the permits or I pay one of my kids to go get them. For one county, I can actually do the whole thing online - wish other counties would allow us to pull trade permits that way! I was just curious what others do ...