Standard Rates & Scope Brochure

[bradleyelectric]

A most excellent point.

I've heard from some contractors that piece rate and they get a very good rate at that. They talk about developing relationships with customers and keeping the same technicians in certain areas so they end up with the same customers when the customer calls for more service. I used to have a technician that was very slow but very meticulous. He was very personable. He would bring a pretty penny for his service and customers often prasied him and would ask for him when they would call for additional work.

 

[growler]

But, have you ever seen two for the same customer?

I don't get to look at all that many of their invoices. It's normally when a customer wishes to show me the bill ( from others ) and complain. Yes, they probably lost this customer. But there is something to consider here, the company that I was refering to is one of the largest and most successful service contractors in the country so they must be doing something right. I would assume they do get repeat business. They built a customer base that is willing to pay their rates for the service that they provide.

Some of the techs. don't like the pressure of having to sell these high priced jobs to customers but the company is able to find people that can sell.

I will admit that I'm old school. I have learned a lot by watching how some of the newer companies operate. Many of the companies that I thought would price themselves out of business did not do so. Many people are willing to pay flat rate just to know in advance what the bill is going to be. With flat rate it is possible to make much more than the hourly rate ( if you are good & fast ). :wink: There are people that can sell ice to an Eskimo.

 

[bradleyelectric]

someone told me a long time ago that a businesses success depends on marketing. I have found that perception is much more important than price. Usually people will pay very well for service if they are under the impression that it is what it costs to have the service performed. That said I did run into someone last week that told me that they could have had a job done for half what I wanted to do it. They told me that they were licensed electricians and 1 was a large company when I ask who. I suspect that the large company was someone that does work for the town and works out of old pickups with caps and who knows who the other may have been. Someone that doesn't run a profitable business I'm sure.