Advertising
You've probably seen: six-wheel trucks with billboard-sized ads on the sides, sometimes displaying an enlarged image of a white tooth smiley face of middle-class woman on the phone, suggesting that everything in life is better for them now, because they wear a disposable booties-Heating & HVAC company found. Or maybe you were one of those colorful full-page ads in the Yellow Pages. You know the kind, they make you feel warm and fuzzy, and defineEveryone wanted to hear what you are. And as for the application of any logo with a credit card under the sun? Must ensure that if you get your plumber emergency unplanned short of money, then you should, without further consideration, just use the plastic? The number 800 is red hot like fire, suggesting subliminally "hotline just as the Maytag man is sitting, waiting patiently for the mind to calm nervous"? Welcome to the world of flat-rate plumbing and air conditioningAdvertise!
New Hampshire Bankruptcy Lawyer
I bet it's something that I do not know, unless of course you have to rent one of these companies - they charge between $ 125 and $ 400 per hour. If you do not know who calculated that the speed will not be ridiculed for your ignorance, since this percentage of the retail price of each part that says (wink) you need is covered.
Have you fixed?
Well, I bit 'light on the black magic behind the MO of flat-rate model has been paid, then maybe do not go into cardiac arrest with labelShaken, you should pay one of these companies for the next emergency plumbing or HVAC.
The background
Among the self-employed in the plumbing business are those who have long struggled to eek a decent life, including me. Traditionally, we calculated an hourly rate, plus a modest impact on the materials. As a service technician for two seconds Fuel Generation Company - Tenney and ferns Fuels Energy Center - in the early '80s, I was paid $ 3.75 per hourTo get started, ten cents above minimum wage. This company charges $ 25 per hour and a gain of parts, furnaces, burners and boilers, and the sale of oil, the latter taking the lion's share. Then, in 1983, Tenney sold as a heat stroke "oil marketing" and my salary was increased $ 6.90 per hour. In parallel, the increase in oil conglomerate Tenney new tariffs, and began charging all customers by connecting wire, and a couple of spray cleaner and a share able to dry quickly (kitty litter) to absorb the spilled oil, we are on the floor. Never mind that I cleaned the spit loaded with porcelain burner electrode, the customer or harmful aerosols. The name of the game off, service and installation work of the highest quality (at a fair price) for a slap-it-in-the-fast-as-can-and maximize profits in every way imaginable, regardless of the quality change. The new company has also led to technical training already> New method to other fields, to show our support, as would happen. It 'been a shock to me, a green horn, like any traditional practice conferred on me over the past two years has been clearly and painfully on his way out. The shock on the faces of customers, some who had been with the company since its founding, has been an exciting time for them and me. Steadily over the years 1980 and '90, he slipped the endangered Old School near the final extinction, along withfamily atmosphere that we were all accustomed to. The boys have their grand entrance with smooth, big, fancy signs, sports logos, which has left us - employees and customers - feel like an invasion was underway.
In 1988, I had almost finished with the new model, which I heard it through and use positive affirmations to lift me put my van service console - does this affect the peace of mind, so you can do with another soul-stirring days might workfor humans. At that time I was a plumber, who embody the philosophy of the new school taking the customer for all they were worth, seemed busy. Although I had been in business for eight years, a colleague and junior engineers - of which "to show me the ropes" my first day on the job - experience wise. At noon, he had managed to read 8 hours for the man, he would take charge each customer for the time supposed to return to their homeland and enter the store. It did not take3 If the client has lived in the same street, that still pay the entire return trip now, when they were the first service to call their way to this day. During our tours, calculate the profit motivated engineer a customer - my dentist - for a light bulb in the boiler room, which has met with the head and broke. Even if you have only cleared the dust from the oven. The bill came to over $ 300. Subsequently, it calculates a score for a power transformer that was notdefective. Then pay a 93 year old in a mobile home $ 285 USD to clean the dust from his oven, and a new oil burner nozzle, despite claiming that she barely maintain control of her deceased husband's social security. (A month later, when the woman called with a no-heat emergency, for me, the on-call technicians. Ging, I went to his house, after normal business hours, and discovered that the recorder can not Master Control had, so I replaced for free as ...Prize for the bathroom, the coach gave his first month. I would lie on my report, stating that call was not terminated because of false recall rechargeable electrodes.)
