Billing for service work

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GilbeSpark

Senior Member
Location
NC
growler said:
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

Senior Member
Location
Iowegia
growler said:
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

Senior Member
Location
Utah
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.
 
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emahler

Senior Member
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

Senior Member
Location
Iowegia
emahler said:
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

Senior Member
emahler said:
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.
 

emahler

Senior Member
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

Senior Member
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

Senior Member
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

Senior Member
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

Senior Member
Location
Maryland
emahler said:
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

Senior Member
Location
AZ
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

Senior Member
Location
Maryland
GilbeSpark said:
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

Senior Member
Location
Maryland
S Carpenter said:
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

Senior Member
Location
Maryland
Tiger Electrical said:
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

Senior Member
Location
Maryland
Mountaineer said:
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

Senior Member
Location
Maryland
emahler said:
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

Senior Member
Location
Atlanta,GA
emahler said:
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

Senior Member
Location
Maryland
kkwong said:
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.
 
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