Billing for service work

[JES2727]

I'd like to know how other contractors set their rates for service work. For instance, I charge a higher fee for the first hour. This fee is almost double my regular hourly rate, but not quite. Then it's my regular rate for the rest of the job. This would be for service calls and easy installs. I don't charge a "trip charge" or a "truck charge" or anything like that. I just call it my "show-up" fee, and it includes the first hour. This seems to be working for me, except that I've had to raise my show-up fee several times, because I wasn't making enough money on the short calls to make it worth my while. I think I've got a good number now, although if there's a fair amount of drive time involved I get very close to the break even point. I don't charge for travel time, the show-up fee usually covers it.
My other problem is that I haven't always been consistent with this. If the call takes half a day, usually I'm inclined to just charge four hours at the regular rate. The show-up fee is to cover the expenses and hassle of a quick and easy call, because it's already been established that even the quick hits take more than an hour when everything is figured in ( drive time, restocking the truck, etc.) But if I'm there for half a day or more, I figure I'm making enough money at the regular rate that I don't need to charge the show-up fee. Maybe I should stop thinking this way?
I'm toying with the idea of dropping the show-up fee and just charging a two hour minimum. This is essentially the same thing of course, except that all the hours get billed at the same rate. But some customers won't be happy about paying me for two hours if all I did was reset a GFI recep.
I think I'll just stay with the show-up fee.
I'd really like to know what works for other contractors, and what doesn't work. Straight fee? Trip charge? Travel time? Please let me know.

[480sparky]

It doesn't matter whether you call it a 'trip' charge, 'show-up' fee, or 'dispatch' fee, it's all the same thing. You're charging for the cost of driving your truck to & from the job. Tomayto, tomahto.

I charge for service calls so much for the call, and that includes the first hour. Each hour after that is my hourly rate.

[CA_Electrician]

I too charge a minimum fee that reflects a two hour minimum at higher that hourly rate, then reduce the rate for over the two hours. No travel or other fees are included and built into the minimum.

[Dennis Alwon]

I too charge a minimum fee that reflects a two hour minimum at higher that hourly rate, then reduce the rate for over the two hours. No travel or other fees are included and built into the minimum.

I had a customer try and make me stay the whole hour, since she paid for it, and rake leaves. Sounds like you could be raking leaves or cleaning gutters for some time.:grin:

[stickboy1375]

I had a customer try and make me stay the whole hour, since she paid for it, and rake leaves. Sounds like you could be raking leaves or cleaning gutters for some time.:grin:


I would have told her my rate for raking leaves is ALOT more than my electrical rate... :grin:

[LarryFine]

I too charge a minimum fee that reflects a two hour minimum at higher that hourly rate, then reduce the rate for over the two hours. No travel or other fees are included and built into the minimum.
I had a call two days ago, with a request to replace an intermittent bath-light switch. I told the nice lady that, if it was just the switch, I'd charge only the $95 hourly and even throw in the switch. :)

She balked and said she'd find a handyman to do if for half the price. I offered a no-problem, and an invite to call me back if necessary. Needless to say, she didn't call me back. $95 is too much. :rolleyes:

[aline]

I had a call two days ago, with a request to replace an intermittent bath-light switch. I told the nice lady that, if it was just the switch, I'd charge only the $95 hourly and even throw in the switch. :)

She balked and said she'd find a handyman to do if for half the price. I offered a no-problem, and an invite to call me back if necessary. Needless to say, she didn't call me back. $95 is too much. :rolleyes:
Why is it we can't get $95 to come out and change out a switch and yet the Geek Squad charges $100 for estimates or $150 to program a universal remote control. (See the link in the Geek Squad thread)

I guess electrical is so easy a caveman can do it.

The last time I gave a customer a price to change out a switch over the phone I quoted him a $135. He thought I was nuts.

