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Discussion Starter · #1 ·
How many plumbers here work for a company that charges flat rate? Owners not included. Must be an employee. OK now for those plumbers that answer "I do"....How does your boss pay you? By the hour or by the job that do you. For instance if you charge a customer 150 flat rate to replace a flapper ...do you get commission or by the hr pay? or both?
 

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I used to earn an hourly rate that was based off of the average sales $ over the last 3 months/hours.

It's sort of a hybrid between hourly and commission. Since your hourly rate always lags your sales by a few months it keeps you honest. It's a great system.
 

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Commission would be better then hourly, I know I work on commission. But were not a flat rate company.
 

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There are problems with commission.

Techs tend to do what is the fastest, not the best. They are concerned with only selling the biggest #s and then skip out after they have done lots of damage. You, the business owner are then left cleaning up the mess after you have already paid a tech for that job and now you’re paying another one to go in and clean up the mess. The 2nd tech will hate you for it because he feels he is being paid peanuts to go in and deal with a now irate customer (usually true). Commission companies tend to be revolving doors. If paying commission, you also get a reputation for being a high pressure sales company.
 

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Discussion Starter · #5 ·
I pay myself a percentage of billed labor.
 

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There are problems with commission.

Techs tend to do what is the fastest, not the best. They are concerned with only selling the biggest #s and then skip out after they have done lots of damage. You, the business owner are then left cleaning up the mess after you have already paid a tech for that job and now you’re paying another one to go in and clean up the mess. The 2nd tech will hate you for it because he feels he is being paid peanuts to go in and deal with a now irate customer (usually true). Commission companies tend to be revolving doors. If paying commission, you also get a reputation for being a high pressure sales company.
Thanks for telling me how I do my work.
 
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Folks I do my best on every job I do, I am in no way the way that has been explained by Protech. I like the commission work, I make more money then by the hour. I make 36+ per labor hour, today I had 1 $340 day, you won't see that by the hour employee. Unless your working prevailing wages.
 

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Discussion Starter · #9 ·
Folks I do my best on every job I do, I am in no way the way that has been explained by Protech. I like the commission work, I make more money then by the hour. I make 36+ per labor hour, today I had 1 $340 day, you won't see that by the hour employee. Unless your working prevailing wages.
Do you get paid for callbacks?
 

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I work commish, on flat rate and like it. I don't make near as much as the younger guys nor do I have a call back this year, and 40% are repeat customers. revolving door you betcha except for the good ones they seem to find us and stick around.
 

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Yes 2 per week but I don't get hardly any.
 

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OK, let me clarify that statement. Lot's of commission companies have those problems, but that was in no way meant to say that ALL commission companies are like that! Sorry:blush:
 

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Discussion Starter · #13 ·
OK, let me clarify that statement. Lot's of commission companies have those problems, but that was in no way meant to say that ALL commission companies are like that! Sorry:blush:
I knew what you meant.I'm not a ball buster
:laughing:
 

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I can tell you when I go on a job and it is a flapper job, and if that job took me 15 min, I always ask if there is other work needing to get done, if they say no everything else is fine, I'm done, I move on, we don't charge a travel fee. My time starts on arrival and stops when I write the invoice, jobs beyond our travel zone gets a travel fee added, and of that I get 1/2 of the fee.
 

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I used to be paid commission with all out of pocket expenses.
I would Lie, rush to beat others to jobs. Up sell up sell Hack to save time.
If numbers fell forced to retrain. Not my fault they had 50 techs and only 30 jobs. We were like a Pack of hungry wolves think they even played favoritism and I hated it.

Now I do it my way. I feel much better. No more scum bag sales tactics just honest work.
 

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Where I worked before I decided to open my own business I was on hourly wage but my boss worked on commisson. He would do and say anyting to get a job and replace plumbing that wasn't needed to replace. Sell them sewer ejector pits and pumps for condensate and floor drains, where just a regular sump would have worked fine. anything to raise the price of the job. I am not saying every commission worker and piece worker is like that but there are alot of them out there. To those of you that say you don't work like that then I respect and praise you for it but I have also seen the other side of it.
 

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Discussion Starter · #19 ·
My last job before starting my company, I worked on commission at a flatrate company. It was ok.

Now my company is flatrate, but I pay employees hourly based on performance. Kind of like how Protech described it in the second post.
So you had a choice and you choose to pay hourly....In my city the customers think the same way you do and choose to pay a plumber by the hour.....if they dont trust you to charge them correctly and do the job proper and be honest then they just dont hire you.....they ask a friend or a neighbor. About 4 or 5 business here have been around forever here and charge by the hour. The flat rate guys cant compete with that.....old names help alot when your in business. I've seen it....new guy comes to town with a big nice fancy fleet,advertises on the radio,tv,etc.....full page ad in the phonebook,nice uniforms etc. 6 months later you see the stickers ripped of the trucks sitting in a parking lot with a for sale sign on it and the phone has been cut-off. All things dont work in all places. I agree its easier being flat rate.....but you cant go flat rate here all by yourself and everyone else charge by the hour. You wuld go outta business likethe other guys. I wish i could do the flat rate. I'm agreeing with the concept.....but just cant find a way to make it work here.:thumbsup:
 

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I work for a flat rate and get paid by the hour. Though the company I work for charges flat rate based on 90 per hour, I only get 16.50. Another company I worked for was also flat rate based on 80 per hour and I got paid 26 per hour.

I also don't get paid overtime unless I work over 40 per week, even if I have a 14 hour day. If I have a lot of ot they try to make me go home early so they don't have to pay ot.
 
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