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I may get flamed again but here goes. I have not gotten on flat rate pricing. I've sat thru several classes that recommend it but every flat rate company I've checked with is just so expensive to get set up with. We have grown the past few years from me doing the service work myself and running a 2 man crew for installs, to having a service tech and running 2- 2 man crews. Still a small company but twice as big as we were 3 or 4 years ago. So when I was doing the service myself flat rate didn't seem like a big priority because I wasn't paying a tech, I was the tech. Now that I'm paying a tech we have gone up on pricing but have not jumped on the flat rate wagon yet, and I can see the need for it. Our overhead has almost doubled along with the growth of the business and I'm not sure I have it adequately covered in our service fee. I know exactly what it cost a day to be in business but I'm still unsure I'm charging enough. The flat rate I believe would fix that problem. What flat rate company do you guys recommend? Rodney
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I may get flamed again but here goes. I have not gotten on flat rate pricing. I've sat thru several classes that recommend it but every flat rate company I've checked with is just so expensive to get set up with. We have grown the past few years from me doing the service work myself and running a 2 man crew for installs, to having a service tech and running 2- 2 man crews. Still a small company but twice as big as we were 3 or 4 years ago. So when I was doing the service myself flat rate didn't seem like a big priority because I wasn't paying a tech, I was the tech. Now that I'm paying a tech we have gone up on pricing but have not jumped on the flat rate wagon yet, and I can see the need for it. Our overhead has almost doubled along with the growth of the business and I'm not sure I have it adequately covered in our service fee. I know exactly what it cost a day to be in business but I'm still unsure I'm charging enough. The flat rate I believe would fix that problem. What flat rate company do you guys recommend? Rodney
E-mail me privately and I will set you up
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Steve @ Noon-Air Heating & A/C
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Make your own using Excel.

Size doesn't matter, do you want to make things simple and make money?

You're right, you wasn't paying a tech (YOURSELF), that *is* a shame. Don't you think you and your family DESERVE the *extra* benefits from running your own company? If not, why don't you work for someone else and leave the headaches for them to worry about?

Most don't.

You either know or you don't... Or, you are afraid to charge what it takes to make a living and to grow your business. I know that you have already grown, but that doesn't mean that your paying your tech/installers what they should be or that your including benefits. Most owners that are not business oriented will take away from their own family to help their hired help. <-- sound familiar?

Do you know much about Excel?
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<Or, you are afraid to charge what it takes to make a living and to grow your business.>
You hit the nail on the head. I always have a fear of pricing myself out of the market but I'm getting over it. I'm learning that I can sit at home on the couch and make nothing, and heck it's a lot easier. I do know excel very well. You guys have brought out some great points. It helps to sometimes just hear someone say they are doing this stuff and it's working for them. It gives the encouragement to take action and make some changes. Thanks guys & thanks for not flaming me (or at least not yet) Rodney
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Stick around and I'm sure we'll get some more flaming in later... :-)
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If you're gonna go broke anyways, then two main choices either do it while sitting on your ass or do it while working your ass off.
( And takes a complete and utter moron to actively persue the latter )
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The flat rate I believe would fix that problem. What flat rate company do you guys recommend? Rodney --------------------------------------------------------------
I do not use flat rate, but I have no problem with it. I think you can make it work with due diligence.
I considered it a while back and decided it was not something I wanted to do. So for the sake of argument here is an article opposed to flat rate pricing.
http://www.masterplumbers.com/plumbviews/2002/flatrate_revised1.asp
Joseph
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Thats fine for turd chasers, but everybody else in the world is flat rate, except for those who don't know what the cost of running their business is, or how to price their services to make a profit. Joseph... do you know what your actual cost (including overhead and labor) is to roll a truck to go to a service call?? I'll bet its a lot more than your service call fee. How can you absorb those cost overages?? not gonna happen with T&M... unless you are in an area where you can charge $200+ just to show up at somebodys door....and even then, you costs are going to be a lot higher because of the cost of living in that area.
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I just posted it as a resource, I think you got to know the pro and con to make good decisions. If you notice the word "Diligence" in the above, I think that is an important point.

Yes and it is in constant flux. To be specific I invoice for Time, Materials (with a % mark up), Overhead, Profit, Trip (fuel surcharge) and Taxes. Reminder I am service Only...

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Joseph when turns out I really need a tech I'm gonna pick a guy like you over some flat rater 1/2 page dex advertiser every time.
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Joseph wrote:

I think that flat rate works OK in captive markets. I have watched 2 Flat raters go belly up here. But that could have been all around bad business practices also. They may have turned to flat rate out of desperation as they were going down. I charge variable rates commensary(sp) with the abilities of my customers. I will never get rich..But when I am gone.. I will be missed. I do agree with the using of Excel to set up your own local system. The flat rate system sellers are just a leech looking for a permanent cash register. I can buy automotive flat rate a Helluva a lot cheaper. I already have a Government living off the sweat of my brow. I certainly don't need anyone else sucking my cashflow dry. My computer system is damn sure gonna earn its keep.

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