[satcom]

Neighbor lady, just had a handyman string holiday lights, around the door $150

[Energy-Miser]

I had a customer try and make me stay the whole hour, since she paid for it, and rake leaves. Sounds like you could be raking leaves or cleaning gutters for some time.:grin:
Dennis, I thought this was hilarious. I was laughing so hard, my wife stopped her TV watching and asked me what was up. I told her about your raking experience, got her LHAO too. Did it really happen, or you're just extrapolating on some customer attitude? e/m

[emahler]

residential work at T&M is quickly becoming a losing proposition...give them a fixed price, do the work, collect the money...no muss, no fuss, happy customer...

[Energy-Miser]

I'd like to know how other contractors set their rates for service work. ...
You know you opened up a very good discussion, as I am struggling with this issue too, and hoping to learn how everyone else handles it. I found out that customers don't like to hear the words travel time. They simply believe that the EC should eat the travel time along with the gas and vehicle expense, etc. I am leaning toward charging a higher first hour rate, but don't know what to call it and how to set it. Should it be 1.5 x hourly rate? Twice, or what? Also, even with that, in my experience, it is hard to remain consistent as circumstances are often very different. Sometimes I think maybe I should just ask a lot of quesions on the phone, judge the travelling distance, and then give a flat rate on the phone and take a chance. As you can see I have not made up my mind on this one. So far I have been charging one way travel time, and have set my minimum charge for one hour. e/m

[mdshunk]

I actually had a lady almost 6 months ago threaten to call the police on me when I presented her the bill for resetting her garage GFCI. I guess she thought it should be illegal to charge a senior citizen $65.00 to "just press a little button". I guess she forgot I moved 5 million boxes to find what I suspected was a buried GFCI someplace and meggerred out the load side to see if there was a real problem. I just left and promised to send the bill in the mail, which I did several times. We'll go to the district magistrate soon over that (small claims court), and I'll win my stupid 65 dollars.

[GilbeSpark]

You know you opened up a very good discussion, as I am struggling with this issue too, and hoping to learn how everyone else handles it. I found out that customers don't like to hear the words travel time. They simply believe that the EC should eat the travel time along with the gas and vehicle expense, etc. I am leaning toward charging a higher first hour rate, but don't know what to call it and how to set it. Should it be 1.5 x hourly rate? Twice, or what? Also, even with that, in my experience, it is hard to remain consistent as circumstances are often very different. Sometimes I think maybe I should just ask a lot of quesions on the phone, judge the travelling distance, and then give a flat rate on the phone and take a chance. As you can see I have not made up my mind on this one. So far I have been charging one way travel time, and have set my minimum charge for one hour. e/m

How would it work for you if you set a base minimum price just for showing up, say, $65, and then an hourly rate on top of that? That seems like it would be a good way to cover your travel fees without calling it a travel fee.

[ItsHot]

I had a call two days ago, with a request to replace an intermittent bath-light switch. I told the nice lady that, if it was just the switch, I'd charge only the $95 hourly and even throw in the switch. :)

She balked and said she'd find a handyman to do if for half the price. I offered a no-problem, and an invite to call me back if necessary. Needless to say, she didn't call me back. $95 is too much. :rolleyes:
I bet that she pays $95 to have her "blue" hair done up real pretty!

[S Carpenter]

We charge a 2 hour min. on any service call within 25 miles and a 4 hour min within 50 miles and the clock starts at our hourly rate after the 1st hour, this is all explained upfront on the call, ( no wonder Mr. Handyman is always hiring) We also have a contract with the POCO for inside wiring repairs in which we bill the same way

[frank_n]

Why is it we can't get $95 to come out and change out a switch and yet the Geek Squad charges $100 for estimates or $150 to program a universal remote control. (See the link in the Geek Squad thread)

I guess electrical is so easy a caveman can do it.

The last time I gave a customer a price to change out a switch over the phone I quoted him a $135. He thought I was nuts.

Dealing with two different types of customers. The type that doesn't want to pay for a switch would never have a remote control, or a computer in the first place.

