How do you charge a service call.

[Rewire]

You would wonder why a professional electrician would charge you a fee to diagnose a problem? I never had one person say or bring up what you just said:blink:

I am not questioning you charging the fee as we do the same what I am questioning is why you offer to reduce it by 50% if you do the repair? someone tells me $119.00 then says $60.00 dollars the thing on my mind was he ripping me off at $119 when it should have been $60?

I see no advantage in cutting the fee in half it just says to the customer "my fee was to high" now you have a customer who expects your diagnostic to be $60.00 on the next call.

 

[KVA]

Again...Like i said before never had anyone say to me what you just said. And just so you know many people wave the whole charge if they are hired to do the repairs.

Your thinking is strange sometimes:blink:

 

[KVA]

I am not questioning you charging the fee as we do the same what I am questioning is why you offer to reduce it by 50% if you do the repair? someone tells me $119.00 then says $60.00 dollars the thing on my mind was he ripping me off at $119 when it should have been $60?

I see no advantage in cutting the fee in half it just says to the customer "my fee was to high" now you have a customer who expects your diagnostic to be $60.00 on the next call.

And with your logic I guess all the sales that stores have like 10,20,30...% off, buy one get one free, etc.. people think they are getting ripped off in the first place too?:lol:

 

[Rewire]

Again...Like i said before never had anyone say to me what you just said. And just so you know many people wave the whole charge if they are hired to do the repairs.

Your thinking is strange sometimes:blink:

I never liked the idea of holding the customer hostage over the service fee. It just sounds like hire me or else I will charge you. Most people know that nothing is free so you wave one charge just to make it up in another. What is the message you are sending to the customer? Our service fee and diagnostic charge are part of our straight forward pricing structure waiving those fees would force me to charge the customer more for the repair to offset the lost revenue.

 

[A1cbr]

It's our straight forward pricing guide from oue ESI membership (clockwork home services) . This guide was developed over ten years of working with the Mr Sparky franchises. I have not found anything that is not covered in the diferent levels. We are still in the process of fully converting to it I bill at our hourly on some and use the guide on others then we do comparisons we find the guide gives ud a better overall ticket.

I have never used a pricing guide. I am interested in finding out more about this ESI. How long have you been using this guide?

 

[mike1061]

I have never used a pricing guide. I am interested in finding out more about this ESI. How long have you been using this guide?

I'd like info on this too. The craftsman books haven't worked out for me.
Thanks
MIke

 

[Ponchik]

Take a look at www.electricalflatrate.com
I have been with them for about 8 months and am very happy. The pricing for the software is very aff
rtable

 

[gadfly56]

I never liked the idea of holding the customer hostage over the service fee. It just sounds like hire me or else I will charge you. Most people know that nothing is free so you wave one charge just to make it up in another. What is the message you are sending to the customer? Our service fee and diagnostic charge are part of our straight forward pricing structure waiving those fees would force me to charge the customer more for the repair to offset the lost revenue.

So, if I find the problem, maybe it's a couple hundred worth of work. The customer is already in for $119. I'm here, right now, they already know what my hourly rate is. On their side the choice is: 1) Pay the $119, head for the yellow pages and listen to all the good electricians say "No, I can't quote what you describe over the phone. I need to see it" and have a couple more visits sucking away some of his 26,000 days, or 2) Get back $59.50 and get his problem solved now. It's an incentive payment.

You can't look at the rebate as lost revenue. Part of the reason for the fee is to cover unproductive time. If the customer gives you the job on the spot, your down time is zero. I don't know how it is now, but years ago body shops would charge $10 for an estimate and credit it against the job if you went with them. Same thing here as far as I can see.

 

[Rewire]

I have never used a pricing guide. I am interested in finding out more about this ESI. How long have you been using this guide?

contact ESI and they will send you an invitation to a Profit day seminar. It is free and includes lunch. It will either grab you or it wont. If you are looking to be a service based company then this might be the right vehicle to get you there. We joined in october and attended executive perspective in January.T hey really give you brain overload for three days in florida. When we got back we started working on the things we identified as priority mainly getting the financials in order we started training on the straight forward price guide in May the support staff at ESI were always available through email or a phone call. We have noted an average increase in our tickets the big thing the push is tracking. If it can be tracked it can be improved. Our call taker has been taking the online training tio help improve her conversion and closing rate.

 

[KVA]

So, if I find the problem, maybe it's a couple hundred worth of work. The customer is already in for $119. I'm here, right now, they already know what my hourly rate is. On their side the choice is: 1) Pay the $119, head for the yellow pages and listen to all the good electricians say "No, I can't quote what you describe over the phone. I need to see it" and have a couple more visits sucking away some of his 26,000 days, or 2) Get back $59.50 and get his problem solved now. It's an incentive payment.

