Announcement Announcement Module
Collapse
No announcement yet.
Flat rate pricing Page Title Module
Move Remove Collapse
X
Conversation Detail Module
Collapse
  • Filter
  • Time
  • Show
Clear All
new posts

  • #46
    Re: Flat rate pricing

    I believe respect is due to everyone on this board including the new guys. Flat-rating is here and it is not going away anytime soon. If the shop owner is an honest man there is nothing wrong with flat-rating.

    In other words if you are using qualified plumbers (journeyman or masters license) you should be able to charge a premium rate for those techs. However, if you are charging the premium rate you should base your man hour rates on how much time it takes a qualified plumber to do the job.

    Back in the early 90s I had the opportunity to sit with one of the originators of flat rate plumbing during a National PHCC Convention. When I asked how he could justify the rates he was charging he explained what I considered his scam. He would charge a service call to get to the house. His plumber would then give his inflated estimate but offer a discount of the service call charge. Since he was already in the house he generally got the job.

    To me this was just plain wrong but I was intrigued so I continued to question him. When asked about repeat business he told me his plumbers would leave a 10% coupon with the owner when he left the house and if the owner was DUMB (his words not mine) enough he would rip them off again. And so flat rating was born.

    This business grew to over 200 trucks and a bunch of franchises before he went out of business. As many of you may know I have worked as an Expert Witness for Construction Litigation specializing in Plumbing & Mechanical since 1988. A few years ago I represented an equipment operator who had been hired by the above company.

    Because the above companies Liability Insurance was not solvent, the California Insurance Guarantee Association had to step in to defend the plumbing company. The company had done a horrible job on this house and caused tens of thousands of dollars in damage while making an illegal repair. Because of California Law my contractor had to pick up the entire cost of the repair and all he did was operate a concrete pump.

    I guess the number of trucks you have does not mean that much after all.

    Mark
    "Somewhere a Village is Missing Twelve Idiots!" - Casey Anthony

    I never lost a cent on the jobs I didn't get!

    Comment


    • #47
      Re: Flat rate pricing

      This is the last I"ll say on this subject. If you look at each post you will see that I never attacked Rick until he accused me of ripping people off and insulted my intelligence. I can see that Rick is very experienced and means well. However that does not give him the right to belittle or accuse anyone of wrong doing. If I have offended anyone I'm sorry.
      THE GLASS IS ALWAYS HALF FULL

      Comment


      • #48
        Re: Flat rate pricing

        Originally posted by Crappy days View Post
        I, ve been in business 4 1/2 years advertised once in yellow book ,small add. Also once in local paper 10 words. 99.9 percent referal. I do alot of resturant and property manangment wich will still be t&m. Rick I don't care about your shop or what you have. And will see where I'm at when I'm your age propbably at my vacation home on the river , watching old drunks make fools of them selfs.
        I'm curious, why would you bill differently for property management and restaurants?

        Mark
        "Somewhere a Village is Missing Twelve Idiots!" - Casey Anthony

        I never lost a cent on the jobs I didn't get!

        Comment


        • #49
          Re: Flat rate pricing

          all he did was to use your own words and numbers against you
          9/11/01, never forget.

          Comment


          • #50
            Re: Flat rate pricing

            Crappy,

            Cool your jets this is only an Internet site. We can all get a little too excited about our passions. Do not take it personal as Rick would still be the first one to help you in a pinch. I believe it is okay for us to agree to disagree about flat-rating.

            Next month a bunch of us will be meeting in Long Beach for the PHCC Trade Show. If you have a chance you should try to meet us.

            Mark
            "Somewhere a Village is Missing Twelve Idiots!" - Casey Anthony

            I never lost a cent on the jobs I didn't get!

            Comment

            Working...
            X