[Tiger Electrical]

There are a variety of ways to charge. The key is to cover your expenses. We all have travel expenses which make the smaller jobs of residential service more expensive. It can be a trip charge, additional early hours charge, minimum charge, higher standard rate, or whatever. Different practices can be better in some areas. One of my competitors charges a $150 service charge, another a $75 s.c., some do free estimates with higher hourly rates. Many do free estimates with low hourly rates and last a few months or a year before going back to paying work for employers.

In general, residential service works better with the charges agreed to in advance. I have a service charge which we agree to on the phone, and repair charges for installations which I write up in a Service Work Order (Contract) prior to installation. It's easier to cover your costs when it's a $500 repair, rather than a T&M at whatever/hour plus materials. Sometimes more information doesn't lead to a happy client. They really want to know the final cost, not the hourly rate. T&M can often lead to a shocked client at pay-time. Not good business. My clients know the final bill the whole time I'm installing. Most are writing a check as I'm cleaning up.

Dave

[Mountaineer]

I agree with the last input. Give them a fixed price if at all possible. You can do this 90% of the time. Sometimes you cannot. For instance, I have went into homes where the previous homeowner did several wiring projects himself, he is now deceased and his widow is asking if I can check out the entire home for electrical code violations. This is tuff to quote. You have to do T&M on this. Many reversed polarities, open j-boxes, overloaded circuits etc. She even had her washer outlet (20 amp) wired downstream from the outside WP GFI recp. That was a tough one to find especially when the GFI was tripped before I arrived. I had to think outside of the box.

[ishium 80439]

I just recently started charging an hours time for the 1st half hour and than having the clock start after that. I tell the HO on the phone that its a trip/ diagnostic fee. I've been doing a bunch of new work lately with only a few service calls thrown in so I don't have enough info yet to say it works definatively. I know there was a larger company in town that was using this structure and it seemed to work for them.

[growler]

But some customers won't be happy about paying me for two hours if all I did was reset a GFI recep.


You should never reset a GFCI receptacle and just leave. GFCI receptacles don't just trip, there is normally a reason for it. I have found everything from a sprinkler system spraying water on an outdoor receptacle to bad hair dryer cord causing the GFCI to trip. Take a few minutes and find out what they were doing when the receptacle tripped.
If the receptacle is old then change it out for a newer and better type.

If you spend 30 minutes or an hour there trying to solve the problem people don't mind the two hour minimum so much. Always ask if there is anything else you can check out while you are there. Some people will show you a loose receptacle that they wouldn't otherwise bother with. Many of these can be repaired with an box extensioin and longer screws ( 10 minutes ) and now they feel that they have gotten an added service for their money.

[GilbeSpark]

You should never reset a GFCI receptacle and just leave. GFCI receptacles don't just trip, there is normally a reason for it. I have found everything from a sprinkler system spraying water on an outdoor receptacle to bad hair dryer cord causing the GFCI to trip. Take a few minutes and find out what they were doing when the receptacle tripped.
If the receptacle is old then change it out for a newer and better type.

If you spend 30 minutes or an hour there trying to solve the problem people don't mind the two hour minimum so much. Always ask if there is anything else you can check out while you are there. Some people will show you a loose receptacle that they wouldn't otherwise bother with. Many of these can be repaired with an box extensioin and longer screws ( 10 minutes ) and now they feel that they have gotten an added service for their money.

Good advice.

[480sparky]

You should never reset a GFCI receptacle and just leave. GFCI receptacles don't just trip, there is normally a reason for it. I have found everything from a sprinkler system spraying water on an outdoor receptacle to bad hair dryer cord causing the GFCI to trip. Take a few minutes and find out what they were doing when the receptacle tripped.
If the receptacle is old then change it out for a newer and better type.

If you spend 30 minutes or an hour there trying to solve the problem people don't mind the two hour minimum so much. Always ask if there is anything else you can check out while you are there. Some people will show you a loose receptacle that they wouldn't otherwise bother with. Many of these can be repaired with an box extensioin and longer screws ( 10 minutes ) and now they feel that they have gotten an added service for their money.

