The key is to find customer's who's market will bear the kind of prices in the links below.petersonra said:
http://www.higherfi.com/spkrlist/speakerlist.htm
http://www.partsexpress.com/pe/showdetl.cfm?Partnumber=110-439
Flat Rate Contracting
- Thread starter roger3829
- Start date
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http://www.higherfi.com/spkrlist/speakerlist.htm
http://www.partsexpress.com/pe/showdetl.cfm?Partnumber=110-439
romexking
Senior Member
- Location
- Marriottsville, Maryland
petersonra said:
...so are you trying to tell me that everyone should have the same price, but in order for me to make money, I just have to be more efficient than the next guy?
Do you also think that the manufacturers of all of the products in all of the stores just charge what they THINK people will pay for the product or is it more realistic that they have actually done a cost analysis for the product, and then charge what is NEEDED to make the product? It is no different with us. If you can't charge what you need to cover expenses and profit, then don't stay in business.
Oh, while we're on the subject, can you reconcile your economic priciples with the business plans of....let's say Kmart and Nordstrom. They both sell many of the same type of products, but at very different prices. Also, keep this in mind, if price was the only factor in decision making, we would all be driving a Yugo. My point is that the price is certainly not the lynch pin in a decision to use one contractor over another.
tonyou812
Senior Member
- Location
- North New Jersey
Roger you have to stop thinking like an employee and more like a buisness owner. Last week I had a job that involved hanging a small chandalier and installing a new center light in a bedroom. half way through it the HO asked if I could change 3 light bulbs that were 25 or so feet high. I said sure no problem.it took me about half hour and I charged her an extra 100 bucks for it just for PITA factor. I had to move a bunch of furniture and carry my extension through a maze of "chachkies" And I cleaned the cobwebs in the corner of the ceiling. And the lady had no problem with that she acually was very happy that that she finally got them changed out, and she was asking me about landscape lighting possibilities in a few weeks.
the moral of this story is just cause you might think its to much money dont assume that your customer will. Beileve it or not there are plenty of people that recognize good service. Its 2008 not 1975 a hundred dollar bill is the new 20 dollar bill.
the moral of this story is just cause you might think its to much money dont assume that your customer will. Beileve it or not there are plenty of people that recognize good service. Its 2008 not 1975 a hundred dollar bill is the new 20 dollar bill.
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I was just wondering.MJJBEE said:
How did you determine this was in the ballpark?
What if it had been $95 per hour or $140 per hour?
Would it still be in the ballpark?
Did you come up with this based on some facts or was this just your gut feeling?
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You guys are the best. I had a rough one today and started second guessing myself and my pricing. You have reaffirmed my faith in what I am worth as a contractor and reminded me of the things in life that are important.
Thanks for the kick in the ^%$!!:wink:
Thanks for the kick in the ^%$!!:wink:
peter d
Senior Member
- Location
- New England
KnobnTube said:
It's a legit price if it was quoted, which it probably was.
KnobnTube said:
Some of this stuff should be taken with a grain of salt.
More power to the 'flat raters', I say. Basically, they have figured out a way to charge more per hour by using a different presentation to the customer. Those who are not generally succeptable to these types of gimmicks may have a difficult time swallowing it. It takes a superb 'salesman' and a naive customer. I'm neither of those.
peter d
Senior Member
- Location
- New England
ike5547 said:
Which appears better to the customer? A "flat rate" fixed price, or giving them an hourly rate with no guarantee of how long the job could take, therefore no cap to the potential price of the job?
If you quote a price you are working for a flat rate anyway.
bikeindy
Senior Member
- Location
- Indianapolis IN
ike5547 said:
Your kidding right.
Auto repair goes by book rate and if the book says it is a 3 hour job that is what you pay even if the guy fixes it in 15 minutes.
And flat rate pricing is fair too everyone. A lot of the work I do could be hard to judge time on for a lot of contractors and when giving a price they will figure more time to cover themselves. As for selling, the work we have done sells itself, I have been in business for almost 6 years (not that long) and have had not one complaint. customers love it when they pay exactly what was quoted.
peter d said:
I'm always willing to provide the customer with a cap to the price based on a worst case scenario. My estimates are alway based on worst case scenarios. If the customer is unwilling to accept it I take a walk.
Flat rating appears to be a cookie cutter aproach. The price is fixed at a minimum before you arrive to look at the job. Instead of a minimum price set on a specific case by case method the minimum is set more general basis and can be applied across a broader spectrum of jobs. If that works for you that's great and I'm not faulting you for it. Who doesn't want to make more money?
mengelman
Member
- Location
- East Texas
Here in Texas it takes 6 years to become a master electrician. Most people take 8 or 10 or more. Compare that to how long it takes to become a doctor or lawyer.
Ok, now you have been in it 20 years or more. Hows your back? Hows your knees? Whats that worth.
Charging too much is one of the last things you should worry about.
Give excelent service, do a above average job, be proud of what you do, work clean, you will be able to charge what you need to .
Ok, now you have been in it 20 years or more. Hows your back? Hows your knees? Whats that worth.
Charging too much is one of the last things you should worry about.
Give excelent service, do a above average job, be proud of what you do, work clean, you will be able to charge what you need to .
KnobnTube said:
Then you have never been to a new car dealer to have work done, how do you figure that any automoutive tech makes thay kind of money, you have no idea of the cost for operating a service station operation, these guys have a large investment in prime location properties, again another guy thinking all the money comming in is profit, with no idea of costs of doing business.
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