Articles tagged with: flat rate
In my past columns I’ve consistently beat the drum for increased compensation and fringe benefits for the service technicians and journeymen who are the most important employees in our contracting businesses. They labor very hard, and are the crucial link with customers – at least on the service side of our business. How these men and women perform their jobs can make or break our companies.
The controversy over flat rate pricing continues to amaze me. It continues to amaze me that there’s any controversy at all. For those who may not be aware of it, flat rate pricing involves offering a single, up front price before starting a repair. This contrasts with time and materials pricing where a price is given for the material, but the labor is open-ended…
Imagine going into business without enough capital even to purchase some basic instructional books. This statement tells a lot about our industry. It is open to anyone with a plumbing license- or even without one- and mechanical skills. And this is the source of our biggest problem. People enter the field without knowing a thing about business economics. They are playing a big guessing game with their prices and end up buying themselves most jobs.
The fastest way to a strong bottom line is to build the top line. While the small business owner must always watch expenses, no one can save their way to prosperity.
The surest way to build the top line is good marketing. The four P’s of marketing are product, price, place, and promotion. Over the rest of this series, we will deal with each, but will start with pricing. For service companies, pricing breaks down into four areas…
Sooner or later it happens to everyone in the business. A disgruntled customer notices the prices of parts and merchandise sold at the retail stores and complains about the big markups charged by the contractor. This is a bigger problem for time and material firms, whose prices are itemized for all to see at a glance. However, even we flat raters face it from time to time.