That's good advice for any job, not just SCs.

[aline]

Regardless of the problem I always go to the electrical panels, pull off the covers and inspect them. I check and tighten the connections and look for other problems and safety issues. Often times this can lead to additional work. It's amazing how often I'll find loose connections that were never tightened down to begin with. Even in new panels. This is also a good time to slap a sticker on the panel. Cheap advertising.

By the way Mr. Customer has anyone ever mentioned to you the known hazards with Federal Pacific panels? (While handing them a print out from a website on Federal Pacific panels.)

By the way Mr. Customer did you know that the NFPA recomends smoke detectors be replaced every ten years?
We carry these on our trucks and can replace these while we're here at a reduced rate saving you money.

By the way Mr. Customer are you aware of the energy savings you can benefit from by replacing a standard switch with a dimmer switch? Not to mention you'll go through fewer light bulbs. We can install these while here at a much reduced rate.

By the way Mr. Customer how do you turn off those christmas light on your tree?

I crawl under the tree and unplug them.

Mr. Customer would you like to see how you can turn them on and off from the comfort of your recliner? (While showing them an X-10 receptacle with remote control.)

The list of other things you can do for the customer while there goes on and on. I've gone out to reset a GFCI receptacle and left with $900.

Do you accept credit cards?

Why yes, Mr. Customer we do.

I guess I just as well have you do all this stuff now and put it on my credit card.

That's a great idea Mr. Customer. You'll save money and won't have to worry about this stuff anymore. :)

If you don't ask you don't get.
That's why fast food places always ask if you would like to supersize that meal.

[emahler]

but i'm an electrician....not a salesman...my customers don't want to spend more money then they have to.......i try to be fair with my customers, not get rich off of them....my customers know what they want and need....etc, etc, etc....

[480sparky]

but i'm an electrician....not a salesman...my customers don't want to spend more money then they have to.......i try to be fair with my customers, not get rich off of them....my customers know what they want and need....etc, etc, etc....

I can hear Obi-Wan telling Luke now.... "And that is why you shall fail."

[kkwong]

but i'm an electrician....not a salesman...my customers don't want to spend more money then they have to.......i try to be fair with my customers, not get rich off of them....my customers know what they want and need....etc, etc, etc....

We are all a bit of salesman from when we first place the ad, get that phone call and drive out to the appointment/service, we are essentially selling our skills to the customer. Maybe we were recommended to that person by a friend. In either case, we are all salesmen, just in a very specific field.

I agree with everyone that service calls should cover travel, but at the same time, if you go out and reset a breaker and ask for your $150.00, you'll get the evil eye and probably some discouraging words. Like some other people have said, I usually ask them what they were doing when this happened (whether its a breaker, GFCI or something goes BOOM). Then I go and start at the point of complaint and work backwards.

[aline]

If you've ever gone to a job interview you're a salesman.

Everyone is selling something.

[emahler]

my area won't pay that much........people don't want to be sold...if you can't control your overhead, you are a bad businessman...why should my customers pay me more just because they are further away...you shuld add travel into your hourly rate as overhead...it's not economically viable for someone to pay a licensed contractr t reset a gfci...etc, etc, etc...

[kkwong]

While I agree with you, emahler, that overhead should be controlled, sometimes it is hard to set the overhead. I know of shops that have a 50 mile radius (from the shop) before they start to charge the milage (I think its $0.42/mi).

Another thing to think about too, is the demographics of the area. If you know your potential customer can't/won't pay that much, then you need to accomadate that fact. I'm not saying you need to lowball everything, but try to be average. Some of the techs that I know have been called out for breakers and gfci trips when the HO didn't know what to do, and the HO's first instinct is to call an electrician.

I think ultimately you need to find a price that you can live with (as the service provider) and that the customer will accept.

