Around here there are a lot of companies with large yellow pages ads that use flat rate pricing to gouge the consumer, so most of the union shops have shied away from using it. We discussed this awhile ago over at CT when my neighbor was quoted $800.00 to install a kitchen sink faucet that he was supplying, so I had him and his wife call twenty different shops out of curiosity, and the pricing was all over the place. The lowest price he was quoted was $300.00 from the flat rate contractors, I ended up doing the job on company time for our then normal T&M rate of $150.00 an hour,and billed him for 1 hour and $30.00 for new stops and supplies.Some would call it price fixing - but I wish all would convert to flat rate. Pricing T & M is forcing plumbing companies lower and lower to the point of being unprofitable.
It's not price fixing. You get to set your price. You should be setting it at what it costs you to do business and all businesses are different.Plumbcrazy said:Some would call it price fixing -
If thats how you run T&M then you need to go FR as you'll be homeless in a month, this is a dead horse issue.I have gone to FR now ,,, it is easier to say , " Ok Mr. H.O. , Installing this faucet is going to be $ X . Fixing the toilet is $ X. and changing the hose bib is $ X."
" Now we'll discount the last 2 items due to Multi Task ,,, Your total will be $$ .
Please sign here and we can get started " . DON'T YOU THINK THAT IS SO MUCH BETTER THEN ---
" We charge $ 150 per hour + $ 75 for the helper ( in the truck) + materials .
Might take two hours ,,, might take 6 ,,, I don't know ! "
The H.O. must feel like they are just waiting around with their pants around their ankles with T & M .