Charging part of an hourly rate?

[peterhyper]

I realised that I was being too kind (or stupid) and not charging customers any extra when I went a little over and into the next hour, and I am now charging them half of the next hour's labour charge if I go over 10 minutes into the next hour but work for less than 30 minutes.

I am curious if others on here immediately charge when they go into the next hour's labour, and if they charge the full hour even for say 20 minutes labour into that hour.

I am more referring to callouts when I go into the second or 3rd hour of labour as opposed to working for 8 hours for someone and worrying about charging for 5 minutes extra labour?

 

[GB.Kayak]

So, an interesting read on New Year's Day 2018; the 'analytics' have given me a 'welcome' diversion from other more pressing but more 'unpleasant' tasks! Please excuse me poking a little 'fun' at some of your responses?

29 posts from 18 respondents ... one sits on the 'fence' and enjoys the 'view' and one makes ' ... it up as ... ' he goes along and one asks clarifying questions! Of those who responded: most, just, 6 charge by the hour; 5 by the quarter and 4 by the half. 2 apply an 'increased' hourly rate for the first hour, one by as much as a 1/2; 3 apply a 'discounted' hourly rate for subsequent hours, one by as much as 2/3. 4 respondents operate a 'generous' 'buffer' where they will work for up to 5 or 10 minutes per job without pay!

I would like to challenge each respondent who has contributed so far to think hard this year about their 'value proposition' to their customer and the legacy that they leave the next 'electrician', DIY enthusiast or those 'cockroaches' of the world of electricity and the cause of so much poor installation practice and so many apocryphal electrical accidents and incidents ... the Electrical Trainee!

I find some of these responses to a degree 'unprofessional'. What is the exchange of 'value' between a professional tradesman and their customer? What will a 'canny' customer be thinking about our 'offer' which may or may not get us the first job; or so much more importantly the recommendation from the customer to all their friends for work to follow? One of the respondents here offers a 30 min minimum 'fee' while all others 'demand' 60! As a customer with little else to differentiate between possible contractors who are you going to choose ... particularly if finances are 'tight'? Indeed, would you employ the person who charges for 55 minutes of their time from which you have not benefited? If you were charged for 120 g of cheese from a supermarket and only received 65 g you would be standing at 'customer' services, tapping your foot, and complaining bitterly at being 'short changed'. Same as if you got a half-full box of screws from the wholesalers, or an electrical component that only half 'worked'! That said, we all have 'overheads', the costs of doing business and these should be covered adequately by our charging structure. If they are not, then we will not be in business for very long however successful we are in winning and keeping 'custom'!

Has anyone 'out there' come across 'lean' techniques ... what do people think? I am interested in thoughts on the following YouTube videos. Watch the first with the sound off ...

... how could this example, from a different trade and in a country with a totally different culture, impact domestic electrical installation in the UK? How might it improve the value to your customer? How might it improve your businesses profitability? What might you need in order to improve the 'economy' of your own effort?

... then listen to the narrative!

The narrator knows his business and what constitutes the 'break-even' point of at least one of his business processes ... I suspect he knows far more!

... improving just one of the business' processes ...

His staff are also extremely knowledgeable about their products, the business process and he chooses to invest in their wider general education as well.

What tools, test equipment and devices would make our lives easier or electrical installations safer? What electrical installation 'innovations' have really 'improved' our 'service' to our customers?

Wishing you a Prosperous New Year,

Yours Aye

GB

 

[elsparko]

So, an interesting read on New Year's Day 2018; the 'analytics' have given me a 'welcome' diversion from other more pressing but more 'unpleasant' tasks! Please excuse me poking a little 'fun' at some of your responses?

29 posts from 18 respondents ... one sits on the 'fence' and enjoys the 'view' and one makes ' ... it up as ... ' he goes along and one asks clarifying questions! Of those who responded: most, just, 6 charge by the hour; 5 by the quarter and 4 by the half. 2 apply an 'increased' hourly rate for the first hour, one by as much as a 1/2; 3 apply a 'discounted' hourly rate for subsequent hours, one by as much as 2/3. 4 respondents operate a 'generous' 'buffer' where they will work for up to 5 or 10 minutes per job without pay!

I would like to challenge each respondent who has contributed so far to think hard this year about their 'value proposition' to their customer and the legacy that they leave the next 'electrician', DIY enthusiast or those 'cockroaches' of the world of electricity and the cause of so much poor installation practice and so many apocryphal electrical accidents and incidents ... the Electrical Trainee!