You can't look at the rebate as lost revenue. Part of the reason for the fee is to cover unproductive time. If the customer gives you the job on the spot, your down time is zero. I don't know how it is now, but years ago body shops would charge $10 for an estimate and credit it against the job if you went with them. Same thing here as far as I can see.

Spot on.:thumbsup:

 

[Rewire]

So, if I find the problem, maybe it's a couple hundred worth of work. The customer is already in for $119. I'm here, right now, they already know what my hourly rate is. On their side the choice is: 1) Pay the $119, head for the yellow pages and listen to all the good electricians say "No, I can't quote what you describe over the phone. I need to see it" and have a couple more visits sucking away some of his 26,000 days, or 2) Get back $59.50 and get his problem solved now. It's an incentive payment.

You can't look at the rebate as lost revenue. Part of the reason for the fee is to cover unproductive time. If the customer gives you the job on the spot, your down time is zero. I don't know how it is now, but years ago body shops would charge $10 for an estimate and credit it against the job if you went with them. Same thing here as far as I can see.

The question is what kind of a perseption did you leave the customer. The reason we stopped these so called "rebates" was from negative customer comment cards. The main complaint went like this " we were glad the fee was waived but we wondered why it was being charged in the first place" we realized that although this reduction in cost was welcomed it left a bad perception of our pricing structure.

Our unbillable hours are factored into our pricing system the service fee and diagnostic are a part of that structure. Our system is based on a maximum of four billable hours a day we also dont sell on price so using monetary incentives to land the work is not a part of our system. Our goal is to maximise each ticket so giving back money just does not factor in.

 

[KVA]

The question is what kind of a perseption did you leave the customer. The reason we stopped these so called "rebates" was from negative customer comment cards. The main complaint went like this " we were glad the fee was waived but we wondered why it was being charged in the first place" we realized that although this reduction in cost was welcomed it left a bad perception of our pricing structure.

Our unbillable hours are factored into our pricing system the service fee and diagnostic are a part of that structure. Our system is based on a maximum of four billable hours a day we also dont sell on price so using monetary incentives to land the work is not a part of our system. Our goal is to maximise each ticket so giving back money just does not factor in.

Sorry it didn't work for you. What works for some may not work for others.

Are your customers college kids? If so that may be the reason you get "why were we charged in the first place" because any adult with common sense knows nothing in this world is free. So you actually have people question you after you come to their door and do diagnostic work "why were we charged in the first place?" :blink::blink:

My responses are like "oh that sounds good to me"

 

[Sparky555]

I rebate the service charge to help set the appointment if the potential customer hesitates (but never for emergencies). The pricing manual accounts for this with first task, second task columns. The first task includes travel, setup & cleanup. It is a common system that has received few complaints.

 

[gadfly56]

The question is what kind of a perseption did you leave the customer. The reason we stopped these so called "rebates" was from negative customer comment cards. The main complaint went like this " we were glad the fee was waived but we wondered why it was being charged in the first place" we realized that although this reduction in cost was welcomed it left a bad perception of our pricing structure.

Our unbillable hours are factored into our pricing system the service fee and diagnostic are a part of that structure. Our system is based on a maximum of four billable hours a day we also dont sell on price so using monetary incentives to land the work is not a part of our system. Our goal is to maximise each ticket so giving back money just does not factor in.

OK, if you're basing this on actual customer feedback you have to go with what works. I'm not sure I'd want a customer base that can't understand that after the diagnosis is done, if you send me on my way it's the full fee, but if I do the work now I'm saving travel time and scheduling resources I don't spend later and I can pass that on to them.

Let me ask this: Under your system, what is the customer's incentive to hire you on the spot, or later, to do the work rather than call someone else for a "second opinion"?

 

[Ponchik]

Before i changed to flat rate my pricing was: First hour is $175 then $85 each additional hour after that to troubleshoot and find the problem. But i was loosing first time callers because they would call another company and their SERVICE CALL was $89 or other # much less than mine. Now, keep in mind theirs was SERVICE CALL which did not include any work, my $175 included the first hour of work. Unfortunately the customer does not hear "my $175 includes the first hour of work" they just heard the dollar amount and consequently called the less expensive competitor.

Now i have changed, i charge a service call then give them a written estimate on the spot ( i have a printer and computer in the car) the estimate is printed (looks very professional). 99% of the time they go ahead with the repair. I don't refund the service call fee. I will give discount to military, seniors and preferred customers.

