Objections to Flat
Rate
A few companies have been damaged or ruined by
going to flat rate pricing. 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.
In closing, the vast majority of
contractors 99% who have switched to flat rate pricing have only one
regret, not doing it sooner.
