Service Call or Trip charge?

[TOPDAWG]

We are trying to to get our Service Plumbing department up and running and trying to get away from all the DEAD BEAT BUILDERS that seem to think our money is their money and I was wondering how you all feel about charging a trip charge/service call? Is it better to charge more per hour and a not charge a trip charge/service call? What is the average service call in your area? I have called around my area and it seems that $50.00 is the average service charge and $60.00 per hour or they state it $110.00 for the first hour and $60.00 an hour there after. Do you break down your time in 1/2 hour increments or 15 minutes? If you use a sewer machine do you charge for machine usage? Do you think it is worth paying someone $1500.00 or more to tell you what to charge someone for a job as the flat-raters do? If it seems like I'm trying to pick your brain for pricing it's because I am. I haven't done a lot of Service Plumbing in 10 years, mostly just for customers whose houses we have plumbed and I'm surprised from what I hear and read that the labor cost has only gone up about 10% to 20% in ten years while everything else (service charge) seems to have gone up 100%+

[Aaron91]

Our shop has a $60 Trip, Fuel, and Diagnostic Charge. I feel this is alil high for this area, and $45 would 'fit' alil better. Then again, the company fuel bill is over $40,000 a year.

The going rate for a T&M Plumber is around $125 an hour here.

I hope this lil bit of information helps ya out.

[aero1]

we charge a 50$ service call, does it cover your time, probably not but at least it help to reduce the shopper from the customer that is serious about getting a job done, one thing we do that helps take the edge of the customer, is the 50 is added into the repair not layered on top of it.

[rombo]

last company is was at it was 46 for the service call and 81 per hour. by the half hour

[OkieBill]

$60 for the first half hour than 60 per hour after that. I build my trip charge into the first 1/2 hour. The term "Trip Charge" is a turn off for some folks so I build it in without calling it anything:shrug: and it has worked great...

[aero1]

good point we call it a diagnostic charge.

[Service Guy]

I call it an appointment fee. I am a professional and I am paid to drive out to your house for an appointment. I give timely appointments (1/2 hour window) and most service plumbers around here charge too.

[NHMaster3015]

Before we went flat rate we we're getting a buck ten an hour. If the contractors are deadbeats they probably won't pony up no matter what you charge.

[MPMGinAL]

Im just glad to see another installer that couldn't bear teh economy "slow-down" try and jump into the service field and get a piece of the pie that us service guys have worked years to get. If you don't know how to price it you probably can't fix it. Stick to hanging pipe.

[SlimTim]

No service call, no minimum charge, no trip or fuel charge. I figure fuel and non-billable times (including travel time) into my overhead and prorate by the minute the minute I pull in the drive. I have a 25% gross profit margin (breakeven divided by .75) on direct labor, overhead and parts.
The customer feels they are paying only for what I do for them (which is true).
That being said, if I do a minor toilet tank rebuild (ballcock, supply and flapper) in 15 or 20 minutes and the price seems way to cheap (in regards to what I think the customer thinks is reasonable) I'll up it to what I feel they are expecting. They're happy, I'm a little ahead and life is good.
My breakeven cannot possible be the same as your breakeven so my rates are not important in this discussion. As long as you're figuring a decent profit figured as a percentage of the selling price then it's fair.
Alot of the companies around here will make anonymous calls to the other plumbing companies in order to find out their hourly rate. I think that's ludicrous.

[PLUMBER RICK]

4 years ago, i started to charge $20. more for the first hour. i call it a service call. it covers my drive and lost time.

i still charge for a portion of the first hour if it's less than 45 minutes.

i bill in 15 minute increments.

flat rate would only fly for new customers. not my exisiting customers.

my customers are my advertisers. what works for me, has been good.

rick.

[Masterplumb]

good point we call it a diagnostic charge.

What if there is nothing to diagnose? Like a dripping faucet.

[Masterplumb]

If you don't know how to price it you probably can't fix it. Stick to hanging pipe.

"If you dont know how to price it you probably cant fix it"

That is one of the dumbest statements I ever heard. :bash:

[ChrisConnor]

We call it a dispatch fee. It's forty nine dollars. we waive that fee if repairs are made.
Nothing gets fixed for $49.00 just a cursory examination. Taking something apart for examination cost $$$.

You know, I have notice that people will talk price on this forum, but will not talk price on other forums such as the PDL. They always say not to because of price fixing laws. I wonder why that is not a problem for RIDGID.

[ToUtahNow]

We just charged whatever the travel time one way was.

Mark

[Service Guy]

We call it a dispatch fee. It's forty nine dollars. we waive that fee if repairs are made.
Nothing gets fixed for $49.00 just a cursory examination. Taking something apart for examination cost $$$.

You know, I have notice that people will talk price on this forum, but will not talk price on other forums such as the PDL. They always say not to because of price fixing laws. I wonder why that is not a problem for RIDGID.

None of us agree about price at all, so we can't possibly price fix!:lmao::slap: Plus we are all from different parts of the world.
I for example charge higher than most guys here, and yet I am cheap compared to some other guys here, location is a big factor.

[TOPDAWG]

Im just glad to see another installer that couldn't bear teh economy "slow-down" try and jump into the service field and get a piece of the pie that us service guys have worked years to get. If you don't know how to price it you probably can't fix it. Stick to hanging pipe.

