different rates?

Status
Not open for further replies.
I

ishium 80439

Senior Member
Location
Denver foothills via the Horn of Africa
I'm trying to get a feel for what others think. If you do work for some one who consistently gets you work do you charge standard service rates or cut them a deal? I recently did some work at an excavator's home. Any time he needs any electrical done he automatically calls me and doesn't put it out to bid. We did some service work on his personal home and I invoiced him full service rates. After I sent out the invoice I felt that maybe I should have given him some consideration. On the other other hand he is a business man that understands what it takes to keep a business afloat. Thoughts?
 
I give breaks in my rates from time to time to clients who are very loyal to me. Usually it is in the form a freebie service call to reset a C/B or some such thing or it comes in the form of accomodation in my already busy schedule. It's good PR and I look at it the same way I do advertising or charity work. It's a cost of doing business and some of my regulars expect it. No problem.
 
ishium 80439 said:
Any time he needs any electrical done he automatically calls me and doesn't put it out to bid. We did some service work on his personal home and I invoiced him full service rates. Thoughts?
Click to expand...

That's they best way, invoice at full rates. If he's a good customer make sure you always do good work for him and try to get to his work promptly.

The reason that some customers call is not the price but because they trust your company to get the job done right with no surprises.
 
growler said:
That's they best way, invoice at full rates. If he's a good customer make sure you always do good work for him and try to get to his work promptly.

The reason that some customers call is not the price but because they trust your company to get the job done right with no surprises.
Click to expand...

GC's that know what they are doing, will make money on your services, by marking up your charges, what they need is not a price reduction but, all the items noted above, the GC's that price shop, or always looking for the lowest price, are usually lost themself, and did not price their job right, ao they look for the subs to bail them out from under estmated work.
 
ishium 80439 said:
I'm trying to get a feel for what others think. If you do work for some one who consistently gets you work do you charge standard service rates or cut them a deal? I recently did some work at an excavator's home. Any time he needs any electrical done he automatically calls me and doesn't put it out to bid. We did some service work on his personal home and I invoiced him full service rates. After I sent out the invoice I felt that maybe I should have given him some consideration. On the other other hand he is a business man that understands what it takes to keep a business afloat. Thoughts?
Click to expand...
I am an electrical contractor also and I do look at repeat customers when it comes to consideration on price it is part of doing business.Everyone likes to feel special and if knocking off a few dollars on a personal project keeps one of my repeat contractors happy I have no problem doing it.What I usually do is give them material at cost and that is enough to give them the warm fuzzys and keeps my phone # at the top of the rolodex.
 
ishium 80439 said:
I'm trying to get a feel for what others think. If you do work for some one who consistently gets you work do you charge standard service rates or cut them a deal? I recently did some work at an excavator's home. Any time he needs any electrical done he automatically calls me and doesn't put it out to bid. We did some service work on his personal home and I invoiced him full service rates. After I sent out the invoice I felt that maybe I should have given him some consideration. On the other other hand he is a business man that understands what it takes to keep a business afloat. Thoughts?
Click to expand...

Discounts/other perks are a double edged sword. They're great because they allow you to maintain a customer through thin times but they can also be a pain. Lets say your frequant flyer has a friend who needs some work done and after telling the friend a price the friend calls you to do some work at the same price (assuming its the same type job). Your new customer is expecting one price and when you invoice them at a higher price they will think something is going on and that you may not be as good as you were made out to be.

If you were so inclined to give a discount, let it be something small and basic like a GFCI/CB reset or maybe throw in a SP switch. That way you can take care of that urge to be charitable and still help fund not only your business, but your family and fun as well. :)
 
I have Gc's that always use me and I make lots of money off them they find work for me. I have wired small jobs up to a whole basement for some of them at my cost. Some might think it is stupid but I know that what I have saved in finding and quoting work due to the steady amount of work I get from these guys is worth not making a profit at thier homes. One of the guys sent a guy over to do all the trim for me in my basement at no charge so I think it will run both ways. I doubt that he was upset you didn't give him a break.
 
Update. Just this morning I got a call from a long time customer turned friend. I have worked for this guy wiring his residential remodel/additions on his never ending custom home for almost 30 years.

He said his central vacuum unit wouldn't shut off. I'm guessing it's the relay. I go there and find the over-ride switch at the unit is turned on (wife did it by mistake) and flipped the switch back to normal. Viola! He said "send me a bill". I said, "what's new in the wine cellar Pete?". I walk off with a great bottle of Cab, he's happy, wife is saved. No sweat.

I'll uncork this baby one evening and try it out while I'm trying to figure out how to pay the bills.:wink: For me it ain't always about the money. I'm enjoying my life to the max and quite often the money just gets in my way.
 
It was a hypothetical situation but I've heard plenty of stories about it before. What I was alluding to was giving discounts above 25% depending on the job and material margin.

