Flat rate pricing

[IrishRugger]

I'm toying with the idea of going to flat rate pricing on certain things. I just put together an estimate for a job in a 12 year old home that has a series of different requests. I based my pricing on past istallations times and current material and labor costs. Please let me know if my prices sound fair or if I sound like I am giving things away. Thank you in advance.

Remove & replace 3 hard wired interconnected smoke detectors (battery back up) I provide Smokes Labor & Material $117.40

Remove & replace 3 ceiling fans in house, (8ft ceilings) Home owner provides ceiling fans $225.00 total.

Demo existing bath vent fan install new Broan QTRE080R in its place. $332.22

Install in finished basement with drop ceiling power/ data opening for flat screen TV, run up to 30ft of one each of HDMI cable RCA cable, CAT5e cable and RG6U coaxial cable to location where AV equiptment is. (Basically I'm fishing these wire up and down walls and thru drop ceiling to have no data wiring showing around flat Screen TV. $420.00

 

[satcom]

I'm toying with the idea of going to flat rate pricing on certain things. I just put together an estimate for a job in a 12 year old home that has a series of different requests. I based my pricing on past istallations times and current material and labor costs. Please let me know if my prices sound fair or if I sound like I am giving things away. Thank you in advance.

Remove & replace 3 hard wired interconnected smoke detectors (battery back up) I provide Smokes Labor & Material $117.40

Remove & replace 3 ceiling fans in house, (8ft ceilings) Home owner provides ceiling fans $225.00 total.

Demo existing bath vent fan install new Broan QTRE080R in its place. $332.22

Install in finished basement with drop ceiling power/ data opening for flat screen TV, run up to 30ft of one each of HDMI cable RCA cable, CAT5e cable and RG6U coaxial cable to location where AV equiptment is. (Basically I'm fishing these wire up and down walls and thru drop ceiling to have no data wiring showing around flat Screen TV. $420.00

It would be a real guess without knowing your cost of doing business, and all the job conditions, In my area the flat rate guys charge $150 for the first smoke replacement and $70 for each additional device, The ceiling fan will differ depending on past install, was it installed right the first time, or did they fail to install the proper fan support boxes?, does the fan have a light kit, or is it just a fan?

That bath fan replacement, may depend on how much work to prepare for the new install, and is the existing wiring in good shape, try to find your break even cost, so you can set a firm rate, then track all your work, so you can update your future estimates, an you will be on your way to pricing for profit.

 

[jbelectric777]

How big is your company? I was considering putting the tools back on myself because inspector positions are slim to none and if I do land one or two municipalities they offer no benefits and want me either 3 hrs a week or some 10 hrs a week, its not worth the aggrivation anymore. I always went by my local economy, meaning if things are good for everyone I know there isnt 10 other guys askin the owner what his lowest price was to beat me by 20 bucks. Ya have to get paid and cover yer overhead and salary, if your too low you have a customer for life, bad part is that customer will always want it cheap. I had a guy have me do some work, we never discussed cost (i thought he knew my rate based on previous jobs) the guy ties me up adding all old work outlets, troubleshooting his sign thats been off for ten plus years and when I give em the bill for 7 hrs he says: "I THOUGHT OUTLETS ONLY COST 40 BUCKS A PEICE" I about crapped myself thinkin Im soooo screwed out of money, I should have had it in writing ahead of time, well I charged em 490 labor plus material and a 20% markup on material, was a nice guy explained the entire bill, knocked off a hundred bucks and never heard from him again..........

 

[Rewire]

I'm toying with the idea of going to flat rate pricing on certain things. I just put together an estimate for a job in a 12 year old home that has a series of different requests. I based my pricing on past istallations times and current material and labor costs. Please let me know if my prices sound fair or if I sound like I am giving things away. Thank you in advance.

Remove & replace 3 hard wired interconnected smoke detectors (battery back up) I provide Smokes Labor & Material $117.40

mat 3x15.00 = 45.00 ,labor 1.5 hr x 75.00 = 112.5 ,112.5 + 45 =157.5

Remove & replace 3 ceiling fans in house, (8ft ceilings) Home owner provides ceiling fans $225.00

3.5 hr x 75.00=262.50

total.

Demo existing bath vent fan install new Broan QTRE080R in its place. $332.22

material 90.00 3.5hr lanor x 75.00 =352.50

Install in finished basement with drop ceiling power/ data opening for flat screen TV, run up to 30ft of one each of HDMI cable RCA cable, CAT5e cable and RG6U coaxial cable to location where AV equiptment is. (Basically I'm fishing these wire up and down walls and thru drop ceiling to have no data wiring showing around flat Screen TV. $420.00

4.5 hrx75.00= 337.5 + material @ 100.00 =437.5

I add a 45.00 trip charge to these totals

 

[petersonra]

Maybe I am missing something but I have replaced several bathroom fans myself and it never took more than 15 or 20 minutes and I am a terrible electrician.

Are you running new duct work as well?

 

[fireryan]

Maybe I am missing something but I have replaced several bathroom fans myself and it never took more than 15 or 20 minutes and I am a terrible electrician.

Are you running new duct work as well?

Im guessing he must need to cut bigger opening and maybe fish another switch leg but its hard to say on the info. 15 or 20 minutes to install an exhaust fan? I must be missing something

 

[ksmith846]

Maybe I am missing something but I have replaced several bathroom fans myself and it never took more than 15 or 20 minutes and I am a terrible electrician.