Boy let me tell you, I've been in this trade since you've been about 4 and your trying to tell me to stick to hanging pipes. Do you as a service plumber have a clue on how to plumb anything? or are you a replacement plumber? If you can take it out you can put it back in? you should thank us Pipe Hangers for giving you something to repair as if it were not for us you would be working at McDonald's flipping burgers. You have to remember one thing, we were the bakers of that PIE.

[stxrus]

i charge $75 for the service charge and $90/hr based on 1/4 hr increments.

hope that helps

steve

[TOPDAWG]

We call it a dispatch fee. It's forty nine dollars. we waive that fee if repairs are made.
Nothing gets fixed for $49.00 just a cursory examination. Taking something apart for examination cost $$$.

You know, I have notice that people will talk price on this forum, but will not talk price on other forums such as the PDL. They always say not to because of price fixing laws. I wonder why that is not a problem for RIDGID.
I'm just asking so I don't go out and under charge for something and drive the cost of service work down. I've seen it in the trades for years where fly by nights come in and under price work, Stick around for a year or so, make you lower your prices to compete and then they go out of business. This is what I am trying to avoid.

[CPlumb]

Boy let me tell you, I've been in this trade since you've been about 4 and your trying to tell me to stick to hanging pipes. Do you as a service plumber have a clue on how to plumb anything? or are you a replacement plumber? If you can take it out you can put it back in? you should thank us Pipe Hangers for giving you something to repair as if it were not for us you would be working at McDonald's flipping burgers. You have to remember one thing, we were the bakers of that PIE.


That a way TopD !! I LOVE when these young bucks TYPE TOUGH !!

From one former "hanger" to another ,,,, service work ain't no joke. It's TOUGH work also , plus all the added psychology that you HAVE to master to deal with homeowners . Check with other guys in your area ,, then try out a combination of Flat Rate / T & M ,,, see what gets the best response.

Good Luck in tough times .

CP

[Australian Plumber Josh]

Its all about how you present your charges and whether the customer gets perceived value.

As an example we used to charge as $70 service call and $90/hr.

(The surgeon who lives opposite me thought this service call was outrageous seeing i only had to cross the road.)

Now my rates are $160 first hour then $90/hr there after. People are happy that they are not paying a service call fee. Go figure, its all in the marketing.

[aero1]

What if there is nothing to diagnose? Like a dripping faucet.
in a lot of cases you could probably give advice over the phone about as well as a doctor could trying to determine based on what a person thinks is wrong with them, they dont , and you shouldnt,as ive said before everything looks the same over the phone. were not in this business to guess, the customer does not have a phd in plumbing nor did they spend the years to learn. bottom line if your in a service business and a customer calls ,you owe it to them to get your a*# out there and diagnose what ever problem they may be having, that is how you make a living. faucet dripping ok what brand, widespread or 4" center how old is it, washerless or does it have seats,point being, you cant see it 99.9% of all that call wont know, so when my phone rings and its play ball if there paying iam going.:D

[Masterplumb]

in a lot of cases you could probably give advice over the phone about as well as a doctor could trying to determine based on what a person thinks is wrong with them, they dont , and you shouldnt,as ive said before everything looks the same over the phone. were not in this business to guess, the customer does not have a phd in plumbing nor did they spend the years to learn. bottom line if your in a service business and a customer calls ,you owe it to them to get your a*# out there and diagnose what ever problem they may be having, that is how you make a living. faucet dripping ok what brand, widespread or 4" center how old is it, washerless or does it have seats,point being, you cant see it 99.9% of all that call wont know, so when my phone rings and its play ball if there paying iam going.:D

Aero1 my point was not with charging a "diagnostic" fee for being there it was in using the term "diagnostic". If you look at my last few posts you would see that I say NEVER give a price over the phone. My point was maybe a better name would be "trip charge", "service call charge" "dispatch fee" or whatever. What does it matter if a faucet is a widespread or 4" centerset if it is dripping???Never give a rate over the phone, EVER.

My service call charge is $110. I will quote you an upfront price to make the repair, if you have us do the work we waive the service call charge. If its a no heat call the $110 includes 15 minutes of diagnostic time but does not get waived.

[aero1]

Aero1 my point was not with charging a "diagnostic" fee for being there it was in using the term "diagnostic". If you look at my last few posts you would see that I say NEVER give a price over the phone. My point was maybe a better name would be "trip charge", "service call charge" "dispatch fee" or whatever. What does it matter if a faucet is a widespread or 4" centerset if it is dripping???Never give a rate over the phone, EVER.

My service call charge is $110. I will quote you an upfront price to make the repair, if you have us do the work we waive the service call charge. If its a no heat call the $110 includes 15 minutes of diagnostic time but does not get waived.
you and i are not that far off, we also try not to give a price over the phone, but there are times when its better to give something than to lose everything,i would rather lose in house then let a potential job slip away, i make no money sitting and it doesnt hurt to give a customer a ballpark price over the phone if it is presented properly, in what we do you need to find what works best for you and if you know what it takes to feed the machine each day than your better of than most, there is a ton of skill and motive in everything we do, and second place in our world sucks.