However, there is a difference in the markets that I did not address. IMO you can give a GC that you have a long successful business relationship with a discount in materials or labor abd as bikeindy brought up it can go both ways.
 
One lesson I have learned on TRADING with other trades is that I always trade in retail value. That avoids alot of hard fellings later on.
 
comps

comps

I would have given him a freebee on that one. If he feeds you work without getting other prices, in my opinion, you owe him one. It is valuable to have someone like that and it is important to keep him happy. As long as the work was not more than a day or two it will come back to you. If he insists on paying let him pick up the price on the materials.
 
I have a few "good customers" that are contractors. When I do work for them they try to get me the most money possible. These guys will tell me what I deserve to make.

I have a few "good customers" that are business owners. They trust me enough to call me and give me the job without even knowing how much it will cost them. Sometimes we fudge my way and other times we fudge their way. I'll do a simple task for free because I'm in the neighborhood one day, and another day they'll give me the company credit card to fill up my gas tank, buy a tool, or whatever.

I have a few "good customers" that are home owners. They usually have a clean home environment, a relaxed sense of etiquette, and good outlook on life. They have a couple tools I don't have and let me use them, and they'll leave the key out for me.

To me, sometimes the social benefits outweigh the money. But most people that I have a good relationship with want me to get paid my due.
 
Thanks for the replies. It seems that opinion on this is all over the board. This particular guy is definately all about wanting someone reliable and knowledgable rather than saving a few bucks (somehow I managed to convince him I was that guy:smile: ). The common theme I see runnning through these responses is that most of you have a gut feeling of how to handle these situations. My gut tells me I should have given him some consideration. The good news is that I have the chance to make it up. I am doing some work on his dad's home today and I'll cut him a little slack (not give my work away mind you, maybe no travel charge or low material markup, I haven't quite decided). In the long run I think that will mean more to him anyway.
 
ishium 80439 said:
I'm trying to get a feel for what others think. If you do work for some one who consistently gets you work do you charge standard service rates or cut them a deal? I recently did some work at an excavator's home. Any time he needs any electrical done he automatically calls me and doesn't put it out to bid. We did some service work on his personal home and I invoiced him full service rates. After I sent out the invoice I felt that maybe I should have given him some consideration. On the other other hand he is a business man that understands what it takes to keep a business afloat. Thoughts?
Click to expand...

I'm sure we all know that old saying "beezness is beezness, and love is BS".

Don't think that discounting my bid ever gained me a thing. As you correctly stated "he is a business man". Nuff said.

Best Wishes Everyone
 
HighWirey said:
I'm sure we all know that old saying "beezness is beezness, and love is BS".

Don't think that discounting my bid ever gained me a thing. As you correctly stated "he is a business man". Nuff said.

Best Wishes Everyone
Click to expand...
What a sad attitude,I have never given a discount based on the expectation of a return. I prefer the saying "Do the right thing because it is the right thing to do" gain is not always found at the bottom line.
 
I have two GC's that I do work for (all other business is with owner's). GC#1 is constantly on the prowl for the just-started-his-own-electrical-contracting-shop-and-doesn't-understand-his-costs-yet guy. I have been doing work for him for over three years and thru the superintendant's I have heard of several other EC's that have done work for this GC. They usually don't stay long. Probably because this GC drags his heels when it comes to payments. I keep him on a very short leash when it comes to money.

One time he called and said, "We got that kitchen remodel job but I had to throw in three extra recessed lights in the kitchen for free."

I said, "OK, I'll send over the change order."

He said, "But I didn't charge the customer for them."

How generous of you to offer my work for FREE !!!! He got billed, not full cost and we wound up not installing them anyway.

The second GC doesn't screw around. He's been around long enough to appreciate good work. He calls, we move. When we invoice him we get paid fast. I have done a few service calls for him for free. One time the elevator stopped working. The elevator tech comes out, meters the panel and says, "Your 3pole shunt trip 100amp C/B is defective. You need an electrician to replace it." Now, this C/B is only a couple years old so I meter the panel. Turns out he lost a phase coming in from the service gear. Long story short, I replaced a 1/4x20 bolt in the service gear and fixed the problem. A lot cheaper than a new breaker!!!

So the second GC doesn't even bother bidding out the electrical on his projects. In fact, we're doing the electric on his new house.

So, IMO, a good customer will warrant some favors from me. Those who try and cut pennies in half get nothing.

A mason contractor once told me, "Don't be a pig because all pigs eventually get slaughtered."
 
As I see it, if he is feeding me scheduled, work year around, and not just a number of jobs over the year, I would be willing to work out nice terms for the reqular scheduled work, and if he had a small job at home, a days work or under, I would send someone, and let him supply or pay for any material.
 
I make it a practice to show a line item called "Professional Discount" and put %25 of the total price of the job on that line. Job would be at full retail before the discount of course.
I also do not have a problem with "good will" type work if its not too far out of the way and dosent take me away from real work.
 
Status
Not open for further replies.
Top