I was a piece for the exact time that I have paid on behalf of a client. Otherwise, if you do not charge for, say, a train itinerary around the house for the supply of parts and return to their homeland, or for the final day of the paperwork, I paid for that time. I thought the company owner was a criminal for his livelihoodhow he did it, and yearned for the nostalgic early days of Tenney and ferns - honest and ethical company. I felt not only in the present company (in many ways not fully explained in relation to this letter) snatched the customer, but I also demolished, its employees, the right to illegally docked my pay for not completing all the paperwork day.
The last straw for me was when the company Kay O'Brien, an old woman of 84 years calculated for a number of service calls from an employee hydraulicwere not aware of the oil burner. When he finally straightened to create the original problem, and that additional managed, with a magnificent service of pure ignorance, I suggested to call the central office to explain and (complain). The owner's daughter (the accountant of the company) has asked them to "pay the bill, or f-tion that will bring you to justice!" This incredibly disruptive and aggressive inspired me so much the lack of gratitude, as did Kay, and profoundly influenced my attitude,unlike anything I felt for all the previous company. I withdrew from participating in business meetings and events, and eventually I got fired. The boss told me "not a team game," and I agreed, at least not in his team, which lead me on the lonely road of self-employment ... and hard knocks.
Dying 5 years had passed and I realized that I had more money working for a new school employers during this period he lost his fear in a pure state. My result peekedto see beyond the poverty line barely enough to cover the other side, see what the Joneses if I did, no matter how I had been working to appeal. Soon, my wife left me for a lawyer. (Whatever happens, for richer or poorer? I decided to rich.) Instead of working for The Man in "everything I like about my fortune ' inventor of the risk (see my essay, "Lessons of Invention Development"), which, incidentally, is like jumping from a plane without firstCheck that the slide is on the back is not really a backpack full of bricks.
Shortly before the fall, as the old man of the mountain, I was trying to sell a company a flat fee franchises came and paid the sales pitch in equal shares to those listed above, over-the-top, site-specific advertising vehicles. I declined the invitation because their business model and methods seemed to voodoo. Insolvency seemed an attractive option. A localPlumbing business owners have to buy a franchise, and soon was concentrating all its efforts on service, for as long as his excessive consumption of alcohol has shown its emphasis behind the scenes, which is evident in his decision to change its business model for the Holy Grail forced the franchisor sold to him. He had many service vans with stocks I have not seen since ancient times. He had a big color ad in the phone book, which costs upwards of $ 1,000 per month should have. (I paid $ 250 for myBlack and white quarter page ad.) He had an 800 number, in bold red ink and slogans, I knew I was not smart enough to dream of himself. The display, with the credit card logos on the floor all in a row, I was convinced he had gone flat. I imagined him with a voodoo doll that looked like his clients, have expressed their portfolios to be paid pocket money you take from them for him - print the detailed instructions for some secret in his hand flat rate book. I wasThe skepticism of his ethics as it seemed to be made into something useful quality, fairness and full disclosure have been proposed. I thought: "If it quacks like a duck ..."