I find some of these responses to a degree 'unprofessional'. What is the exchange of 'value' between a professional tradesman and their customer? What will a 'canny' customer be thinking about our 'offer' which may or may not get us the first job; or so much more importantly the recommendation from the customer to all their friends for work to follow? One of the respondents here offers a 30 min minimum 'fee' while all others 'demand' 60! As a customer with little else to differentiate between possible contractors who are you going to choose ... particularly if finances are 'tight'? Indeed, would you employ the person who charges for 55 minutes of their time from which you have not benefited? If you were charged for 120 g of cheese from a supermarket and only received 65 g you would be standing at 'customer' services, tapping your foot, and complaining bitterly at being 'short changed'. Same as if you got a half-full box of screws from the wholesalers, or an electrical component that only half 'worked'! That said, we all have 'overheads', the costs of doing business and these should be covered adequately by our charging structure. If they are not, then we will not be in business for very long however successful we are in winning and keeping 'custom'!

Has anyone 'out there' come across 'lean' techniques ... what do people think? I am interested in thoughts on the following YouTube videos. Watch the first with the sound off ...

... how could this example, from a different trade and in a country with a totally different culture, impact domestic electrical installation in the UK? How might it improve the value to your customer? How might it improve your businesses profitability? What might you need in order to improve the 'economy' of your own effort?

... then listen to the narrative!

The narrator knows his business and what constitutes the 'break-even' point of at least one of his business processes ... I suspect he knows far more!

... improving just one of the business' processes ...

His staff are also extremely knowledgeable about their products, the business process and he chooses to invest in their wider general education as well.

What tools, test equipment and devices would make our lives easier or electrical installations safer? What electrical installation 'innovations' have really 'improved' our 'service' to our customers?

Wishing you a Prosperous New Year,

Yours Aye

GB

the idea behind high pricing is it being worth your while to bother, if someone else is willing to do the job cheaper then let them run themselves into the ground for pennies

my last boss used to charge farmers an arm and a leg, we dont want the work, but they want our reputation.

 

[ferg]

2 hour minimum charge and normal hourly rate applies after that.

Part hour charged as full hour.

 

[static zap]

(Business pricing - as a weapon to defend from rivals -May be flexible)
.. I'm not a business yet !

 

[elsparko]

(Business pricing - as a weapon to defend from rivals -May be flexible)
.. I'm not a business yet !

dont compete on price, compete on ability/efficiency

the high ticket customers not only want competency, but also trust

 

[Taylortwocities]

Charge in whole hours if their car(s) have personalised number plates.

 

[peterhyper]

2 hour minimum charge and normal hourly rate applies after that.

Part hour charged as full hour.

Obviously it's up to you what you charge, but I couldn't justify a minimum 2 hour charge and I don't think I would get many callouts charging a minimum of 2 hours. Being inside the M25 the average charge for 2 hours labour wouldn't be much less than £100 (and often far more), and I struggle getting around half of that amount off a third of people who contact me for a callout especially when it's a quick job like a replacement switch.

As already highlighted, it's interesting the inconsistencies with pricing when one spark is happy with £10 for a quick job and another would demand a minimum of 2 hours pay for the same job.

 

[elsparko]

Obviously it's up to you what you charge, but I couldn't justify a minimum 2 hour charge and I don't think I would get many callouts charging a minimum of 2 hours. Being inside the M25 the average charge for 2 hours labour wouldn't be much less than £100 (and often far more), and I struggle getting around half of that amount off a third of people who contact me for a callout especially when it's a quick job like a replacement switch.

As already highlighted, it's interesting the inconsistencies with pricing when one spark is happy with £10 for a quick job and another would demand a minimum of 2 hours pay for the same job.

time is finite, i want to be fairly compensated for my time spent doing menial tasks like flipping back on an rcd when the customer is too dense to comprehend basic instructions over the phone

 

[elsparko]

one of my callouts last month was a blown re-wireable fuse on a lighting circuit, a lamp had blown hence "no power throughout property"

my time was essentially wasted when i could have been doing something far more challenging/worth my time

 

[elsparko]

i replaced a faulty rcbo for a kitchen rfc, tenant switches on their washing machine and it trips the rcbo

i still had to waste my time going back out to this property to verify the issue even though i knew what it was.

they complained that it had not tripped before i had been for remedials, well no ---- sherlock the rcbo was totally ----ed and wouldnt of tripped at all even if you shorted the circuit.

i had to go round and take a video to prove to the landlord, even though the sequence of events described by the tenant outed the washing machine as the culprit, as it was only when the machine was turned to its first cycle that it would trip the entire circuit

obviously i cant say that to the landlord who is adamant we have done something wrong, i took a video proving test results on new rcbo, showed that power was only affected when washing machine hit its first cycle so i stuck 2 hours overtime on my sheet for the day and im sure my boss will have charged a compensatory amount for himself also.

i wonder how so many of these tenants manage to hold down a job/ survive day to day with their limited knowledge

 

[static zap]

"no power throughout property"

Bigging it up for attention--learnt dealing with council / HousingAssoc !

