The anatomy of a service call.

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aline said:
I've been told this very thing. Why should I pay you $59 just to come out and look at it when I can get 5 other contractors to come out for free?
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This does present a problem. Like Emaler said one of the problems is that homeowners are wanting 5 prices for a $400 job.
If we do not charge a dispatch fee, trip charge service call fee what ever we want to call it, then the price of actually doing the receptacle change would have to be higher to cover cost.
Now the contractor who's only charging $45.00 without the dipatch fee. Those are the ones who are going to be in trouble
 
jmsbrush said:
As a home owner, IF a contractor told me there was a 2 hour minimum charge to come out, I do not think I would be to happy!
When you say 2 hour minimum, that means your time and material. If you charge $100.00 an hour. Then I was just charged $200.00 for a 10 minute repair? That's if, its just a simple receptacle change. That means your labor rate is $1200.00 an hour.
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That's using HO logic. There's more time involved that the time spent at the home. I gotta drive there.......
 
jmsbrush said:
This does present a problem. Like Emaler said one of the problems is that homeowners are wanting 5 prices for a $400 job.
If we do not charge a dispatch fee, trip charge service call fee what ever we want to call it, then the price of actually doing the receptacle change would have to be higher to cover cost.
Now the contractor who's only charging $45.00 without the dipatch fee. Those are the ones who are going to be in trouble
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They can get their 5 prices for that $400 job from somebody else...IMO I want a customer who can trust me. If he doesnt trust me, then I dont trust him and therefore dont want to work for him. I understand large sums of money that's different... but a HO getting multiple estimates for something simple is silly, do they not have any social life? anyone else about a recomendation?
 
480sparky said:
That's using HO logic. There's more time involved that the time spent at the home. I gotta drive there.......
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that's the trick...pricing the project with contractor knowledge, but presenting it using HO logic...do that consistently, and you'll actually make a good living doing this stuff...
 
Mule said:
They can get their 5 prices for that $400 job from somebody else...IMO I want a customer who can trust me. If he doesnt trust me, then I dont trust him and therefore dont want to work for him. I understand large sums of money that's different... but a HO getting multiple estimates for something simple is silly, do they not have any social life? anyone else about a recomendation?
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easy to say as a 1 truck operation that handles multiple aspects of the electrical spectrum. Not as easy to say when you build up a 5-8-10 truck operation doing service work, and the call comes in during the slow time of the year...
 
emahler said:
easy to say as a 1 truck operation that handles multiple aspects of the electrical spectrum. Not as easy to say when you build up a 5-8-10 truck operation doing service work, and the call comes in during the slow time of the year...
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I understand......................
 
Minuteman said:
So, how do you do it?
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By starting with: I can give you an estimate over the phone. If I have to come there, that's a service call for troubleshooting.

I explain that a service call is $150 for the first hour, and $100 for each additional hour. (I might pro-rate if it comes up.)
 
LarryFine said:
By starting with: I can give you an estimate over the phone. If I have to come there, that's a service call for troubleshooting.

I explain that a service call is $150 for the first hour, and $100 for each additional hour. (I might pro-rate if it comes up.)
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Except for a price range phone estimates are worthless for the customer. I can almost guarantee some contractor will quote a rediculously low price over the phone just to get the customer to have them come out. When he gets there he gives them the real price and it's a lot higher than the phone estimate.

I had a lady call me and wanted a price to relocate some electrical in a wall she was tearing out. I told her there would be a small dispatch fee for me to come out and give an estimate for the work and if she approved the work while I was there the dispatch fee would be waived.

She didn't want to pay a dispatch fee for me to come out and insisted on me giving her some kind of idea on how much it would cost. I told her it sounds like it would be at least $200. She then told me the reason she wanted to know was because another electrician told her it would be $100 over the phone but when he got out there he wanted more than $200 to do the work. She refused to have him do the work and sent him away without paying him anything for coming out because he told her he would come out for free and give her an estimate.

I have a hard enough time getting people to pay me a small dispatch fee of say $29 to come out and give them an estimate when there are many contractors in my area willing to do it for free. If I tried to charge $150 to go out and give estimates I don't think I would get any takers.