[macmikeman]

You guys reading this have a computer hooked up to the internet. So do the majority of your customers. Payment to cover your travel/truck/overhead can be deposited in your bank account via the internet long before you reach the trouble call location. You ought learn to ask for dispatch charge money before even leaving your shop. Set your rate at a decent enough amount that if you spend 1-2 minutes at the site and all you do is reset a gfi, then you have been paid for that as well, and you can tell your customer "hey this was easy, no further billing". Good advertising. Now you can make your choice if you want to depart or look for other selling opportunity. Ones that do not want to pay for the dispatch fee in the first place, are the ones that are not worth my time or effort. Further work or more involved problem at the site is quoted up front at the customer jobsite.

[emahler]

there are big companies in my area who have been in business for years who only charge $55/hr..and the owner is loaded...i have to compete with them......

[Energy-Miser]

residential work at T&M is quickly becoming a losing proposition...give them a fixed price, do the work, collect the money...no muss, no fuss, happy customer...
Yes, am thinking about it. But what if you figure 1 hour, and go there and end up 3 hours? If you assume the worse on the other hand you may be pricing yourself out of the market. But I sure like the fixed pricing concept, fewer challenges to your invoicing. e/m

[220/221]

For those of you that don't know, emahler is being sarcastic in all but his original post.

But what if you figure 1 hour, and go there and end up 3 hours?

Figure worst case scenarios.


I have embraced the fixed price residential service plan, I just haven't fully implemented it.

[Energy-Miser]

How would it work for you if you set a base minimum price just for showing up, say, $65, and then an hourly rate on top of that? That seems like it would be a good way to cover your travel fees without calling it a travel fee.
Yes it will work. Can call it diagnositic fee. The other day the HVAC guys came to our office to fix the oil furnace, $150 diagnostics on top of the hourly. To add insult to injury, their cure didn't even work, we still had to call another company to come and complete the job! e/m.

[Energy-Miser]

We charge a 2 hour min. on any service call within 25 miles and a 4 hour min within 50 miles and the clock starts at our hourly rate after the 1st hour, this is all explained upfront on the call, ( no wonder Mr. Handyman is always hiring) We also have a contract with the POCO for inside wiring repairs in which we bill the same way
What is the acceptance rate? Do a lot of potential customers walk away, or do you find that they are accepting of it? Where are you located, and what is the hourly going rate in your area? Lot's of questions, but I am trying to put it in better perspective and see if something like that might work around here. e/m.

[Energy-Miser]

There are a variety of ways to charge. The key is to cover your expenses. We all have travel expenses which make the smaller jobs of residential service more expensive. It can be a trip charge, additional early hours charge, minimum charge, higher standard rate, or whatever. Different practices can be better in some areas. One of my competitors charges a $150 service charge, another a $75 s.c., some do free estimates with higher hourly rates. Many do free estimates with low hourly rates and last a few months or a year before going back to paying work for employers.

In general, residential service works better with the charges agreed to in advance. I have a service charge which we agree to on the phone, and repair charges for installations which I write up in a Service Work Order (Contract) prior to installation. It's easier to cover your costs when it's a $500 repair, rather than a T&M at whatever/hour plus materials. Sometimes more information doesn't lead to a happy client. They really want to know the final cost, not the hourly rate. T&M can often lead to a shocked client at pay-time. Not good business. My clients know the final bill the whole time I'm installing. Most are writing a check as I'm cleaning up.

Dave
I like fixed price, but currently charge hourly. I tell my guys, don't spend a lot of time doing a serice call. I understand that sometimes finding the source of the problem for an outlet that is out of power, can be tricky and take a long time and I don't fault my guys if it does take a long time, but to a customer, at the end of the day it is still worth only whatever it was that they had in mind, prior to start of the work. So if you spend four hours on that, then good luck collecting your hourly rate, even if they pay, they will be bitter and you will not get a repeat call. So, all told, I think fixed price is probably better, although one has to be consistent. If the GFI were tripped, you should still have the stomach to charge the quoted rate, knowing that you may spend half a day on that next illusive fault and will have to eat that expense. I talk tough, but I have been to a home with a GFI tripped and I charged only a 1/2 hour, ignoring my own minimum 1 hour policy!! And so it goes... e/m

