Flat Rate Price Books - Why Flat Rate?
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Flat Rate
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Why Flat Rate?
Does it really work?
What is Flat Rate
How
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They all Flat Rate, why don't you?
| Reduce Complaints | |
| With a flat rate system, you quote a complete price before work begins. The customer signs your work order with the complete price on it. The price you quote is for the complete job. There are no line items showing a labor rate that seems to be a brain surgeon's rate. There are no line items showing materials that your customer thinks he saw at a home center for half your price. |
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The volatile price issue is reduced to a single number that the customer accepts before work begins. Your business will be viewed more like a high level profession.
How many complaints does Sears receive about their labor rates?
Make a Profit
Many contractors reduce the amount they charge per hour to
avoid confrontation about labor rates. This reduces their profits
because their expenses remain the same. They end up paying themselves
little and having spouses who work the books for no pay.
Most consumers think T&M stands for Too Much;
as in Too Much cost to them and Too Much profit to you.
Who are your competitors and why are they more profitable? Mr. Rooter & Roto Rooter, two of the fastest growing and profitable franchise’s, are using the Flat Rate / Contract Pricing system. Utility companies and home centers, like Home Depot and Sears, are selling very successfully using Flat Rate. This is where the money is today.
And why do these successful businesses use Flat Rate?
Times have changed. Today’s customers are very busy, more educated about products and services. Today’s customers have been programmed to buy and pay for service as a complete price. Other formerly T&M industries have moved to Flat Rate. How do you pay for an oil change or a tune-up today?
By the way, these two businesses show the extra earning power of Flat Rate. The last time I had my oil changed, the tech came out and asked if I wanted a new air filter for ONLY $6.95 installed. They always try to sell extras while they have you there. With a Flat Rate system, you can sell extras by simply pointing out other work to be done. And you can say it will cost them ONLY the amount in your Addon Price Book. You can show them how much they save by doing it now versus having you come back. Or, show your customer the Service Contract price that will reduce their worry and expense. This yields higher sales for you and a customer that relies on you for future service.
Flat Rate is a Sales Tool to improve your profits.
There are thousands of other reasons to go Flat Rate.
If you are tired of short changing yourself to get the business, it's
time for a change.
If you are tired of complaints about your high labor rates, it's time
for a change.
If you're ready to begin making profits like the big guys, it's time for
a change.
It's time to go Flat Rate with the Best.