I thought that the methodology behind the new resolution, flat-rate. As a creative thinker and problem solver, I thought that the method was brilliant, side by side, the old school way of generating revenue. I examined the key issues in trade, but also the lack of compliance associated with beingIndependent, humiliated and depressed out of my sight. The competition was tough, and there seemed no way to get free offers on tariffs, customers and sales. I've been on the precipice of defeat, the holy martyrs for the cause of honest work at a fair price, which seemed to be surpassed. Also, there seemed no way can afford to staff and the package of services needed have called a routine basis. I kept my tone kept extraordinarily bad as thought it would not meetwhen he said, requires as a "vacation", "insurance", "vacation", so much like lava from a volcano, baking my patience to ashes. He did not know nor want to show you some embarrassment, that I had none of the bennies. Once upon a time, I liked everything he asked for the family fuel business. However, it seemed ironic, others with what I did not ask for the works by The Man
An established company with 15 technicians in the industrygenerate sufficient income through the Time & Materials model, but I started the point of view of employees, I interviewed a total package of compensation as required, and that I never had the company could afford to pay to see them. And with the customer in question, "What do you charge $ 35 per hour I get so and so for 25 dollars and hour!" pressure to suppress the desire to pay more was what I hated and feared the most, but it was always present. The most basic problem in business,Fixing urgent was the perception in consumers' minds, that whatever the hourly rate, there was always someone out there for a "competitive" bids should be sought. That sounds like free competition in the workplace. Do not charge by the hour, but the collection of fees for "materials only ', albeit with a heavy price that hides the true cost of parts, the standard model has appeared to solve the problems I had offered. I' ll explain.
The path isWork
If you call a company flat rate, usually because you are sure to include your no-heat, no hot water, or worse, have the problem "without water" solved quickly. Typical clients automatically fixed to "Yellow Pages" like steel to a magnet, and dials the number in the eye and the emotions convincingly. The company behind the ad, it is expected, and is in a sense, like the Maytag man awaiting the unsuspecting and desperate voice on the other side of the seatTelephone line. The voice is a general discontent, and the mantra of the Company pre Flat Rate - "Honey, just call ________." (In the vacuum with a simple name company fill rate.) "Repair and maintenance of all systems", "You get companies up-front estimates and fair, competitive prices", "to ensure a better quality", "90 days without payment, no interest financing "," Finally, a soldier who is always on time, or not pay a penny, "" Never a charge extraordinary "," You know the price beforestart "," Clean, professional technicians "," Immediate Response "," Our prices are based on established standards "; "_______ dissolves over the course of thousands of housing problems for a year and we can solve for now" - are like valium for anxiety to help the caller. These lines quickly attach your greatest time of need. Hey, if you can an expert, tidy, clean and professional plumber, you approve the price before the work is not allowed, and it smells good (yes, there is a nice display forHydraulic smell), and you can slap the repair of plastic, then who would not call it? It 'true that we usually have little time evaluators grease the parts needed in their warehouse on wheels to solve your problem and you must approve the price before starting work. But there is more to their formulas, and the intention of some eye-catching.
Catches
Many companies will tell you flat on the phone when you call, not the ad, which provides a guide to travel(Leverage), if you are not "price" for the elimination of the problem diagnosed, when they arrive. Until then, you've done all the hunting for a technician in the jungle of ads, you can endure. If I assure you that you can solve the problem quickly, you agree to pay for the trip, you should not agree with their price. In short, the technician, and in time he tells you that your problem is so and so and the cost is to solve the problem ... well, his book on page 7 flat rate. ThePrice seems a lot, but there is no way to know if there is too much - it is like comparing the marks side by side on the shelves of the supermarket generic. In addition, you are in a hurry to get your children go to school and go to work, and they all need to brush your teeth first. WANT water, now! To find your Visa card and steals it from you, and then engaged in the cellar for a while '. After repair, the fragrance comes to your plumbing upstairs,about subtlety, and if positive, out the door, picks up his boots, disposable, hoping you will find that you do not dirty the floor, perhaps the most profound recalls his visit.
On the road for its next service call, the engineer whistled for joy, knowing that he is only a commission of 7% (as an incentive to sell as many shares as possible) on gross sales, at the height of his salary $ 75,000. Some of these guys make more than one hundred dollars a year!
[As a salesman forThe company I last worked in 2002, I have 2% commission on net income, which was determined by the owner, even if I was not aware of his calculations. I feel a year later, and refused to pay my check fee.]
