How much do you charge for a service call

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Rewire

Senior Member
Sure I am.
I consistantly never charge the dispatch fee for someone to bring prints to me for an estimate.
I would consistantly never charge a dispatch fee if they wanted to bring their house to me for an estimate either. :)

I'll stand by my theory that the fee is for coming out not for the estimate.

What I really need to do is charge $99.99 for the estimate and call it an in home consultation fee like the Geek Squad. :) http://www.geeksquad.com/services/tvVideo/category.aspx?id=983

I think I will stick to calling it a free estimate it is less confusing.
 

aline

Senior Member
Location
Utah
I am trying to wrap my brain around thisso bear with me,

a customer calls and says they have a bad switch you say that will be $29.00 dispatch fee

When you get to the door before you walk in you tell them that will be another $135.00 for you to look at it? But Ill credit the $29.00 back?
We don't quote the price until after completing the evaluation of the electrical system.

Customer: How much is it to have an electrician come out? I have a bad switch.

Dispatcher: We only charge a dispatch service fee of $29 to send an electrician out. He will evaluate your entire electrical system, evaluate the job you requested and determine the price. This way you'll know the exact price before any work is started. Everything will be put in writing and all work is guaranteed for five years. If you accept the price and approve the work while the electrician is there the $29 dispatch fee will be waived.


What if they object to the dispatch fee?

Dispatcher Response:

Our dispatch fee includes our on-time guarantee. If our electricians don't arrive within the 2-hour window of your scheduled appointment the dispatch fee is wavied.

Our dispatch fee includes a safety analysis of your entire electrical system. We'll let you know of any unsafe conditions we find. This way you'll know how safe your home is. Some companies charge hundreds of dollars for this service but we include it in our dispatch fee.
 

emahler

Senior Member
Erik,
I believe you are taking my post out of context,raising or lowering a price was not the issue try reading for comprehension.

then please explain...my reading comprehension is pretty good, and I've even read the last few pages of this thread 3 times...and I guess I just don't understand the point of that post of yours...
 

Rewire

Senior Member
then please explain...my reading comprehension is pretty good, and I've even read the last few pages of this thread 3 times...and I guess I just don't understand the point of that post of yours...
Erik,
It was a problem with semantics.Not being consistant with a charge does not change the nature of the charge
 

emahler

Senior Member
Erik,
It was a problem with semantics.Not being consistant with a charge does not change the nature of the charge

sorry...i'm not following....how does the word "consistent" even come close to being confused with whatever you are trying to talk yourself out of?

consistent is a pretty straightforward word...
marked by harmony, regularity, or steady continuity : free from variation or contradiction

there is nothing aline said regarding a trip charge that the word 'consistent' could apply to, except for the fact that he decides when to use it and when not to..so, he doesn't consistently charge the trip charge....which he admits to....

so, i disagree with you here...it's not a problem with semantics,
the language used (as in advertising or political propaganda) to achieve a desired effect on an audience especially through the use of words with novel or dual meanings
in terms of his inconsistent use of this charge...

the semantics comes into play in that you honestly believe that you offer free estimates...
 

Rewire

Senior Member
sorry...i'm not following....how does the word "consistent" even come close to being confused with whatever you are trying to talk yourself out of?

consistent is a pretty straightforward word...


there is nothing aline said regarding a trip charge that the word 'consistent' could apply to, except for the fact that he decides when to use it and when not to..so, he doesn't consistently charge the trip charge....which he admits to....

so, i disagree with you here...it's not a problem with semantics,

in terms of his inconsistent use of this charge...

the semantics comes into play in that you honestly believe that you offer free estimates...

A rose by any other name...
 

aline

Senior Member
Location
Utah
On another note.
I still use T&M as well.
So I'm not consitent with using flat rate pricing either.
I just prefer an upfront price over T&M but sometimes it's not practical or sometimes the customer gives me the choice to either do it T&M or don't do it at all.

I can still make money with T&M but find I can make more with a flat rate and have fewer disputes in the end. There's nothing that says you have to consistantly use one method.
 

emahler

Senior Member
On another note.
I still use T&M as well.
So I'm not consitent with using flat rate pricing either.
I just prefer an upfront price over T&M but sometimes it's not practical or sometimes the customer gives me the choice to either do it T&M or don't do it at all.

I can still make money with T&M but find I can make more with a flat rate and have fewer disputes in the end. There's nothing that says you have to consistantly use one method.

i don't know....let me check the book or google and get back to you;)
 

aline

Senior Member
Location
Utah
Just wanted to add that when I do use T&M it's for commercial, government and industrial accounts. I still try to give them fixed bids as much as possible though.
Also there's nothing that says you can't have more than one hourly rate for T&M. You can have a higher hourly rate for service calls and small jobs and a lower hourly rate for larger projects.
With the government they want labor and materials broken out seperately even with a fixed bid.
 
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aline

Senior Member
Location
Utah
Have you guys seen the sliding scale for material markup thats been floating around on these forums?

I've wondered about having some kind of sliding scale for an hourly labor rate.
You would have a minimum hourly rate and a maximum hourly rate.
The minimum hourly rate would be for large jobs. The maximum hourly rate would be for a 1 to 2 hour service call.
The hourly rate would fall somewhere in this range depending on the estimated hours of the job.

Right now I have a different hourly rate for service work than the hourly rate I use for larger jobs. It's just that it's either the one rate or the other so I have to determine when I consider it service work versus a larger job.

At what point do I kick in the lower hourly rate?
8hrs?
16hrs?
40hrs?
80hrs?

I'm sure a sliding scale for labor based on the number of hours the job will take is crazy idea and is probably too complicated but I have wondered about whether or not it would work.

My other thought was if a customer knows the more work they have done the lower the hourly rate will be they may have you do more work. When the customer asks what's your hourly rate you can say your hourly rate is based on a sliding scale according to the estimated time the job will take. The smaller the job the higher the hourly rate. The larger the job the lower the hourly rate.
 

rt66electric

Senior Member
Location
Oklahoma
thanks for the info

thanks for the info


BOY that article "SINGS" to me.

ALL of the Info seems true except that the labor rates and such have gone up in 10 yrs.

In the long run, I belive my lifestyle (family time) is better when I'm working solo. When the kids get out of high school it may be time to reconsider.

If thought the market could bear it I would raise my prices.
I have talked with the other local contractors at the supply house house and we have concluded not to take our prices any lower.

Some customers are aghast at my resonable prices and others will never be happy if ya gave it to them for free with asmile.

A good day goes like this --drop of boys at elamentary skool, eat breakfast, do service calls etc for 6hrs, pick up boys, :smile:

my billable ratio is usually-- It takes me 8hrs to get 6hrs billable

I have also put a ad in the local paper --not many takers, but a few crank calls.

One $$ advantage that I've noticed in working for yourself is tax laws--more things are deductable. It seems that I don't make as much on paper, but, I have more time on hand and $$ in my pocket.
 
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