Objections to Flat Rate
A few companies have
been damaged or ruined by going to flat ratepricing.
It’s not the flat
rate pricing that ruins the company but their greed. It is a little
easier to rip off customers with flat rate pricing than
with using time and material pricing. Sometimes technicians discover
a contractor is ripping off customers by charging
exorbitant prices. When that happens many technicians will quit the contractor. The contractor then is ruined because they can’t find and
retain good technicians.
It is critical that
technicians be educated on the benefits of using flat
rate pricing also the benefits to customers, and the
contractor so they “buy into” using flat
rate pricing.
Almost all of the
technicians who use flat rate pricing eventually like it far more
than time and material pricing.
Even if
a contractor is honest they may run into some price objections from
technicians when switching to flat rate pricing.
Most contractors in America have no idea how much they need
to charge to make a fair profit. The day they discover their true
costs of doing business is the day they realize they need to raise
their prices to survive.
It is very smart for a contractor to
spend a little time to educate their technicians on what it costs to run
a contracting business so they understand why you charge what you
need to charge.The vast majority of contractors who have switched to
flat rate pricing have only one regret, not doing it sooner.