The Math
As they arrive at their high prices? Hypothetical cost of the pump pressure switch and the root of the problem of non-Rater $ 12 flat water, but you pay $ 379.25 (the charge that, before they approved the work ") $ 379.25. -$ 12 (the cost of the switch) = $ 367.25, the company mark-up. If you have an effort of time and material type, say, took $ 85 for an hour at home and one on the road, plus $ 24 - an average selling price for the switch, which costs $ 194. Now, subtract $ 24 compared to the flat rate of $ 379.25 and $ 355.25 is the amount of the labor market that you have uploaded. But wait, there's more. They share their work force equal to two (in hours) and the appropriate hourly rate is $ 178 per hour - more than twice as high as the time and cost of materialsboy! They think: "How can it be, has only been here for 45 minutes?" Then draw and remember their boots and cleaning the floor, streamline your concerns, especially for the new balance on your credit card, you can make minimum payments on each case. But do not forget to factor in interest, bringing the total cost of flat-rate repair company to new levels never before seen in the Old School model. What is the cut that the technical standard? 7% X $ 379.25= $ 26.55, but this is in addition to high salary or hourly wage.
These average values are, of course, but you get the idea.
Evaluators take some flat prices to an extreme, rake up to $ 400 and laugh now, so by their own admission of guilt of other craftsmen of the house of power. In fact they are there, heard at the bar.
And 'coupled with marketing, with consumers desperate emergency, otherwise the whole business model should not be supported. TheConsumers pay a premium for the company means that he knows he can be a technician with the necessary parts are there, within an hour. But that does not mean a wholly qualified to appear at your door. Anyone can change sides. In addition, add-ons that you sell the more you pay the premium ... until it solves the problem. It 's almost always a victory for the company, but a loss to the consumer. If no qualified technicians will sell three shares, or more,depending on the real problem and how long does it take to replace parts until the law is found, the hourly equivalent rate for these missiles are fast $ 400 per hour. It is 100 and the first mathematical
There is an army of these companies are now acquiring the shares of the most populous city, sustained mainly by its large ads in the hope that new clients, how many one-timers, because the bathroom negative economic Apropos took last time which is designed on the table, as well as $ 950 for aZoeller sump pump plastic suits you? Maybe $ 1,900 for 40 gallons electric water heater sounds attractive? I do not think so! Check Home Depot, prices for these items the next time you are there. It seems to be the flat-rate consumer information that should not see his shop. What I do not know does not hurt?
Most often these companies are franchises, and they appear all over the country, from California to New Hampshire. But a local company (although I suspect that it isjust a matter of time before selling franchises boast) equipped with 35 trucks on the road in New Hampshire! It must be so many dead moose on the road.
Two schools Collide
With flat-rate pricing as companies can afford to pay their employees better than the non-flat-rate competitors, and then workers from the old school guys like me. However, men tend to talent, skill and strength for the work ethicitself. The dilemma is rampant. I wonder why anyone would work for me, when all I had paid $ 40K a year, and meager benefits? The standard method to answer this question, as the dilemma of how to capitalize addresses independent craftsmen, they too can have the same benefits that require their employees.
The New School and package have convinced me of the direction of trade in business for some time under the direction, and that will never return to the days when Istarted as a technician oil burner for fuel companies, which had given the starting oil and coal burners same systems were before them. However, I choose the traditional work ethic that I learned the good fortune, at a time, as the winds of change should be transferred. I let go of the idea that I spend a lot and collect the profits are generated for me. Now I work alone and hiring other self-employed guy, if I have a second pair of hands, must perform workthat requires more than one, instead of going flat, and profit from the customer. I believe in business ethics (surely some of you laughed at my naivete.) Maybe I will never pass the old school approach, as I am still patiently sub zero for the quality of work through the bottom of the barrel of the labor pools, and some of those flat-rate companies. Call it ego, or call nostalgia, I call it freedom, the freedom to choose to learn about the great job I have today, withoutAnyone fraud.
Currently, where I only pay once for the time at work, I charge the whole time that I am committed to my customers, including travel time in both directions. Reach also charge for diesel fuel to get there. Finally, the time and cost of travel is in my local clients not to my advantage, it is their HVAC problems to solve - my main activity.
