How do you charge a service call.

[mike1061]

I don't want to "gouge" the people in the lower cost of living area (where I live now) by adopting going rates for the more expensive areas nor do I want to be driving three or four hours a day to work for people who want me because I'm cheaper than their local electricians.

I look at it as people are paying me for my time and the materials I use. Makes no difference where they live (to me at any rate). Me, I personaly charge $150 for the first hour and $65 there after. I give plenty of discounts for lots of reasons, but that's the starting rate. The higher rate for the first hour is, for the lost wages traveling, gas and parking.
Thanks
Mike

[kwired]

As long as you dont tell the customer you are basing the charge on a two hour minimum you will get less push back from the customer.

Right. Think of how the customer sees it. Tell them you have a minimum charge of $$$.$$ and that seems acceptable as compared to "I am going to charge you for two hours even if the job only lasts for 15 minutes". Reality is you charged them the same in either case, but one is percieved different than the other.

[bgelectric]

Right. Think of how the customer sees it. Tell them you have a minimum charge of $$$.$$ and that seems acceptable as compared to "I am going to charge you for two hours even if the job only lasts for 15 minutes". Reality is you charged them the same in either case, but one is percieved different than the other.

So when do you start your clock at your regular hourly rate?
If you are there for 2 hours, do you hand them a bill for 2 hours worth (your minimum rate) or do you start your clock after the first hour and hand them a bill for 3 hours worth of work?

I guess im trying to find the balance for whats fair to both you and the customer.

[kwired]

So when do you start your clock at your regular hourly rate?
If you are there for 2 hours, do you hand them a bill for 2 hours worth (your minimum rate) or do you start your clock after the first hour and hand them a bill for 3 hours worth of work?

I guess im trying to find the balance for whats fair to both you and the customer.

I don't think there is a definite answer. Every business is going to have differing conditions that dictate what they decide to do. But being consistant is the one thing you should do. If you find you are taking a high number of calls that result in a lot of unbillable time then you probably need to increase minimum charges to compensate, if you don't take a lot of these calls maybe you do take the occasional loss, but at the expense of a satisfied customer - something that is hard to say is wrong.