Free Service Calls?

[emahler]

Any of you ever been in a fender-bender? What's the first thing your insurance agent tells you?.......go out and get two or three estimates.

Ever pay for any of those estimates? No. Now think of the body shops... they have people traipsing in all day long getting estimates, and they know darn well that less that 1/3 of them will ever become a customer.

They simply have put the cost of doing all those free estimates into the cost of the jobs they do get.

when the customers start bring their electrical problems to your shop, go ahead and give free estimates....

an estimate takes 10 mins to perform, it's the drive time and wasted time that costs money...

 

[SEO]

Good point.

 

[aline]

Aline, this is how I figured out how to deal with it. Number one is no leaving the shop without the fee paid already

That would be nice but I'm allready having enough difficulty booking calls when I mention a dispatch fee let alone convincing them to pay for it in advance with a credit card.

It's easy to say I'm not going out unless I get a dispatch fee upfront but when work is slow and the bills are piling up you start changing your mind when you're not booking the calls.

 

[aline]

I went on a service call that took about an hour. After I was finished and was processing his credit card payment he made the comment "Wow you charge as much as a doctor".

I just said; "Really? How much does a doctor charge to come out to your house?"

That's one of the problems with our business. You're at the customers house and he's watching you and knows how long it took. He knows it only took you fifteen minutes and he knows he can buy that outlet you installed for 45 cents at Home Depot. With auto repair shops you typically drop your car off in the morning and pick it up in the evening. You have no idea how long it took them to make the repairs.

 

[bradleyelectric]

Any of you ever been in a fender-bender? What's the first thing your insurance agent tells you?.......go out and get two or three estimates.

Ever pay for any of those estimates? No. Now think of the body shops... they have people traipsing in all day long getting estimates, and they know darn well that less that 1/3 of them will ever become a customer.

They simply have put the cost of doing all those free estimates into the cost of the jobs they do get.

been in a fender bender lately? The guy I deal with in this area is an approved shop for insurance companies, meaning he deals with the insurance companies directly. He doesn't do rust work. You take it to him and don't have to go to 3 estimates. I'm pretty sure that stuff is outdated.

 

[bradleyelectric]

He knows it only took you fifteen minutes.

It sometimes is hard to enlighten them to the fact that it took 26 years to know what/ how to check, fix that outlet. Not 15 minutes

 

[satcom]

Any of you ever been in a fender-bender? What's the first thing your insurance agent tells you?.......go out and get two or three estimates.

Ever pay for any of those estimates? No. Now think of the body shops... they have people traipsing in all day long getting estimates, and they know darn well that less that 1/3 of them will ever become a customer.

They simply have put the cost of doing all those free estimates into the cost of the jobs they do get.

The body shop goes not send a fully equipped truck, and skilled trade person to your, you go to him. Now the insurance company telly you what shop is approved no more estimates.

 

[LarryFine]

What I'm not seeing is anyone explaining to the caller the difference between an estimate and a service call. I offer free estimates, but that doesn't necessarily include me traveling to the location. It depends on the job.

If someone asks me for an estimate to repair something, I can give them that on the phone. My T/S rate is $150 for the first hour. When they ask "What about the free estimate?", I respond "I just gave it to you."

Then, I explain that work must be done to discover what needs repair, unless they can tell me what's causing the problem. I can make an educated guess, and can often find and fix the problem at the same time.

 

[c2500]

Well,

If you go to three body shops, they are going to pull out a flat rate book and give virtually identical estimates. They know what the insurance companies are willing to pay.... the amount they say they will charge. Sadly, we as an industry have let the consumer trample us. Now that the economy is bad, it gets worse. Since gas is down, free estimates are not as costly, but they still cost. Since I am also a home builder, I get publications related to residential construction. Most everyone says to charge for everything you do. Also, to copyright what ever paper/plans you give the HO. At least with that, you have some protection. I also know the owner of a very high end cabinet shop. The guy that refuses to provide layouts unlss he has the job. His philosophy is that they will find someone cheaper, and they will build to what he drew out. He said he misses out sometimes, but he sure does have a nice shop, good employees, and a load of business.

As said before, we must educate the consumer. There is far more than slinging romex to our job. Knowledge costs money. Skill costs money.

I was laughing th other day. A good friend that is a doctor was discussing how lawyers have it made. They charge a high fee, but you seldom use them so $125 to $250+ an hour is not a big deal. After all, you use them once every so many years. He pointed out that people complain about doctor's charges. Why? Because people (especially with kids) see the doctor alot and can't seem to find the value in his services. Yet, his level of education far exceeds what lawyers have...(well most anyway).

We are not alone in people thinking we should be cheap or free. Unfortunately, we just have alot in our trade that work for next to nothing. Also, the barriers to entry in our profession are just a trip to Home Depot away.

c2500

 

[macmikeman]

That would be nice but I'm allready having enough difficulty booking calls when I mention a dispatch fee let alone convincing them to pay for it in advance with a credit card.

It's easy to say I'm not going out unless I get a dispatch fee upfront but when work is slow and the bills are piling up you start changing your mind when you're not booking the calls.

Aline, I get the feeling you are pretty much all service work, am I right? I take my hat off to you guys who depend on that 100 per cent. Me, I approach 50% service and the other time I get to deal with chimpanzee's, I mean GC's. They get free estimates, most of their jobs run more than 100 hours. The trick there is to make sure that the hours all exceed my breakeven and I try to set my goal to stick to double breakeven for them as best as I can.

 

[zappy]

I went on a service call that took about an hour. After I was finished and was processing his credit card payment he made the comment "Wow you charge as much as a doctor".

I just said; "Really? How much does a doctor charge to come out to your house?"

That's one of the problems with our business. You're at the customers house and he's watching you and knows how long it took. He knows it only took you fifteen minutes and he knows he can buy that outlet you installed for 45 cents at Home Depot. With auto repair shops you typically drop your car off in the morning and pick it up in the evening. You have no idea how long it took them to make the repairs.

Nice come back!

 

[SmithBuilt]

I wish everyone in my area charged for estimates. Since I do not I'd be busier than a fox in a hen house.


Therein lies the problem with charging (at least up front) for estimates. There will always be someone who does not. Once I'm in the door; I use my not so good sales skills to add more things, try to create a long term relationship with the customer so I get the next call, and maybe their neighbors will need something. All apart of getting your co name out to as many people as possible by word of mouth. Word of mouth, the best kind of advertising. So strong that many times you don't have to worry about competition.

 

[satcom]

GC's. They get free estimates, most of their jobs run more than 100 hours. The trick there is to make sure that the hours all exceed my breakeven and I try to set my goal to stick to double breakeven for them as best as I can.

That it the right way to do it, mix it up, but always meet that break even plus a profit. service only is ok if you have long term service contracts, without them you need other work.

 

[emahler]

That it the right way to do it, mix it up, but always meet that break even plus a profit. service only is ok if you have long term service contracts, without them you need other work.

or a lot of advertising...which costs a lot of money...