I know that every action necessary to complete all HVAC contracts, and the order in which to run. With 28 years of experience, IFeel, unlike many of evaluators plate, often only a few. In fact, many parts-changer in a simple uniform neatly pressed, the wheel of a moving billboard / warehouse, large inventory of about 25 karts ... and reserve a fixed rate.
Despite my many complaints about them, I fixed the innovators were very creative and insightful when formulating its trade in the solution for evil. However, I believe that their method is full of pitfalls, and opportunitiesfor fraud. Not all are bad, but make the following example:
Fraud
An example is my customer experience with a company flat Cheri Whittaker. Cheri called me an "accounting", to change the boiler in his home in Exeter, after my quarter-page in black and white display (which costs $ 450 per month), under the heading Portsmouth. As a seller, experienced and knowledgeable, I knew enough to get a lot of information in advance, before I agreed to give an estimate -something that everyone expects exhibition called the phonebook. Estimates assume a lot of time, if carefully and accurately. Cheri gave answers to my questions - and that is the (flat rate) companies, which condemned their old boiler two weeks before - let me guess, they just need an honest and experienced technicians to diagnose the problem correctly . I heard her husband, and agreed to give the assessment.
After arrival in the cellar, I had noticed that the air gate on the oil burnerdeliberately turned off, making the fire to burn incredibly dirty. Spitting black smoke from the chimney, and the tank was clogged with soot. Before long, the damage would lead to the oil burner. Cheri showed me the invoice and the recommendations of the engineers with whom he had left. There were many reasons for the condemnation of the ship listed - all false and designed to Cheri on the purchase of a new boiler from a "comfort counselor" were planning to send them to a pressureto appreciate. She had gone along with their diagnosis and prescription, the technician of a commission of $ 700 would receive his paycheck that week. Put it here more than once a week, and you can see how easily you could approach $ 100,000 annual salary.
The last time the boiler and burner was expected to visit before the company was a flat rate, over a year, so I knew that the engineers of the company had deliberately sabotaged the boiler. Otherwise, an oil burner of the air-hungryfailure would leave within weeks, and it was just before this point. In a sense, the declaration of the technician on the bill was correct: "The boiler is not to fail."
Cheri and her husband asked me to address the company package in their presence, so it's no surprise, I accepted. Soon the coach and his manager came to his house, and we approached the basement. He proved me wrong in 15 minutes, the company said in its statement, and no offense.The Whitakers have not been impressed with the answers and sunken eyes of the two guilty, and expelled from their home and told them that they would never return. I went to clean the tank very dirty, and return them in good condition for safe operation of a few hundred dollars - the cost of Far Cry from $ 10,000 would replace the boiler.
The summation
Clichés abound in situations like those mentioned above, as a caveat emptor - "Buyer Beware". And: "If it looks too good,to be true, then it probably is. "Think of all the requests, promises and warranties in ads in the directory, then remember what it was for you will be charged. And 'a high price? Have you ever been accused of that money so much for a service call in your past? What said of the so-called trip fee, you have done so decides, and deplore the flat rate has to fix the technical, the problem correctly the first time, or you have recalled devices as disposable boots, and surreptitious advertising slogan - "YouApproval of the price. "- They are designed for lay people to think the price for repairing a fool These companies are smart and rich, without a lot of quality work for the money, but sell a lot of parts that I take the economy strengthens.
My mom and her husband in California have been washed only by a firm fixed-rate, double the price paid for old air conditioners, which will put the program because its coolant destroys the ozone layer. I wish I couldthey have saved from the wolf in sheep's advisor Comfort garment, which has sold the idea to replace their furnace and condensing unit operation before the company released their boots and throws in their homeland. I do not know their fault that they bite, I think the snake responsible for ensuring that the snake to bite.
But, hey, at least an hour the owner of the company standard is satisfied does not work with the man - one thing we have in common
Have you fixed?
