Unless You Are Charging About Six Times More Than You Pay Your Highest Paid Techs, You Are Losing Money on Every Service Call!
Approximately 35% of the industry uses flat rate pricing, including some very big names you have heard of. Companies report higher earnings, happier customers, and happier coworkers. Yes, you can have all three!
Flat Rate Information – A Little Background on Flat Rate Pricing
Flat rate pricing is NOT new. It has been around for many years. Flat rate pricing has been in use successfully by many other industries. In fact, many companies flat rate without calling flat rate pricing. Think of a menu at a restaurant.
The top dogs in this industry know the only way to make good money in service is with flat rate pricing. Industry experts overwhelmingly recommend flat rate pricing. Tens of thousands of users cannot be wrong. Flat rate pricing makes you more money, reduces invoice haggling, and improves morale!
The Problem With Time and Materials
Time and material pricing is very difficult to explain so customers get confused. The confused mind usually says no . . . says no to options, says no to upgrades, and says no to equipment replacements.
Callers will always compare your Hourly Rate to their Hourly Pay. This means that you can only charge so much before you are seen as a “rip-off” (even when you aren’t making money). How can you possibly justify your labor rate to an uneducated caller?
The faster you and your technicians get the less labor time you bill out on each service call. There’s no reason to become fast; it only costs you money.
Flat rate is simply giving the customer a firm up-front price before any work is done. This price includes parts, labor and sales tax.
Most contractors already flat rate two thirds of their work. You flat rate every time you write a sales proposal, quote a “clean and check”, or sell a service agreement.
With time and materials, you tell the customer what the repair will cost after the work is 100% complete. Is that fair?
What Do You Do When You Flat Rate?
Flat rate pricing is easier than time and material pricing. You carry a book that has the price of all common repairs; things you do 85% of the time (a miscellaneous section covers the rest). You charge a reasonable fee (like perhaps $69.00) to travel to their home or business. You then take your time and look over the problem. It’s great because the customer isn’t hassling you for not walking or talking fast enough. You quote from the book so there is no argument over what time you supposedly got there. The customer knows that everyone pays the same price because it’s in writing. They can either say yes or no. They usually say yes! If they say yes you get to work, if they say no you politely thank them and leave. It’s that simple!
How Big is the Flat Rate Book?
They’re not big and they’re not complicated. Flat rate pricing books don’t need to be very large. A couple of hundred pages is usually adequate. In fact, in the summer, you probably do 50 basic repairs 80% of the time. Same for the winter. A good miscellaneous section catches the rest and you can always use our “Price Builder” to make your own price – on the spot.
A Little More on Flat Rate Pricing
Regardless of who you are, you are using flat rate pricing now! Every time you write a sales proposal you are flat rating. Every time your customers ask “how much” your techs are giving out flat rate prices. Trouble is, your techs are guessing and ball parking and they’re not doing a very good job at it. That’s one reason they hate dealing with money.
Using a flat rate book from Aptora, you will provide your technicians with a simple, easy to follow, professionally written book, that includes a price for everything they do. Your technician simply looks up a task and quotes prices right from the book. The customer has an opportunity to ask questions, hear their options, and approve all work before it happens. Their is no risk.
Your customer will pay more because you’re offering them an absolute guaranteed no risk price. You avoid arguments over what time you showed up or when you left. You avoid unfair comparisons about your rates because you no longer disclose your hourly rate to the whole world.
You can be assured that your books are accurate because we know what we are talking about. We are owned and operated by someone like you. James R. Leichter is an accomplished service technician turned business man. He knows what you go through everyday because he has been there. We have been selling this flat rate program, under the same name, since 1996.
What’s In It For You?
• More Money! Raise Your Prices. This Will Increase Profit and You Deserve It.
• Reduce Complaints. Customers Authorize the Work.
• Offer Higher Pay and Better Benefits. Helps You Get and Keep Great People.
• Offer a Guaranteed Price. Your Customers Will Love Your No Risk Pricing.
• No Haggling Over Invoices. Few Would Argue Over a Guaranteed Price!
• Technicians Love It. Copy Repair Descriptions and Pricing Right Out of a Book!
• Few Mathematical Errors and Fewer Misspelled Words.
• Increase The Effectiveness of Yellow Page Ads and Other Marketing. You Will Catch More “Telephone” Shoppers.
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