Announcement

Announcement Module
Collapse
No announcement yet.

How to bill T&M ?

Page Title Module
Move Remove Collapse
X
Conversation Detail Module
Collapse
  • Filter
  • Time
  • Show
Clear All
new posts

  • #76
    Re: How to bill T&M ?

    Originally posted by westcoastplumber View Post
    WOW, Adam, that must have taken along time to type out?

    That's it..
    That's all you got?



    Incredibly weak...
    Borderline Pathetic

    Are we starting up the post count competition again.



    Yee-Haw,
    Giddee Up Little Pony!!!!!

    Comment


    • #77
      Re: How to bill T&M ?

      Originally posted by Trent2
      Let me tell you it pisses me off when I buy a value meal with a milk shake and they don't discount the price of the soda that I would have normally gotten. I'll take the soda and and the shake thank you! Most people don't notice this and so the burger joint makes a couple extra bucks. I don't think it's fair practice.
      This happened to me the other day at McDonald's. I wanted a mocha instead of a soft drink, and they didn't discount the meal. No - that's not fair at all. But that's different than an onion or some pickles.

      At Wendy's, I found that if I want a single and a salad with water, it's a lot cheaper ala carte than buying a meal.

      And in flat rate, I make more money if I do more jobs at one time. But there are times that I have to be good at making it up as I go along. It's not possible to have a task for everything. The trick is to make it all come out to a reasonable amount. And the amount I'm getting is usually considerably more than what I got when I was using T&M. There are times when it's actually less, but again, you have to make the prices somewhere that the client won't fall over in a faint.

      Comment


      • #78
        Re: How to bill T&M ?

        I hardly ever quote an hourly rate. I'm not a yardman someone is hiring to rake leaves or dally around the house all day. The flat raters are right about that. Whoever named it "labor" should be shot. People have in their mind the the labor rate is what I'm taking home (I wish!)

        If someone asks my hourly rate I ask them what they need done. I tell them what that job normally costs. Theirs may be cheaper or higher but I can usually make that determination on the front end.

        I believe most people know it isn't cheap to stock a truck and have a legal business model but are also ignorant as to what those costs are. In my experience, they usually only want a general idea of what a certain job or jobs will cost them so they won't be surprised by a $500 difference.

        Oh, and I'd recommend if you do invoice your customers through the mail like I must do most of the time that you never itemize your labor and material costs. (I list every part but I don't price them). A final figure is all they need. Otherwise, their imagination will run away with them.
        "Man will do many things to get himself loved, he will do all things to get himself envied." Mark Twain

        Comment


        • #79
          Re: How to bill T&M ?

          Originally posted by SlimTim View Post
          I hardly ever quote an hourly rate. I'm not a yardman someone is hiring to rake leaves or dally around the house all day. The flat raters are right about that. Whoever named it "labor" should be shot. People have in their mind the the labor rate is what I'm taking home (I wish!)

          If someone asks my hourly rate I ask them what they need done. I tell them what that job normally costs. Theirs may be cheaper or higher but I can usually make that determination on the front end.

          I believe most people know it isn't cheap to stock a truck and have a legal business model but are also ignorant as to what those costs are. In my experience, they usually only want a general idea of what a certain job or jobs will cost them so they won't be surprised by a $500 difference.

          Oh, and I'd recommend if you do invoice your customers through the mail like I must do most of the time that you never itemize your labor and material costs. (I list every part but I don't price them). A final figure is all they need. Otherwise, their imagination will run away with them.
          Thankyou slim tim

          Comment


          • #80
            Re: How to bill T&M ?

            I do both Bid and T&M jobs. If it's new or replacement it's a bid. If it's a funky fix or big unknown it's T&M (typically with estimate). If the customer still insists on bid for something I can't be sure of how long it'll take to fix, then they get a real high bid. I explain this and sometimes lose jobs because of it but that's how I cover my butt and make sure I make at least a decent hourly wage. Below a certain hourly wage I'm better off working on my own house.

            I only have one speed either T&M or Bid: work hard and get it done right. T&M has a real bad rap because guys think they can milk the clock and use it as a training ground for green guys. That sucks for the guys just trying to hold a decent wage and do good work. Way it is.

            For blind fix it calls I'm 2 hour minimum at $75/hour plus one way drive time. Same for T&M. Material is at cost but I'm on the clock going to the store. I won't mark it up if I'm paid to go get it. Remember, I work just as hard as bid anyways so I'm in and out just the same. Just getting a check and feeding the family. Billing is done by time sheet and reciepts. Time sheet shows days, location, time in and out, and tasks performed (list of 5) and receipts are attached. That's it. Thank you Mr. Customer it's payday.

            Bids are just down payment, progress payment for balance of material as it arrives, and final payment on completion. I must say that bids are more lucrative in that I get way better material markups and can get ahead. I even bonus for early completion to my guys if they really kick ***. Work hard get paid more. Keeps them happy.

            Anyways that system keeps me busy and keeps the mortgage paid. Still a work in progress though as I've only been running the show here for about 6 years.

            Comment


            • #81
              Re: How to bill T&M ?

              I was wondering how hard this is to deal with but I found out that if I bill labor and material separate that I must charge Maryland sales tax and send it to the state. I have been charging by the job and since this billing is considered "lump sum" tax is collected when I buy material . But for you guys that do T&M how much of a pain is this to be the states tax collector?

              Comment


              • #82
                Re: How to bill T&M ?

                Wow, over three years later and you are still wrestling with this?

                I didn't know billing was so complicated, no wonder so many businesses fail in their first year.
                ---------------
                Light is faster than sound. That's why some people seem really bright until you hear them speak.
                ---------------
                “If I had my life to live over again, I'd be a plumber.” - Albert Einstein
                ---------
                "Its a table saw.... Do you know where your fingers are?"
                ---------
                sigpic http://www.helmetstohardhats.com/

                Comment


                • #83
                  Re: How to bill T&M ?

                  I no longer bill by the hour. Hard to separate your business from the others. I bill by the job. I know what I need to make to keep the lights on, and make sure I collect what I need. Billing T&M sometimes creates issues with some people when it comes time to collect. I now tell them it will be be X amount, so that there will be no surprises at the end.
                  Will Rogers Plumbing
                  Moore, Oklahoma
                  (
                  405) 323-2852

                  "Your Solution for Any Sewer and Drain Cleaning Needs"

                  "We Unclog Drains That Others Can't"



                  www.willrogersplumbing.com
                  http://willrogersplumbing.com/?page_id=8

                  "Oklahoma's Favorite Plumbers!"

                  Comment

                  Working...
                  X