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Illinois Licensed Plumber
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4,253 Posts
Discussion Starter #1
I was just contacted by a guy named Boris, he works for some home warranty company. He informed me that he is in search for plumbers in my area cause he has lots of upcoming work. Then he asked me if I am T&M or flat rate. I told him T&M, he replied good so what is your hourly rate. I told him $160 per hour broken up by the half hour. Then then got real indigent and told me I was crazy, that he has never paid a plumber in my part of Illinois more than $50 an hour. That I should lower my rate since I will no longer need to advertise. He hung up on me before I had a chance to reply. Thing is the prevailing wage here for a journeyman plumber is $40.00 an hour not including any benefits.

I so wanted to give this guy an earful. No one tells me what I should be charging per hour. Everyones has overhead and needs to charge the right rates to clear the overhead and make a profit. I do hope he calls one of my other numbers.. I am waiting for this guy.

Sorry I had to get this off my chest. Was wondering what you all say to someone that tries to tell you they only want to pay less than half of what you normally charge, and they act like they are doing you a favor offering a so called opportunity?
 

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www.DunbarPlumbing.com
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5,478 Posts
Call him back. Ask for Boris Yeltsin. :)

I got a call yesterday as well, some woman saying there's tons of repipes in my area and since they are an insurance companies, they can give out tons of work.


Here's my response, verbatim:



"Beat it, Sweet Pea! Don't call my company wasting my time holding carrots on strings. I don't need your work the first 30 years before you called, and I certainly don't need it the 30 years after."




SLAM-click!


She was very condescending in manner, and I let her put out her two cents knowing I was saying no. Kinda like the put the foot in the door I'm not going to let you say no till I get my sermon in kinda technique?

Next! :laughing:
 

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Another problem with HW is that the customer is looking for a way to screw the ins. co. and the ins. is looking for a way to not pay much on a claim putting the plumber and his scruples under attack. All for a reduced rate and a sweet smelling carrot. The customer gets p o'd and the plumbers reputation takes a hit. Where's the win-win.
 

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I've had plenty of calls from outfits like that. Actually, I crunched numbers about ten years ago and found out that I should be charging around $160 an hour, so that's not excessive. I wish I could get it. Occasionally, with flat rate, I actually do get it.

There are plenty of idiots out there who haven't a clue what they need to charge for their work. And there are plenty of home services companies looking for them. Real estate companies are on about the same rung of the ladder. They're always hunting for people who work at half what everyone else works for, and then they recommend them to their buyers. Remember, these are people who are making about 10% on a sale, sometimes in the millions of dollars. They may not do well in bad times, but they make out like bandits in good times.
 

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Certified Lunatic
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20,658 Posts
Home insurance?
I haven't had any calls from them lately...
Usually I sat in the truck for a while sorting out what I was doing, what was covered, or, not... A real sweaty ear occaision...
The last time I did it differently...
We had an elightening conversation on just what they do cover on speakerphone in front of the homeowner...:laughing:

Hope that realtor has a good Lawyer!:whistling2:
 

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Illinois Licensed Plumber
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4,253 Posts
Discussion Starter #7
My friend Boris just called one of our other numbers today. After I let him have it with what the going rate is in the Chicago area, he then informed me he is looking for the little shops that are happy to charge $50 an hour.Then he said he is willing to pay up to $70. He then said he just did a contract with a Buffalo Grove plumber for $70 an hour. Of course I asked if this plumber has a Illinois Plumbing License(058), and an Illinois Plumbing Contractor License(055). He hung up on me again. :laughing: If anyone wants to work for such cheap rates, PM me I be happy to give you his phone number.
 

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Drain Cleaning Specialist
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2,076 Posts
Everyone's looking for "CHEAP"

While I was and still trying to grow my business I saw the light.
I charge what I charge more now because my job is gross equipment is expensive cost of doing business is expensive. Plus we have to drive to their home to put up with their sh:furious:t. $40 -$50 dollars an hour is fine if your an employee not self employed.

Those Rates per hour he said are because of what some companies pay their employee's per hour. I'm sure the true cost of the job is a lot higher and should be higher because you are not their employee.

Just remember, We do what no one else will do because they could not get paid enough to do what it we put up with their sh:furious:t

Ask the insurance guy how much he gets paid per hour?

Now how much is that insurance policy your employer is going to charge for?
 

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25 Posts
It's probably American Home shield. We do work for them, its pretty basic however it can be a PAIN in the rear because anything over 500$ you must call in and give them the diagnosis, wait on the phone and try and talk to someone who has no idea what your talking to them about. 'Why do you need to replace the supply line if the valve works?' type of thing. Basically it works like this , people buy a home.. the ahs warranty is provided to them for a year. If they have a plumbing problem or whatever they call AHS, then ahs sends us a work order.. We collect 60$ from the customer and bill AHS the rest.. The downside is the homeowner sometimes will think AHS is suppose to pay for EVERYTHING, even improperly installed items. Insurance people usually want everything in the house re-built for only 60$ !!! Lol..
 

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Insurance people usually want everything in the house re-built for only 60$ !!! Lol..
I get that too. They try to think of every problem they have seen in the house and see if you can fix it since you are already there and will only take a few minutes lol

I also get ALOT of new home owners turning in claims for pre existing conditions. You know, they have been in the house for a week and somehow all the problems just happened ;) All of the warranty companies we do business for cover only what happens after the policy date...
 

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Certified Lunatic
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Yea but you know how the realtors are at glossing over the home inspection and any thing else uncovered before the sale goes through...

But we're throwing in this useless warrantee....:thumbup:
 
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