How much do you charge for a service call

[aline]

Regular Hours: $29 - $49 dispatch fee depending on how busy I am.

When I get there I look the job over and give them a price for the work upfront before doing the work. If they decline to have me do the work they pay the dispatch fee.
So they can have a bill as low as $29 if they choose to do so.

Saturday Hours 8:00 - 2:00: $99 dispatch fee.
After Hours 5:00pm - 7:00am: $139 dispatch fee.
Holidays: $199 dispatch fee.

 

[rt66electric]

Why I CHARGE WHAT I CHARGE

Why I CHARGE WHAT I CHARGE

I used to work for the "otherguy" for $20/hour. I had to do the "MADD SHUFFLE" wake up at 6:00 am get to tthe shop, shuffle tools to the service van, get 8hrs of work in 7hrs , back to the shop, shuffle tools back to private truck, hurry home, shuffle, goto side-job. Got Fired (long story, remember the boss's son wins no matter if is right or not): best thing for my well being as well. The most $ that I could bring home was $700 after taxes etc maybee $200 more for saturday O.T. Now I can charge $75 for a service call. I can make equal amount of take home pay in about half the hours,$40/hr. I Have also made over $1000/day : never could have made that in sombody else's service truck!!!!

Where is MULE

I'D rather give a person a lesser cost than spend BIG $$$ on advertising.

A happy customer is the best AD.

A framing contractor gave me good advice " good service and word of mouth is all the advertising you need"

ITS small town everybody checks up on me.

A small one horse guy in the big city--" do not make the same mistake I did, Do not put a big ad in the phonebook, I spend all my time answering it, Ican't get any work done, I'm talking to mostly idiot customers trying to get DYI advice".


off the subject But, I do not have to grovel with the boss to get time off to goto kids ball game etc.

 

[aline]

I can make equal amount of take home pay in about half the hours,$40/hr. I Have also made over $1000/day : never could have made that in sombody else's service truck!!!!

Did you make over $1,000/day or did you bill for over $1,000/day?

What's your effienency ratio for billable hours versus non-billable hours for service work?

How much time do you spend giving estimates that you don't bill for?

I had a guy, that after looking at my proposal for a service upgrade, told me he figures I must be making about a $1,000 a day. Told me it sure would be nice to make that kind of money.

I asked him how much he was paying me that day to come out and provide him with an estimate. I told him I have two more estimates to give that day that I won't get paid for either. So much for making a thousand dollars a day.

Bottom line is you need to track ALL your hours spent running your business and divide these hours by what's left over after paying ALL of your overhead expenses to find out what you're really making per hour. You may be surprised.

 

[aline]

off the subject But, I do not have to grovel with the boss to get time off to goto kids ball game etc.

You just have to grovel with the hundreds of bosses, you now have, that want their job completed now, not after your kids ball game is over.

 

[aline]

Here's an article I recommend reading.
http://forums.mikeholt.com/attachment.php?attachmentid=3103&stc=1&d=1238866529

 

[Rewire]

I asked him how much he was paying me that day to come out and provide him with an estimate. I told him I have two more estimates to give that day that I WON'T GET PAID for either. So much for making a thousand dollars a day.

Didn'T you just post that you charge a dispatch fee?

 

[emahler]

Didn'T you just post that you charge a dispatch fee?

i believe he charges them for service calls...that gets him to the house, where he can give a diagnostic/repair fee...

aline has always stated that he gives free estimates for installations...

 

[aline]

Didn'T you just post that you charge a dispatch fee?

I do charge a dispatch fee. It's was $29 at the time and would be credited towards the job if he accepts the proposal. I don't consider it paying for the estimate. It's a fee to come out. If he was paying me for the estimate it would be more than $29.

The expenses for the estimate is factored into the price of the job along with all the estimates I give and don't get.

My point to him was that I don't make a thousand dollars a day when my time spent running around giving estimates and all my other overhead expenses are factored in.

Also I do make exceptions to the dispatch fee in some cases.
Having a dispatch fee doesn't mean you have to charge it everytime.
Put free estimates in you advertising though and you'll have a hard time getting someone to pay a dispatch fee.

I usually don't charge a dispatch fee for referrals and repeat customers.

Mostly the dispatch fee is for small jobs where a homeowner want's to get ten bids on a $500 job.

Oh and by the way I didn't always have a dispatch fee. I used to be like just about everyone else and had free estimates in my advertising.
I decided it was in my best interest to change this.

I also used to bill out T&M at $45 per hour until I wised up.
Some never wise up.

