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View Full Version : Flat Rate or T&M?



D'Brie
09-30-2009, 08:09 PM
I read the forums quite regularly and have been enjoying my education here. I'd enjoy hearing the opinions of our more seasoned members on the pros and cons between flate rating jobs or charging by time & material. Thanks!

Basement_Lurker
09-30-2009, 08:23 PM
wasn't this poll already done?

D'Brie
09-30-2009, 08:48 PM
wasn't this poll already done?

Maybe but I did not find one.

Terry
09-30-2009, 09:09 PM
Most plumbers either bid a job or flat rate it.

There is only so much time in the day for making large lists of items, pricing them, typing them, jeeze, if plumbers wanted to go white collar, they would have stayed in school.

The only way I would do Time and Material, is if the homeowener would pay me for all of that book work.
I have had some jobs that would have taken an extra eight hours to compile a list.

Most things we do so often, we can just look at it and know what it should be.

When I go to a resturant, I read the menu and order.
Bam! There's the price, and I want it!

D'Brie
09-30-2009, 09:20 PM
Most plumbers either bid a job or flat rate it.

There is only so much time in the day for making large lists of items, pricing them, typing them, jeeze, if plumbers wanted to go white collar, they would have stayed in school.

The only way I would do Time and Material, is if the homeowener would pay me for all of that book work.
I have had some jobs that would have taken an extra eight hours to compile a list.

Most things we do so often, we can just look at it and know what it should be.

When I go to a resturant, I read the menu and order.
Bam! There's the price, and I want it!

Hey Terry, thanks for the info. I'm a second year apprentice (at age 49) loving the work (when we have it) and wanted to know what other plumbers thought. Our shop is flat rate (with a few exceptions) also for the same reasons as you mentioned. If you get up to Whatcom County sometime drop me a note I know where a few good pubs are here. :D

hj
10-02-2009, 07:59 AM
You have to differentiate between the sizes of the jobs you are asking about. Larger projects are done using an estimate, but while that is a "flat rate" to the customer, it is a calculated using a type of time and material format. Small/service jobs may lend themselves to either, BUT, since they are not "cut and dried" like the tasks in an automobile repair Blue Book, the time required to perform the task can vary according to the technician's ability and the job circumstances. Time and material can accomodate those variations at the time of invoicing. Doing them "flat rate" means you either lose money on the "difficult" jobs, OR you charge EVERY job as if it were going to be difficult, thus overcharging the majority of your clients.