[Energy-Miser]

I agree with the last input. Give them a fixed price if at all possible. You can do this 90% of the time. Sometimes you cannot. For instance, I have went into homes where the previous homeowner did several wiring projects himself, he is now deceased and his widow is asking if I can check out the entire home for electrical code violations. This is tuff to quote. You have to do T&M on this. Many reversed polarities, open j-boxes, overloaded circuits etc. She even had her washer outlet (20 amp) wired downstream from the outside WP GFI recp. That was a tough one to find especially when the GFI was tripped before I arrived. I had to think outside of the box.
No, I think on this one you had to think outside of the house!! :mad:

[Energy-Miser]

my area won't pay that much........people don't want to be sold...if you can't control your overhead, you are a bad businessman...why should my customers pay me more just because they are further away...you shuld add travel into your hourly rate as overhead...it's not economically viable for someone to pay a licensed contractr t reset a gfci...etc, etc, etc...
Normally if they call me from a long ways away for a small job, I tell them that it might be cheaper for them to call a local electrician. We get those calls sometimes, due to internet advertising, people sometimes don't read the address on the homepage and asume that you are just in their area. e/m

[growler]

but i'm an electrician....not a salesman...my customers don't want to spend more money then they have to.......i try to be fair with my customers, not get rich off of them....my customers know what they want and need....etc, etc, etc....

Eric, have you ever considered that Ideal may be putting something in Yellow 77 that kills brain cells. HVAC contractors, plumbers, carpenters, roofers and even painters don't seem to be as dumb when it comes to business as we electricians.

Probably just another conpiracy theory.:cool:

[Energy-Miser]

While I agree with you, emahler, that overhead should be controlled, sometimes it is hard to set the overhead. I know of shops that have a 50 mile radius (from the shop) before they start to charge the milage (I think its $0.42/mi).

Another thing to think about too, is the demographics of the area. If you know your potential customer can't/won't pay that much, then you need to accomadate that fact. I'm not saying you need to lowball everything, but try to be average. Some of the techs that I know have been called out for breakers and gfci trips when the HO didn't know what to do, and the HO's first instinct is to call an electrician.

I think ultimately you need to find a price that you can live with (as the service provider) and that the customer will accept.
A lot of tripped GFIs and CB's can be fixed at no charge on the phone, with a little questioning and remote control of the HO. I have done that before and they are very thankful for the free service. I understand that it could be tricky, specially if the customer is elderly, or has no clue, etc. but it has worked for me on some occasions. e/m.

[Energy-Miser]

there are big companies in my area who have been in business for years who only charge $55/hr..and the owner is loaded...i have to compete with them......
Yeah they are like the big cartels, they drive us out of business and then jack up their prices!

[emahler]

Yeah they are like the big cartels, they drive us out of business and then jack up their prices!

not quite....

[emahler]

Eric, have you ever considered that Ideal may be putting something in Yellow 77 that kills brain cells. HVAC contractors, plumbers, carpenters, roofers and even painters don't seem to be as dumb when it comes to business as we electricians.

Probably just another conpiracy theory.:cool:

could be....we use the clear gel :D

[emahler]

A lot of tripped GFIs and CB's can be fixed at no charge on the phone, with a little questioning and remote control of the HO. I have done that before and they are very thankful for the free service. I understand that it could be tricky, specially if the customer is elderly, or has no clue, etc. but it has worked for me on some occasions. e/m.

stupid question...how much money does each one of these calls cost you in real $? and how many other jobs have you received due to the thankful customers? how many $ can be attributed to them?

[peter d]

Yeah they are like the big cartels, they drive us out of business and then jack up their prices!

Actually, there is an very large flat rate company in my area (http://www.gemplumbing.com/) that gets big bucks to do service changes and whatever else. To my knowledge, they are only helping our industry, not hurting it.