 

[aline]

Add to the above post:

You see I've been on both sides of the fence and found that for me the grass is greener on this side.

I'm always trying to improve so what I do next week might be different from what I'm doing today.

 

[Rewire]

I do charge a dispatch fee. It's was $29 at the time and would be credited towards the job if he accepts the proposal. I don't consider it paying for the estimate. It's a fee to come out. If he was paying me for the estimate it would be more than $29.

The expenses for the estimate is factored into the price of the job along with all the estimates I give and don't get.

My point to him was that I don't make a thousand dollars a day when my time spent running around giving estimates and all my other overhead expenses are factored in.

Also I do make exceptions to the dispatch fee in some cases.
Having a dispatch fee doesn't mean you have to charge it everytime.
Put free estimates in you advertising though and you'll have a hard time getting someone to pay a dispatch fee.

I usually don't charge a dispatch fee for referrals and repeat customers.

Mostly the dispatch fee is for small jobs where a homeowner want's to get ten bids on a $500 job.

Oh and by the way I didn't always have a dispatch fee. I used to be like just about everyone else and had free estimates in my advertising.
I decided it was in my best interest to change this.

I also used to bill out T&M at $45 per hour until I wised up.
Some never wise up.

If you charge $29.00 to come out for an estimate then no matter how you slice it you are charging for the estimate. If you are charging $29.00 as a dispatch fee for a service call then that is what you charge to come out,we have a set $65.00 service charge for all service calls then if it is more than just resetting a GFI we give a quote to do the repairs. We get the $65.00 either way.

We have alot of repairs set up for flat rate but sometimes the tech needs to call in for a quote.Alot of our small service calls leed to bigger jobs then I go out for an estimate for which their is no extra charge.

 

[aline]

If you charge $29.00 to come out for an estimate then no matter how you slice it you are charging for the estimate.

Likewise the guy that claims to be giving free estimates is charging for the estimate as well.

No matter how you slice it the customer has to pay for estimates the only question is which customer pays for it.

The $29 was payment for me to come out. Once I'm there he is no longer paying me for my time to look the job over, make recommendations and write up a proposal.

Here we have to pay a cover charge to get into a bar. (They just changed the law so this is no longer required.)
After I get in the bartender offers me a free drink.

Does that mean he charged me for the drink because I paid a cover charge to get into the bar?

 

[aline]

if it is more than just resetting a GFI we give a quote to do the repairs. We get the $65.00 either way.

I never just reset a GFCI. Even at $65 the customer may feel taken if all you do is reset a GFCI and leave.

I pull the covers off the panels, check for loose connections and signs of overheating.
It's surprising the number of loose connections I find in panels even on new homes.
Sometimes the insulation has started to melt. I may have just saved the customer from an expensive service call later down the road.

I'll also do a quick inspection of the wiring for the home, check smoke detectors, etc.

I went on a service call where the customer was complaining about light bulbs burning out and one actually exploded. They previously had an electrician out when they lost power to some outlets. When I got there before I even quoted a price they told me how the last electrician charged them $135 and all he did is tighten one wire in the panel.

I pulled the panel cover off and found three more loose neutral wires for muti-branch circuits. I did an inspection of the rest of the home, found a lot of unsafe wiring and smoke detectors not working. I gave her a written report of my findings along with prices to make the corrections along with my invoice of $135. The invoice said the $135 would be credited towards the work if she had me do it.

I ended up doing $3500 worth of work for her.

 

[Rewire]

Likewise the guy that claims to be giving free estimates is charging for the estimate as well.

No matter how you slice it the customer has to pay for estimates the only question is which customer pays for it.

The $29 was payment for me to come out. Once I'm there he is no longer paying me for my time to look the job over, make recommendations and write up a proposal.

so some other customer is paying

My first estimate was free because I had no customers. I have been paying it forward ever sinse

 

[aline]

If you charge $29.00 to come out for an estimate then no matter how you slice it you are charging for the estimate. If you are charging $29.00 as a dispatch fee for a service call then that is what you charge to come out

If someone wants to bring some prints to my office for an estimate I don't charge the $29.

If the $29 was a charge for the estimate I would charge this even if someone brought prints to me.

 

[aline]

so some other customer is paying

My first estimate was free because I had no customers.) I have been paying it forward ever sinse

Your customer's didn't pay for the expense of the first estimate you gave?
What about the rest of your start up expenses?
I suppose they were all free too because you didn't have any customers?