I have never been able to win quoting prices over the phone. They just keep calling until they find someone who quotes a lower price.
 
jmsbrush said:
If you charge $100.00 an hour. Then I was just charged $200.00 for a 10 minute repair? That's if, its just a simple receptacle change. That means your labor rate is $1200.00 an hour.
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Who charges $100 an hour, that's outrageous, I only charge $10 an hour which I consider it quite reasonable. There is a small catch.

We refuse to accept payment in an of that funny money printed up by the US Mint as it has no value. We accept payment only in Gold Double Eagles and any $20 gold piece minted between 1849 and 1907 will be acceptable. Yes folks we have the cheapest prices in town by only accepting real money with real value. :grin::grin:
 
aline said:
I have a hard enough time getting people to pay me a small dispatch fee of say $29 to come out and give them an estimate when there are many contractors in my area willing to do it for free. If I tried to charge $150 to go out and give estimates I don't think I would get any takers.
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What I meant is that, if I get a call about an inoperative receptacle, for example, there's no reason to drive there unless it's already agreed that I will be doing the work.

I give free on-site estimates for new work if it's a real job. I can give troubleshooting estimates over the phone, by quoting my hourly rate: $150 1st hr, $100 each addtl.

Troubleshooting is never free, and work has to be done to determine the cause of the malfunction. There's no reason to drive there to do what I can do free on the phone.
 
LarryFine said:
There's no reason to drive there to do what I can do free on the phone.
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not necessarily true...when you quote over the phone, you are just a number...you can't differentiate yourself by anything but your price...

get on site, then you can sell...
 
emahler said:
not necessarily true...when you quote over the phone, you are just a number...you can't differentiate yourself by anything but your price...

get on site, then you can sell...
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If I can't sell them on having me be the one to troubleshoot their dilemma, I don't want to drive there free. Sometimes, after I ask a few questions, I can diagnose the problem on the phone.

I also am willing to help a caller solve their own problem if possible. They always remember me as the guy who was more interested in helping them than just being interested in their money.
 
LarryFine said:
If I can't sell them on having me be the one to troubleshoot their dilemma, I don't want to drive there free. Sometimes, after I ask a few questions, I can diagnose the problem on the phone.

I also am willing to help a caller solve their own problem if possible. They always remember me as the guy who was more interested in helping them than just being interested in their money.
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this works well when you are the guy who answers the phone, as well as goes on the call...when you have CSR's and technicians...not so well
 
emahler said:
this works well when you are the guy who answers the phone, as well as goes on the call...
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That I usually am. If not, I share the results of my preliminary efforts with whomever I will be sending.

But, yes, I always answer the phone. That's why I have a Borg impla..., I mean, a BlueTooth earpiece.
 
LarryFine said:
If I can't sell them on having me be the one to troubleshoot their dilemma, I don't want to drive there free. Sometimes, after I ask a few questions, I can diagnose the problem on the phone.

I also am willing to help a caller solve their own problem if possible. They always remember me as the guy who was more interested in helping them than just being interested in their money.
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I went to a remodel and found the HO owned a bunch of slums just like this one. He had me go all over the place pointing out problems and offering solutions. Then I had to explain the ramifications of the 08 Code. After about 2 hours I said good bye and haven't heard from him in over two months.

I'm still learning!
 
ohm said:
I went to a remodel and found the HO owned a bunch of slums just like this one. He had me go all over the place pointing out problems and offering solutions. Then I had to explain the ramifications of the 08 Code. After about 2 hours I said good bye and haven't heard from him in over two months.
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If I went on a free-estimate call and was shown that much to do, I'd have to invoke a charge (that would include a written report if desired - and paid for) that could be credited toward the work if awarded to me.

That's work, not estimating. If the resuest was refused, I'd say "thanks" and be on my way.

I'm still learning!
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When that stops, your troubles are just beginning. :wink:
 
LarryFine said:
If I went on a free-estimate call and was shown that much to do, I'd have to invoke a charge (that would include a written report if desired - and paid for) that could be credited toward the work if awarded to me.

That's work, not estimating. If the resuest was refused, I'd say "thanks" and be on my way.

When that stops, your troubles are just beginning. :wink:
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As soon as I dug out a contract the meeting was declared over. I should have done that after 10 min.!
 
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