Billing for service work

[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.

could be....we use the clear gel

 

[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]

Ouch

Ouch

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 aroundanel, 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]

Know your cost

Know your cost

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?"