Pros and or cons of doing T&M work?
I can change my hourly rate based on the homes neighborhood and square footage
I can't charge enough to make the payments on 2015 Mercedes Sprinter
Pro: T&M is no-risk for the contractor.Pros and or cons of doing T&M work?
But remember little Miss O'Leary will keep you there 3 hours moving furniture and washing floors. Minimum 3 hours are dangerous words.Pro: T&M is no-risk for the contractor.
Con: No-risk, no-reward
The best T&M business model I heard years ago is T&M based on two men per truck. You have a journeyman and a laborer. As an example, you say $100/hour each and in reality it is something like $170 for the journeyman and $30 for the laborer. So the true labor rate is masked, just as it is in flat-rate residential service. It doesn't work with one guy because you can't get $170 for one, or $340 for two journeymen. But you can get it with creative minimums, $100/hour 3 hour minimum.
$100/hour is as an example. You could plug $150 or $350 into the above example.
If you do that, why not just call it flat rate? :laughing:With t&m work, do you tell the customer it will take this many hours to do the work?
Number One "Con" of T&M.(if you can trust them to pay the bill and not weezle out for a discount when the invoice gets to them)