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Pricing structure for your service call

6K views 65 replies 12 participants last post by  Going_Commando 
#1 ·
What makes sense about how you structure your service call rates? Dispatch fee? Flat rate fee which includes a certain amount of time? Per hour? .... What works for you and why
 
#3 ·
My plan is simple. I'm sure I will change it along the way, but what I do now is the following:

I have a $99 promotion for troubleshooting. I know it's cheap, but it's a loss leader since it usually leads to more work. What is included in that is the time it takes to find the customer's electrical problem. I also include the labor on a small repair (loose wire, bad breaker or device). If it's a larger repair, then I give an estimate for that repair in addition to the $99 troubleshooting fee. That extra repair fee is where I make up the money on the $99 fee. Also, even if the job doesn't require a larger repair, I still put myself in front of a customer and offered them other services. I will frequently get generator connectors, surge suppressors, dedicated receptacles for window AC's, etc. from the $99 troubleshooting call. I've gotten a few service upgrades as well, so it's definitely paid off.

In addition to calls for troubleshooting problems, I get calls to give estimates for work. I always do these free since I could use more business. I go out, give the estimate, and that's just about it. I include time for the ride, the supply house, the building department, the 10-15 minute wait at the bank, the paperwork, and anything else I may have to do in all estimates. This way I have very little unbilled time.

I price based off of both flat rate and old fashion time multiplied by an hourly rate. I'm still honing in my flat rate system so sometimes it needs to be adjusted. I'm pretty good at looking at something and coming up with a relatively accurate estimate of how long it will take to complete it.
 
#10 ·
Man, your cheap. what if it takes you all day to find the problem? Do you work all day for $99? Don't you like billing for all your time?

:laughing:;)
 
#14 ·
We have a $69.00 dispatch fee. This gets the tech to the door with the tools and material to do the job
We then have a troubleshooting fee of $197.00 this is to find the problem it does not matter how long . 99% of the troubleshoots are under 1 hour .
We then use a ten level pricing sheet that involves one or more levels to complete the repair.
This is simply the price structure we spend a great deal of time training our techs in how to present the value of our service and how to present our straightforward pricing.
 
#18 ·
rewire said:
We have a $69.00 dispatch fee. This gets the tech to the door with the tools and material to do the job
We then have a troubleshooting fee of $197.00 this is to find the problem it does not matter how long . 99% of the troubleshoots are under 1 hour .
We then use a ten level pricing sheet that involves one or more levels to complete the repair.
This is simply the price structure we spend a great deal of time training our techs in how to present the value of our service and how to present our straightforward pricing.
Could we see the pricing sheet? I'm very curious
 
#19 ·
I have seen it done a couple ways.

49 or 39 dollar dispatch fee. Is waived if you do a repair or job. Means estimates are 39. When you arrive on site there is a troubleshooting fee. This fee is determined by different levels of difficulty. Lowest level is 180. it can include a switch or receptacle, splice of loose wire, ect. (easy stuff).

If job becomes bigger you can waive dispatch fee only if they go with the large repair.

Or.

You can just set a rate for troubleshooting. I use to charge 176 for these calls and did not make any money. you really need to leave with 225 for a simple in and out service call to come out ahead. After finding problem you then flat rate the rest of the install. if they say no you leave with the 176.

Thats the part they baulk at. The higher up front price. even though the lower up front price cost them more in the end. Just something to think about.

A $99 service call is a waste of time IMO :)
 
#21 ·
A $99 service call is a waste of time IMO :)
I thought so too, and for a while I was against it. But I have come to like it.

Well over half of the $99 promotions I do either:

A) Lead to a larger repair where I can make the money up.
B) lead to me selling another service where I can make the money up.
C) put me in the position to be called back later by this customer for more work.

Out of the jobs that ended after the $99, they were all pretty easy jobs and I am not so busy that they push away other work. If I was booked solid that promotion would be gone. For now, it seems to be a good way to get business.
 
#34 ·
rewire said:
I have not done a house in three years. And yes all my guys are neat and clean . /and yes this is what we not only charge this is what we collect.
Liar.

If your guys are neat and clean and you have this dress code you kept talking about explain the picture on your website.
 
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#41 ·
Liar.

If your guys are neat and clean and you have this dress code you kept talking about explain the picture on your website.
We are in uniform shirts in this photoWe had just gotten the new logo . It was when we were deciding between blue jeans and kakis. We now are in kakis and will update the photo so you will be able to unbunch your panties.
 
#42 ·
SVT CAMR said:
Whether he does it or not does not matter.
IMO it is the only way a service company can survive. There is a model company here that does this. I decided to call them one day right before the titanic sank. They said $39 gets a licensed electrician to your door. Took my name and address phone number. Wanted to swipe a card to secure my time slot. Did not even mention that when they arrive it will be an extra charge for troubleshooting. They are very busy around here. Plumbing-heating-electrical.
So just to show up a take a look it's well over 200. I'm sure the devise is not free. They have the worst reviews. :eek: Yet I see them everywhere. Go figure.
But he didn't survive.

He went bankrupt, put the business in his wife's name.
 
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#44 ·
rewire said:
We are in uniform shirts in this photoWe had just gotten the new logo . It was when we were deciding between blue jeans and kakis. We now are in kakis and will update the photo so you will be able to unbunch your panties.
All that talk about no sneakers, polished boots, clean pants.....looks like a bunch of lies. What a surprise.
 
#46 ·
rewire said:
Did you spend all day on the forum again?:no:
No I was working.

Someone pmed me the link to your mr rewire.net site about ten minutes ago and said look at these idiots.

So I did.

You still never answered hacks questions from yesterday btw.
 
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