 

[Rewire]

I never just reset a GFCI. Even at $65 the customer may feel taken if all you do is reset a GFCI and leave.

I pull the covers off the panels, check for loose connections and signs of overheating.
It's surprising the number of loose connections I find in panels even on new homes.
Sometimes the insulation has started to melt. I may have just saved the customer from an expensive service call later down the road.

I'll also do a quick inspection of the wiring for the home, check smoke detectors, etc.

I went on a service call where the customer was complaining about light bulbs burning out and one actually exploded. They previously had an electrician out when they lost power to some outlets. When I got there before I even quoted a price they told me how the last electrician charged them $135 and all he did is tighten one wire in the panel.

I pulled the panel cover off and found three more loose neutral wires for muti-branch circuits. I did an inspection of the rest of the home, found a lot of unsafe wiring and smoke detectors not working. I gave her a written report of my findings along with prices to make the corrections along with my invoice of $135. The invoice said the $135 would be credited towards the work if she had me do it.

I ended up doing $3500 worth of work for her.

Was your 135.00 your usual dipatch fee or were you matching the last guy.

 

[aline]

Was your 135.00 your usual dipatch fee or were you matching the last guy.

The $135 wasn't a dispatch fee. The dispatch fee was $29 and was waived because she accepted the $135 diagnosis and repair fee.

The funny thing is the $135 was what I would have charged even if I didn't know what the other guy had charged. At the time this was my minimum flat rate diagnosis and repair fee.
It was printed in my flat rate book. It was just a coincedence that it was the same as the other guys charges.

I found the loose wires right away but didn't fix them or mention them right away. I went ahead and did a quick inspection of the rest of the home and noted the problems I found.
I then gave her a price of $135 to diagnose the problem and told her it included minor repairs such as tightening loose connetions. I also gave her a list of the other problems I found with the prices to make the repairs and let her know the $135 would be credited towards the repairs if she had me do them.

At this point she could have opted to pay the $29 dispatch fee and send me away.
She accepted the $135, paid me and then sheduled to have me come back later and complete the other work. I tightened the connections in the panel and let her know what I did. I credited the $135 back after completion of the other work.

She was very happy that I let her know about the other problems she had been in a house fire when she was little.

By the way I would have tightened the loose wires in the panel before putting the cover back on even if she hadn't agreed to the $135. I wouldn't have felt comfortable leaving them loose.

Usually when I get to the customers home I don't quote a price right away. I'll pull the panel covres and do a quick inspection or evalutation of the home's wiring. Often times I'll find the problem while doing this and then I know how much to quote. It's easier to sell them on the price after they've seen how hard you've worked.

If I don't find the problem while doing this it at least gives me an idea of how long I think it will take to find the problem.

 

[Rewire]

If someone wants to bring some prints to my office for an estimate I don't charge the $29.

If the $29 was a charge for the estimate I would charge this even if someone brought prints to me.

No your just not consistant in the charge

 

[Rewire]

The $135 wasn't a dispatch fee. The dispatch fee was $29 and was waived because she accepted the $135 diagnosis and repair fee.

The funny thing is the $135 was what I would have charged even if I didn't know what the other guy had charged. At the time this was my minimum flat rate diagnosis and repair fee.
It was printed in my flat rate book. It was just a coincedence that it was the same as the other guys charges.

I found the loose wires right away but didn't fix them or mention them right away. I went ahead and did a quick inspection of the rest of the home and noted the problems I found.
I then gave her a price of $135 to diagnose the problem and told her it included minor repairs such as tightening loose connetions. I also gave her a list of the other problems I found with the prices to make the repairs and let her know the $135 would be credited towards the repairs if she had me do them.

At this point she could have opted to pay the $29 dispatch fee and send me away.
She accepted the $135, paid me and then sheduled to have me come back later and complete the other work. I tightened the connections in the panel and let her know what I did. I credited the $135 back after completion of the other work.

She was very happy that I let her know about the other problems she had been in a house fire when she was little.

By the way I would have tightened the loose wires in the panel before putting the cover back on even if she hadn't agreed to the $135. I wouldn't have felt comfortable leaving them loose.

Usually when I get to the customers home I don't quote a price right away. I'll pull the panel covres and do a quick inspection or evalutation of the home's wiring. Often times I'll find the problem while doing this and then I know how much to quote. It's easier to sell them on the price after they've seen how hard you've worked.

If I don't find the problem while doing this it at least gives me an idea of how long I think it will take to find the problem.

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?

 

[aline]

No your just not consistant in the charge

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