residential area > flate rate vs hourly rate

[jute]

I'm in SO CAL, My main customer is a property management company. I have been doing work for them about 6 years and my Dad had been doing work for them aprox 15 to 18 years before he passed away almost 4 years ago. This type of work has always been fairly stead but the problem is that they are my main customer and when they slow down, I slow way down. So I wanted to get more eggs in my basket and last year I started setting up the van for doing more residential and so I could do invoices/quotes in the field. I feel I'm to that stage except for accepting credit cards... (suggestions?) Starting Oct, 1st I'm relocating (about 8mi down the freeway from where I'm currently located) to an area where I think I'd be able to break into residential and generate a good clientale of residential customers in a "high dollar" community. My question is what the best way to do this is...) flat rate with direct mailers saying we are now serving and offer upfront pricing and charge a dispatch/trip fee and ?? My other option is to charge $?? to show up and include first hour and $?? per hour after. I am charging for Service van, jouney man and apprentice. I'd also like to know what some of you are charging for 24hr emergency sevices?? Sliding scale of some sort, depending on time of day/night and distance...Thanks, JB

 

[Buck Parrish]

I'm in SO CAL, My main customer is a property management

I too, had a main customer that was a property management co. I made real good money with service upgrades. Because I would not charge by the hour on the upgrades. But the hourly work was killing me. I would be with a different customer wiring a new home and have to leave to go do a service call. (Because they used me exclusively) I fought with the ideal and eventually I cut the management co. loose. So far I have always been able to stay busy even with out them. In retrospect I wish I would have kept them and just put an other van on the road. One for all hourly and service and one for flat rate and new work.
If you leave them. Time it with an ad in the phone book.
I could guess So Cal. electricians are charging between $80. - $ 140. for the first hour.
As far as distance goes. If you charge them extra chances are they would call an electrician that is closer to them. If I need the work I generally try to act like I am practically their neighbor.
With the GPS I can say, I don't need directions. I know where they are and what time I will be there.
Good luck, ...

 

[jute]

I too, had a main customer that was a property management co. I made real good money with service upgrades. Because I would not charge by the hour on the upgrades. But the hourly work was killing me. I would be with a different customer wiring a new home and have to leave to go do a service call. (Because they used me exclusively) I fought with the ideal and eventually I cut the management co. loose.
This is where I'd Like to be..

So far I have always been able to stay busy even with out them. In retrospect I wish I would have kept them and just put an other van on the road. One for all hourly and service and one for flat rate and new work.

I agree, I think I would want to keep the property management co and probably use T&M and on the residential use a flat rate with dispatch/trip fee plus??

If you leave them. Time it with an ad in the phone book.


I could guess So Cal. electricians are charging between $80. - $ 140. for the first hour.
I'd like to raise rates on T&M, I usually have an apprentice so I'd charge for service van and 2 men... (journeyman and apprentice)


As far as distance goes. If you charge them extra chances are they would call an electrician that is closer to them. If I need the work I generally try to act like I am practically their neighbor.
With the GPS I can say, I don't need directions. I know where they are and what time I will be there.Good luck, ...

I had GPS put on my phone over a year ago and I know it's saved hundreds not to mention time and gas....Thanks, JB

 

[peter d]

It may also help to identify which part of SoCal you are in, since SoCal encompasses everything from the biggest cities in the US to uninhabited desert, and almost everything in between.

 

[jute]

It may also help to identify which part of SoCal you are in, since SoCal encompasses everything from the biggest cities in the US to uninhabited desert, and almost everything in between.

I'm in Orange County, Anaheim Hills, Fullerton, La Habra and surrounding areas I was just in Glendale area last wek and a couple months ago I was in Redlands...Thanks, JB

 

[Sparky555]

I wouldn't personally advertise my rates unless they were the lowest, like "We do $500 service upgrades", or "Free Estimates". I advertise my superior services. Flat rate is the only way to do residential service IMO. It's a pricey business & the rate would be a shocker to the average hourly-working citizen. California might be in the $150-200/hour range. You're going to spend a lot of time in traffic, aren't you? Credit cards are a breeze. Get a merchant, get something to swipe a card & advertise it.

 

[peter d]

I'm in Orange County, Anaheim Hills, Fullerton, La Habra and surrounding areas I was just in Glendale area last wek and a couple months ago I was in Redlands...Thanks, JB

OC...not exactly a low cost area. Your rates should certainly reflect that.

 

[jute]

I wouldn't personally advertise my rates unless they were the lowest, like "We do $500 service upgrades", or "Free Estimates". I advertise my superior services. Flat rate is the only way to do residential service IMO. It's a pricey business & the rate would be a shocker to the average hourly-working citizen. California might be in the $150-200/hour range. You're going to spend a lot of time in traffic, aren't you? Credit cards are a breeze. Get a merchant, get something to swipe a card & advertise it.

I agree and I've been thinking about flat rate pricing for residential, what is the most used, best, user friendly flat rate book offered out there?? I'm also very intersted in labor units... would this be part of the Flat rate book or is there a book on "Labor Units only??

As far as Credit Cards, is one used more than others? If I accepted Visa and Mastercard, is each one a different fee? Is it a charge per swipe no matter which credit card/merchant is used or a monthly charge for each merchant/credit card I decided to use plus a per swipe charge? Any help is appreciated...Thanks, JB

 

[satcom]

I agree and I've been thinking about flat rate pricing for residential, what is the most used, best, user friendly flat rate book offered out there??

The book you build yourself, is the most accurate, keeping time, and material records of actual jobs over a long period of time produces the best results, some of the books on the market, are nothing more then a good guess.

Tracking your own labor and material, and operating costs, will give you on target pricing.

Remenber the book is only a guide, you still have to estimate every job using the actuals information and your skills, there is no book you can turn a page to and come up with a price.

 

[jmsbrush]

The book you build yourself, is the most accurate, keeping time, and material records of actual jobs over a long period of time produces the best results, some of the books on the market, are nothing more then a good guess.

Tracking your own labor and material, and operating costs, will give you on target pricing.

Remenber the book is only a guide, you still have to estimate every job using the actuals information and your skills, there is no book you can turn a page to and come up with a price.

Hey Satcom, I agree and disagree. Nothing is better than time and experience. I agree. If you are new to the contracting business. Then the flat rate is good because it gives you an Idea what to charge. You can make a good profit as well. There are a few out there that are pretty good, but like anything they cost money. So far and I'll keep my fingers crossed. I have always made money with flat rate. I always check my flat rate with other numbers and labor units from my programs and books.
How are you feeling Satcom?

 

[jute]

Hey Satcom, I agree and disagree. Nothing is better than time and experience. I agree. If you are new to the contracting business. Then the flat rate is good because it gives you an Idea what to charge. You can make a good profit as well. There are a few out there that are pretty good, but like anything they cost money. So far and I'll keep my fingers crossed. I have always made money with flat rate. I always check my flat rate with other numbers and labor units from my programs and books.
How are you feeling Satcom?

I agree that nothing is better than experience...I would use this to doublecheck my prices and more importantly out in the field where they want a "Ballpark figure" Thanks for all the help...JB

 

[emahler]

experience is great...but what happens when you grow and have employees? how do you put your experience in their heads? that's where a flat rate MANUAL really starts to be important and pay dividends...so, whatever system you use, personalize it for you and your company. This way when you hire people, they can use your experience in a book form