I for one am extremely happy that they are charging big bucks because it means we can all raise our prices.

[kkwong]

A lot of tripped GFIs and CB's can be fixed at no charge on the phone, with a little questioning and remote control of the HO. I have done that before and they are very thankful for the free service. I understand that it could be tricky, specially if the customer is elderly, or has no clue, etc. but it has worked for me on some occasions. e/m.

It's worked for me as well on some occasions. I think the bigggest problem is trying to convince them that a simple pressing of the button or flipping the switch will do the trick. The elderly market and the recent HO market are the ones who usually take the service call.

Edit to add: at least in my experiance.

[brian john]

I have a 4 hour minimum.
Emergency calls are 4 hour minimum plus portal to portal


Plus mileage for any out of my normal jurisdiction.

[nakulak]

A lot of tripped GFIs and CB's can be fixed at no charge on the phone, with a little questioning and remote control of the HO. I have done that before and they are very thankful for the free service. I understand that it could be tricky, specially if the customer is elderly, or has no clue, etc. but it has worked for me on some occasions. e/m.

I'm curious - how did it work out when the breaker blew out of the can or started smoking ?

[GUNNING]

I use the trip charge and 1st hour fee rate. I cant compete with the local handyman though. Anyone with a pickup truck and a trailer is a contractor here. They do it all; plumbing, A/C, Sheet rock, walls, tile, cabinets, carpet, painting, gas, kitchens, bathrooms, and oh yeah, Electrical. All unlicensed, no inspections, for cash. I get to fix what they couldn't or screwed up after the fact and their tail light warranty expires. Even the local Housing Authorities uses these guys.
I agree with selling the job for a given amount. Then nobody is surprised and you get to influence the tendencies of your customer by making alternative solutions. You get to control what is to be done and for how much and how long. I think the times of T & M are a disappearing. Ive always made more money when I sell a job than when I go in on T & M. I'm going to go order new proposal sheets today and start making up a flat rate sheet.

[bstoin]

Time to ruffle a few feathers...

This thread is exactly why I would be very selective about who's advice to follow.
Anyone who thinks a service electrician doesn't need a little salesmanship is destined to fail...I wouldn't hire a service tech unless he was willing to "sell" a little bit, at least. I cannot tell you how many thousands of dollars I have made over the years "selling." For example, if all that is needed is resetting a tripped GFCI (see earlier post) try taking a look around:panel, lights, timers, photo-switches, dimmers, etc. I'd be willing to bet I could find a lot of work in ANY house just by spending a lousy 15 minutes "holding hands" with the home-owner. I have on several occasions "sold" a service upgrade on similar service calls. As Zig Zigglar says "nobody cares how much you know until they know how much you care." Customers must know (or made to believe) that the money isn't the bottom line.

Getting back to the OP...hourly rates will vary according to where you live (already been mentioned.) Here in Boca Raton ($$$) service techs charge from $89 per hour on up. A company I had been working for was charging $119 per hour plus a service charge depending on how far the drive. Sometimes up to an additional $79.

Someone made a complaint that a larger company was "putting them out of business" because they were only charging $55/hour. This is called "capitalism." Get used to it...someone will ALWAYS be willing to work for less and will take jobs right out from under your nose. It has happened to everyone here. On the other hand, there are many people who don't mind paying a little more if the service is better and they know a licensed, qualified person will be doing the work (not a handyman). This business, like all businesses, is very competitive. The key to success, I have seen, is to be FAIR with your pricing, show up when you are supposed to and do better work than the other guys. Repeat business is gold. Most of my repeat customers don't even ask me for a price...they know I am going to 1)show up 2)do a good , clean job and 3)not get greedy. These customers are priceless. They pay good and provide referrals who do the same.
Stop whining about what everyone else is doing and focus on what you should be doing.

[jrannis]

Regardless of the problem I always go to the electrical panels, pull off the covers and inspect them. I check and tighten the connections and look for other problems and safety issues. Often times this can lead to additional work. It's amazing how often I'll find loose connections that were never tightened down to begin with. Even in new panels. This is also a good time to slap a sticker on the panel. Cheap advertising.