 

[elsparko]

an older chap had us replace his oven when i was in my first year, my boss felt sorry for him due to the state of his house

we finished up and my boss gave him a price well below normal, guy went into one of his many jackets hung over a door and pulled out a fat wad of notes, this same man then offered to pay for my mum to have a private hip replacement done as she was too young to have it done under the nhs

Bigging it up for attention--learnt dealing with council / HousingAssoc !

yeah had a guy on xmas eve complain of "no hot water"

i get there and it turns out his electric shower wasnt working, hot water fine

faulty DP switch with N contact welded open

hes going to get a fat bill for that as we are on double time over xmas

 

[elsparko]

i had to go back to a flooded property last week to turn circuits back on, tenant had phoned up saying he didnt want to touch it and requested we visit to switch the mcbs back on

i get there, and he doesnt let me in and says he turned them back on himself, made him sign my ticket anyway, cheers for the 2 hours OT

 

[Midwest]

So, an interesting read on New Year's Day 2018; the 'analytics' have given me a 'welcome' diversion from other more pressing but more 'unpleasant' tasks! Please excuse me poking a little 'fun' at some of your responses?

29 posts from 18 respondents ... one sits on the 'fence' and enjoys the 'view' and one makes ' ... it up as ... ' he goes along and one asks clarifying questions! Of those who responded: most, just, 6 charge by the hour; 5 by the quarter and 4 by the half. 2 apply an 'increased' hourly rate for the first hour, one by as much as a 1/2; 3 apply a 'discounted' hourly rate for subsequent hours, one by as much as 2/3. 4 respondents operate a 'generous' 'buffer' where they will work for up to 5 or 10 minutes per job without pay!

I would like to challenge each respondent who has contributed so far to think hard this year about their 'value proposition' to their customer and the legacy that they leave the next 'electrician', DIY enthusiast or those 'cockroaches' of the world of electricity and the cause of so much poor installation practice and so many apocryphal electrical accidents and incidents ... the Electrical Trainee!

I find some of these responses to a degree 'unprofessional'. What is the exchange of 'value' between a professional tradesman and their customer? What will a 'canny' customer be thinking about our 'offer' which may or may not get us the first job; or so much more importantly the recommendation from the customer to all their friends for work to follow? One of the respondents here offers a 30 min minimum 'fee' while all others 'demand' 60! As a customer with little else to differentiate between possible contractors who are you going to choose ... particularly if finances are 'tight'? Indeed, would you employ the person who charges for 55 minutes of their time from which you have not benefited? If you were charged for 120 g of cheese from a supermarket and only received 65 g you would be standing at 'customer' services, tapping your foot, and complaining bitterly at being 'short changed'. Same as if you got a half-full box of screws from the wholesalers, or an electrical component that only half 'worked'! That said, we all have 'overheads', the costs of doing business and these should be covered adequately by our charging structure. If they are not, then we will not be in business for very long however successful we are in winning and keeping 'custom'!

Has anyone 'out there' come across 'lean' techniques ... what do people think? I am interested in thoughts on the following YouTube videos. Watch the first with the sound off ...

... how could this example, from a different trade and in a country with a totally different culture, impact domestic electrical installation in the UK? How might it improve the value to your customer? How might it improve your businesses profitability? What might you need in order to improve the 'economy' of your own effort?

... then listen to the narrative!

The narrator knows his business and what constitutes the 'break-even' point of at least one of his business processes ... I suspect he knows far more!

... improving just one of the business' processes ...

His staff are also extremely knowledgeable about their products, the business process and he chooses to invest in their wider general education as well.

What tools, test equipment and devices would make our lives easier or electrical installations safer? What electrical installation 'innovations' have really 'improved' our 'service' to our customers?

Wishing you a Prosperous New Year,

Yours Aye

GB

I lost interest after the second paragraph. Anyone seen Dunkirk film?

 

[elsparko]

I lost interest after the second paragraph. Anyone seen Dunkirk film?

yeah, was praying harry styles would bethe first to go, as usual a fantastic appearance from tom hardy or "bane in a plane"