# Flat rate vs Hourly



## plumsolver (Apr 7, 2011)

Ok fellers an age old question I know but since I am just getting out there on my own I want to start my service business off right. What are the advantages and disadvantages{horror stories},tips, what do you do? where are you located{rural,big town}?, And what way would you suggest a new company this day in age should be doing. I have worked for companies that did both but am unsure of which route to take...


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## nhmaster3015 (Aug 5, 2008)

Mod's stop this now.... you know what's coming 

There's probably a half million posts here that discuss (ok bloody argue) this topic over and over and over again with absoultly no concensus among the membership.


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## Plumbdog (Jan 27, 2009)

I believe this horse is not only dead but beaten as well. There are plenty of old threads you can check out to get an idea of where everyone stands.


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## stillaround (Mar 11, 2009)

Delco used to plan a 5 year program because competition was so tight...theyd lose money on the battery until the 5th year and then make enough to keep on going....since thats how some big boys do it....and if I was starting off in business.. instead of which way to charge, devise a strategy that ends up making you money ...keywords being ...making money...by the 5th year anyway

unless anyone wants to debate which year should be the money making year...
Or you could join PSI if thats worth the money
Depends on whether your area of course uses copper or pex...
And I probably shouldnt say this, but if you are an atheist and supporter of evolution it s going to affect the outcome one way or another.....
Just out of curiosity, do you use sharkbites?...or ever been to Sandy Valley?


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## nhmaster3015 (Aug 5, 2008)

Hey Dog, where you at in Maine?


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## easttexasplumb (Oct 13, 2010)

Putty


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## plumsolver (Apr 7, 2011)

I have read some of the older threads and I don't mean to bring up old subjects but I am just curious. To see what others do If you don't want to contribute then don't but if you do I would like some up to date info without some of the typical trash talkin I havn't been a part of the site very long so even thread references maybe helpful thanks. And no never even heard of your sharkbite fittings sound a little Mickey Mouse to me..


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## Widdershins (Feb 5, 2011)

easttexasplumb said:


> Putty


 Cordless.


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## stillaround (Mar 11, 2009)

plumsolver said:


> I have read some of the older threads and I don't mean to bring up old subjects but I am just curious. To see what others do If you don't want to contribute then don't but if you do I would like some up to date info without some of the typical trash talkin I havn't been a part of the site very long so even thread references maybe helpful thanks. And no never even heard of your sharkbite fittings sound a little Mickey Mouse to me..


Not to be rude, if you read thru the exhaustive threads there is probably every conceivable pro and con on the topic. Something that has been such a long standing issue that touches people's core values and ethics isnt going to be reduced on a new thread...and especially just to satisfy your curiosity....

and editing your question doesnt help.


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## Plumbdog (Jan 27, 2009)

nhmaster3015 said:


> Hey Dog, where you at in Maine?


 
York. And you?


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## nhmaster3015 (Aug 5, 2008)

Lebanon


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## Plumberman (Jul 7, 2008)

Widdershins said:


> Cordless.


Putty and cordless... Less to tote


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## plbgbiz (Aug 27, 2010)

plumsolver said:


> ...unsure of which route to take...


Accurately determine your billable hour rate.
The method you choose to collect said rate is irrelevant.


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## OldSchool (Jan 30, 2010)

Do both then you have no arguement on either side


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## nhmaster3015 (Aug 5, 2008)

OldSchool said:


> Do both then you have no arguement on either side


 
BRILLIANT! The smartest post EVER. Imagine charging the customer the exact same price using either method. Hmmmmmmm ain't that the way it is supposed to work? Why yes, yes it is. :thumbsup:


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## Widdershins (Feb 5, 2011)

nhmaster3015 said:


> BRILLIANT! The smartest post EVER. Imagine charging the customer the exact same price using either method. Hmmmmmmm ain't that the way it is supposed to work? Why yes, yes it is. :thumbsup:


You need to get out more often.

Not a diss, per se, but you really need to broaden your horizons.


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## nhmaster3015 (Aug 5, 2008)

My horizons are pretty damn wide now, so's my ass :thumbsup:

Don't you get the brilliance of that post? Do you realize how many arguments we have had here about this subject? Don't you see that for a given overhead you still have to charge enough to cover that and make profit and it doesn't make a durn bit of difference what the invoice looks like. Like I said, Brilliant! 

Can I get an AMEN brother I said can I get an AMEN :laughing:


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## breid1903 (Feb 8, 2009)

AMEN brother. i kinda like piece work myself. breid..............:rockon:


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## Will (Jun 6, 2010)

I'm a putty guy too:thumbsup:


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## Redwood (Sep 8, 2008)

nhmaster3015 said:


> My horizons are pretty damn wide now, so's my ass :thumbsup:
> 
> Don't you get the brilliance of that post? Do you realize how many arguments we have had here about this subject? Don't you see that for a given overhead you still have to charge enough to cover that and make profit and it doesn't make a durn bit of difference what the invoice looks like. Like I said, Brilliant!
> 
> Can I get an AMEN brother I said can I get an AMEN :laughing:


AMEN Brother!!! AMEN! :thumbup:

The Flat Rate vs. T&M debate has finally been solved!


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## OldSchool (Jan 30, 2010)

OldSchool said:


> Do both then you have no arguement on either side


Solved the debate in 10 words....:laughing:

next time I will try to make it shorter


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## Widdershins (Feb 5, 2011)

Redwood said:


> The Flat Rate vs. T&M debate has finally been solved!


 About fuquing time.


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## U666A (Dec 11, 2010)

Dielctric... Final answer!


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## NZplumber (Jun 8, 2011)

It depends!!!


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## U666A (Dec 11, 2010)

NZplumber said:


> It depends!!!


...on whether you wear them or not!


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## tungsten plumb (Apr 15, 2010)

Area determines which one would be best. In my area customers perfer knowing their price upfront.


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## BROOKLYN\PLUMB (May 21, 2010)

Nope its solved doesn't matter it all works out the same 

Thank god its over now we can get back to the great flux debate


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## Growler (Apr 1, 2011)

BROOKLYN\PLUMB said:


> Nope its solved doesn't matter it all works out the same
> 
> Thank god its over now we can get back to the great flux debate


Putty, Cordless and T&M.


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## Growler (Apr 1, 2011)

tungsten plumb said:


> Area determines which one would be best. In my area customers perfer knowing their price upfront.


I'm T&M, but I think that's fair.

I sure wish you'd post more often, Tungsten.

I follow everything you have to say.


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## tungsten plumb (Apr 15, 2010)

Growler said:


> I'm T&M, but I think that's fair.
> 
> I sure wish you'd post more often, Tungsten.
> 
> I follow everything you have to say.


Thanks. But how do you truly know t&m is more fair. If it takes one plumber to install a faucet but the orher plumber in your shop takes 2 hours is that still considered fair if its the same amount of work. Flat rate should be based on a hourly rate and a pre determined amount of time it takes to do the job. My pricing is based using that formula. Like I said in my area I have never been asked for my hourly rate, all of my clients ask for the price to complete the task. They don't even want to know the material cost the majority of the time. Just how much and how long.


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## Will (Jun 6, 2010)

I do T&M on drain cleaning, repairs, gas leaks, pretty much everything except fixture installs.


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## RealLivePlumber (Jun 22, 2008)

Will said:


> I do T&M on drain cleaning, repairs, gas leaks, pretty much everything except fixture installs.


 
Yeah, but do you use putty on those aforementioned fixtures?:laughing:


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