Are you running new duct work as well?

Will they all take 15 to 20 minutes? 100% of them? He is "flat rate pricing". He has to make sure he's making money for every install. It's not the objective to make a little on 3 and lose it all back on a hard one.

 

[satcom]

Maybe I am missing something but I have replaced several bathroom fans myself and it never took more than 15 or 20 minutes and I am a terrible electrician.

Are you running new duct work as well?

If he has to install a different housing and replace the duct, 50% of the ones we change the duct are filled with cat hair and everything else, it is not unusual to spend hours on an exhaust change out, or a few minutes to replace just the fan mod in a nutone bath fan..

 

[Split Bolt]

I don't know what part of the country you are in, what your competitors charge or anything like that, so I can't comment on your prices. You said you are basing your prices on past jobs, so you should know whether or not you made money before. I don't know how anybody can use this flat rate system for pricing. Every job is unique! Just because there are ceiling fans there now, doesn't mean they were properly installed! Are you going to re-hang a fan on a plastic nail-on just because the last guy did and it didn't fall? (I've run into this many times) T & M is fair to all involved. Where I live in Northern Virginia, the buildings can vary so much (a lot of the houses in Old Town Alexandria were built in the 1700's and had knob & tube wiring installed as soon as electricity became available) that "flat rate" would mean "lose money" on a lot of jobs and "make money" on a few!

 

[cowboyjwc]

My idea of flat rate pricing has always been...

"What do you want done?"

"How much do you have?"

:grin:

 

[Rewire]

flat rate is for the tech to upsell items it is usually a tiered system,easy 10.00 hard 15.00 difficult 20.00.

job .............. , new fan ... , new fan /box ..... ,new fan /box /circuit
Hang ceiling fan.... 75.00 , .. 175.00 , ... 250.00

 

[satcom]

I notice everyone had their own idea of what flat rate pricing is, flat rate pricing is nothing more then presenting the customer with a total price to do a job, the guys that call their service people a tech, and pay them on a bonus system, are at best, in most licensed states an illegal operation, many contractors give a contract price, with a total amount for the job, a (flat rate) their employees are not paid on sales amounts, they are paid an hourly rate, or salary.

 

[Ruff-N]

Why don't you invest in some flat rate pricing software or books, a lot simpler. This way someone has done all the leg work for you all you need to do is make $$$$$.

 

[CopperTone]

I'm toying with the idea of going to flat rate pricing on certain things. I just put together an estimate for a job in a 12 year old home that has a series of different requests. I based my pricing on past istallations times and current material and labor costs. Please let me know if my prices sound fair or if I sound like I am giving things away. Thank you in advance.

Remove & replace 3 hard wired interconnected smoke detectors (battery back up) I provide Smokes Labor & Material $117.40

Remove & replace 3 ceiling fans in house, (8ft ceilings) Home owner provides ceiling fans $225.00 total.

Demo existing bath vent fan install new Broan QTRE080R in its place. $332.22

Install in finished basement with drop ceiling power/ data opening for flat screen TV, run up to 30ft of one each of HDMI cable RCA cable, CAT5e cable and RG6U coaxial cable to location where AV equiptment is. (Basically I'm fishing these wire up and down walls and thru drop ceiling to have no data wiring showing around flat Screen TV. $420.00

your total price for this job would be $1094.62

my price for this job would have been $1375.00 and I would send 1 licensed guy and 1 apprentice and they better be done by lunch.

 

[Rewire]

I notice everyone had their own idea of what flat rate pricing is, flat rate pricing is nothing more then presenting the customer with a total price to do a job, the guys that call their service people a tech, and pay them on a bonus system, are at best, in most licensed states an illegal operation, many contractors give a contract price, with a total amount for the job, a (flat rate) their employees are not paid on sales amounts, they are paid an hourly rate, or salary.

What would be illeagal about their operation?

 

[satcom]

What would be illeagal about their operation?

In some states the electrical contractor license laws require the person doing the work, to be an employee, not an independent contractor, and some of the flat rate systems suggest they use independent contractors rather then employees, and some have excessive rates which would not fly with most consumer affairs departments.

 

[petersonra]

Im guessing he must need to cut bigger opening and maybe fish another switch leg but its hard to say on the info. 15 or 20 minutes to install an exhaust fan? I must be missing something

I have replaced a couple where all I had to do was remove the existing unit and install a new one. It did not take me all that long. But I did not run any wiring, or duct, or have to fiddle with the dry wall. Just took out what was there and put a new one in its place.

 

[Ruff-N]

your total price for this job would be $1094.62

my price for this job would have been $1375.00 and I would send 1 licensed guy and 1 apprentice and they better be done by lunch.

Hardliner I like that where do I apply !

 

[Rewire]

In some states the electrical contractor license laws require the person doing the work, to be an employee, not an independent contractor, and some of the flat rate systems suggest they use independent contractors rather then employees, and some have excessive rates which would not fly with most consumer affairs departments.

1099 vs employee I understand but you can pay a base and bonus and they are employees. As far as rates what is illeagal about getting the most you can?As far as I know no government agency regulates our pricing.

 

[satcom]

1099 vs employee I understand but you can pay a base and bonus and they are employees. As far as rates what is illeagal about getting the most you can?As far as I know no government agency regulates our pricing.

http://www.azcentral.com/arizonarepublic/business/articles/1201pricegouge01.html
Price gouging for one thing, out state board warns about pricing practices, and here is some information on the issue