By the way Mr. Customer has anyone ever mentioned to you the known hazards with Federal Pacific panels? (While handing them a print out from a website on Federal Pacific panels.)

By the way Mr. Customer did you know that the NFPA recomends smoke detectors be replaced every ten years?
We carry these on our trucks and can replace these while we're here at a reduced rate saving you money.

By the way Mr. Customer are you aware of the energy savings you can benefit from by replacing a standard switch with a dimmer switch? Not to mention you'll go through fewer light bulbs. We can install these while here at a much reduced rate.

By the way Mr. Customer how do you turn off those christmas light on your tree?

I crawl under the tree and unplug them.

Mr. Customer would you like to see how you can turn them on and off from the comfort of your recliner? (While showing them an X-10 receptacle with remote control.)

The list of other things you can do for the customer while there goes on and on. I've gone out to reset a GFCI receptacle and left with $900.

Do you accept credit cards?

Why yes, Mr. Customer we do.

I guess I just as well have you do all this stuff now and put it on my credit card.

That's a great idea Mr. Customer. You'll save money and won't have to worry about this stuff anymore. :)

If you don't ask you don't get.
That's why fast food places always ask if you would like to supersize that meal.

I like this guy.. We can all learn from these survival tactics.

I alway try to go into the panel and do a "mini tune-up" on short calls

[bigjohn67]

How much to charge? Seems the main part not brought up is to know your cost. Employee's hourly wage + cost of having him directly employed + hourly cost of doing business + tools, vehicle expense. Figure this on an hourly basis. You will find that if you pay a guy (for example) $10.00 per hour it cost you about $20.70 per hour that he is on the clock.

One of the main problems with a customer having sticker shock is a tech not communicating with the customer during the job. Let the customer make the decision for you to continue. I think they call this customer service.

[RayS]

You guys reading this have a computer hooked up to the internet. So do the majority of your customers. Payment to cover your travel/truck/overhead can be deposited in your bank account via the internet long before you reach the trouble call location. You ought learn to ask for dispatch charge money before even leaving your shop. Set your rate at a decent enough amount that if you spend 1-2 minutes at the site and all you do is reset a gfi, then you have been paid for that as well, and you can tell your customer "hey this was easy, no further billing". Good advertising. Now you can make your choice if you want to depart or look for other selling opportunity. Ones that do not want to pay for the dispatch fee in the first place, are the ones that are not worth my time or effort. Further work or more involved problem at the site is quoted up front at the customer jobsite.

now that sounds great.

[Energy-Miser]

I don't think anyone brought this up, but do you guys normally get paid on the spot for service type work or do you bill later? What is a tactful way of saying "I really would rather get paid now, as opposed to bill you later?" e/m

[JohnJ0906]

I don't think anyone brought this up, but do you guys normally get paid on the spot for service type work or do you bill later? What is a tactful way of saying "I really would rather get paid now, as opposed to bill you later?" e/m

Residential is COD. The customer is told when they call the shop to schedule the appointment. We leave with a check, or call in with a credit card before we leave. Commercial is billed, as is work for a builder.

[satcom]

I don't think anyone brought this up, but do you guys normally get paid on the spot for service type work or do you bill later? What is a tactful way of saying "I really would rather get paid now, as opposed to bill you later?" e/m

We never leave a residential customer without being paid before we leave, they are told when they call for service , that payment is due when service is rendered. some of our comericial accounts also pay cod, bepending on their credit status. There is no need to be tactful to collect money due.

Alll but a few GC's pay day rate payment due at end of day.

Have your auto repaired , and try to tell the mechanic you want to be billed, see what happens, just about every service business demands payment on delivery of the service.
Is this a part time thing and you have a pile of cash laying around?

[Rewire]

Always be tactful ,I usually hand them the bill and say "Will that be cash or check?"