I am very happy with what i have now. If they are willing to pay why not collect. Sending them a coupon "FREE Service call" for future is a good idea.

 

[Rewire]

OK, if you're basing this on actual customer feedback you have to go with what works. I'm not sure I'd want a customer base that can't understand that after the diagnosis is done, if you send me on my way it's the full fee, but if I do the work now I'm saving travel time and scheduling resources I don't spend later and I can pass that on to them.

Let me ask this: Under your system, what is the customer's incentive to hire you on the spot, or later, to do the work rather than call someone else for a "second opinion"?

Their "incentive" is based on factors other that monetary return our closing rate is based on building a quality experience and addressing each concern of the customer as well as dealing with objections along with building a perception of value for our service.. We build a perception of value cutting a fee in half or dropping it completly would lower that perception of value. This also puts them in the mindset that all our pricing then becomes negotiable. From a financial standpoint their are better ways to increase your closing rate than to leave money on the table. If our techs are at the point they cannot close without giving back money then we need to revisit how we are being percieved by the customer and train better on closing. To us it is not a matter of the right way or the wrong way it is about why leave money on the table?

 

[Ponchik]

Their "incentive" is based on factors other that monetary return our closing rate is based on building a quality experience and addressing each concern of the customer as well as dealing with objections along with building a perception of value for our service.. We build a perception of value cutting a fee in half or dropping it completly would lower that perception of value. This also puts them in the mindset that all our pricing then becomes negotiable. From a financial standpoint their are better ways to increase your closing rate than to leave money on the table. If our techs are at the point they cannot close without giving back money then we need to revisit how we are being percieved by the customer and train better on closing. To us it is not a matter of the right way or the wrong way it is about why leave money on the table?

agree :thumbsup: Especially ..... "Why leave money on the table"

 

[mike1061]

Very intresting, but it's over $1200. A year
Thanks
Mike

Take a look at www.electricalflatrate.com
I have been with them for about 8 months and am very happy. The pricing for the software is very aff
rtable

 

[KVA]

Their "incentive" is based on factors other that monetary return our closing rate is based on building a quality experience and addressing each concern of the customer as well as dealing with objections along with building a perception of value for our service.. We build a perception of value cutting a fee in half or dropping it completly would lower that perception of value. This also puts them in the mindset that all our pricing then becomes negotiable. From a financial standpoint their are better ways to increase your closing rate than to leave money on the table. If our techs are at the point they cannot close without giving back money then we need to revisit how we are being percieved by the customer and train better on closing. To us it is not a matter of the right way or the wrong way it is about why leave money on the table?

You have your "techs" close deals and do the work? I hope they are being compensated to the max for that! Doing the work and making the deals sounds like they are running the business and you are just collecting the checks. Are you a GeekSquak subcontractor? Never heard of electricians being called "techs":lol:

Also what money do I leave on the table by knocking off $60? That $119 was to cover my time and expenses I don't make any money with that charge. The money is made in the repair and I end up doing the majority of the repairs.

By lowering or cutting a fee lowers perception of value? Funny I buy tools on sale and it never changes the "perception of value" in my mind...same with any other product.

The world runs on rebates, sales, and deals what rock do you live under? I guess the enormous amounts of discounting and sales that car dealerships offer lowers the "perception of value"?

 

[Rewire]

You have your "techs" close deals and do the work? I hope they are being compensated to the max for that! Doing the work and making the deals sounds like they are running the business and you are just collecting the checks. Are you a GeekSquak subcontractor? Never heard of electricians being called "techs":lol:

my "techs are trained to close the deal and also to maximize each ticket that is what is called 'profit" and my goal is to have them do the work and I just collect the checks

Also what money do I leave on the table by knocking off $60? That $119 was to cover my time and expenses I don't make any money with that charge. The money is made in the repair and I end up doing the majority of the repairs.

you just left $60 on the table so?unds like some accounting classes might help you better understand income and expenses so you are saying if you get the job you didnt incure expenses or time

By lowering or cutting a fee lowers perception of value? Funny I buy tools on sale and it never changes the "perception of value" in my mind...same with any other product.

yes lowering your price does affect the perception of value if someone offered for sale a $300,000.00farrarri for 2500.00 would you think great deal or would you think whats wrong with it

The world runs on rebates, sales, and deals what rock do you live under? I guess the enormous amounts of discounting and sales that car dealerships offer lowers the "perception of value"?

are you wal mart? selling a product is very different from selling a service You can offer unlimited products but you are limited on service.