new to the service part

[jaytip]

Just wondering if I could get a little mentoring from someone in the plumbing service part of the business. New construction down :confused:. I just bought the K-60(haven't received it yet). I was wondering what amount to charge for a service call. I know its all about competition and demand, but here it is. No competition and I'm not sure about demand. The average income is around 30,000 and I'm available to about 20,000 customers. Any good advice? Thanks

[Service Guy]

Just wondering if I could get a little mentoring from someone in the plumbing service part of the business. New construction down :confused:. I just bought the K-60(haven't received it yet). I was wondering what amount to charge for a service call. I know its all about competition and demand, but here it is. No competition and I'm not sure about demand. The average income is around 30,000 and I'm available to about 20,000 customers. Any good advice? Thanks

Don't price that way.:smack-head: You have to start by figuring your expenses. Truck expenses, phone service, secretary?, advertising, business cards, sewer-cleaning equipment, etc, etc. Also figure in insurance and you salary. Then figure you will only be billing out about 4-5 hours/day on average.
You have to charge based on operating expenses.

[PLUMBER RICK]

Just wondering if I could get a little mentoring from someone in the plumbing service part of the business. New construction down :confused:. I just bought the K-60(haven't received it yet). I was wondering what amount to charge for a service call. I know its all about competition and demand, but here it is. No competition and I'm not sure about demand. The average income is around 30,000 and I'm available to about 20,000 customers. Any good advice? Thanks


welcome to the forum and congrats on the k-60. i know you'll love it:D

the area you're working is not a high income town. if you want to succeed with the locals, you have to keep your prices in line with their income level.

someone earning $600 a week is not going to pay a plumber $100 an hour.

what amazes me is i'm one of the least expensive guys here ($85 an hour) working in one of the most expensive real estate markets in the country.

typical houses i work in start at 1 million plus.

so i guess i can justify raising my prices.

but at the same time, if you want to work in the area you've mentioned, you'll have to adjust your prices to a level that the area can bear.

i would think somewhere around $45 an hour would be acceptable.

same goes with flat rate prices. it all has to be adjusted to the market you work.

too high and you'll sit at home with that new k-60. too low and you'll never be able to buy a seesnake. just right and you'll be busy everyday and make a good living.

so the answer is in your lap.

this is going to get interesting to hear the responses.

good luck and keep us posted.

rick.

[haycad]

service guy and rick both are correct. its not how much you charge its what your profit margin is if you want to service a lower income area only, you need to keep your cost down so you can afford to run a business on a lower income.

[Service Guy]

service guy and rick both are correct. its not how much you charge its what your profit margin is if you want to service a lower income area only, you need to keep your cost down so you can afford to run a business on a lower income.

:way-to-go:

Excellent point.

[jrsaltz]

I have just gone through this process again with the addition of new equipment and service range. I can not stress enough how important it is to follow what the others have said here. I am sure many of them have done this over the years. It seems there are always adjustments that have to be made. Many service companies around here are adding a fuel surcharge to the call to compensate for high fuel prices. Diesel is over $4.00 a gallon around here:mad:.

Get out your pencil and start scratching down every expense that you can think of from oil changes for the service vehicles, maintenance for your equipment, fuel, insurances needed, etc.

It really starts to add up and if you can not cover all of that, and still bring home enough to cover the needs you have to meet personally it may be necessary to revisit how you want to charge. You may also need to market your business to generate more work.

Just my thoughts. Good luck with everything and don't be afraid to pick the brains of these guys.....they have seen it all.

[Gene Bickford]

Don't cut yourself too short based on their income. Average in my area is $26000-$32000. You'd be surprised how quick someone can come up with the money when their basement is full of s%*#.