# Service call fee?



## smoldrn (Oct 4, 2010)

Would like some opinions.
My ads say free estimates & free service calls. 
For the past 22yrs in business, I've always charged the customer travel time 1 way, as part of the 1st hour rate. My old boss told me years ago that it was the fairest way for both parties.

I get a call from an old guy yesterday, go out & get his dw draining, & add a shut off valve to a water main. when I gave him the bill, he pointed to the YP ad & asked why I charged what I did. Tried to explain that 'no service call fee' = no trip charge just to pull in the driveway. He told me that he thought it was misleading.
What do you think?


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## plbgbiz (Aug 27, 2010)

smoldrn said:


> ...My ads say free estimates & free service calls.....


Advertising "free service calls" is a bit ambiguous. Many people equate the term "service call" to the first hour's worth of work or at least minimal work (service) like changing a flapper.

I think he may have a point.


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## smoldrn (Oct 4, 2010)

Yeah, maybe I'll change the new ad coming out to 'no trip charge'.


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## tungsten plumb (Apr 15, 2010)

Here in the Bay Area free service call would = no charge for your service to these customers. So I think you should probably remove that from your ad or at least explain what you mean to the customer on the phone so that you don't waste a trip.


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## plbgbiz (Aug 27, 2010)

smoldrn said:


> Yeah, maybe I'll change the new ad coming out to 'no trip charge'.


That would be more clear but do you really need to address that in the ad? Maybe it would be better to handle price issues when they call.


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## Associated Plum (Nov 4, 2008)

We don't do anything for free.

You might consider charging a dispatch fee to have the plumber arrive at the house and then you could waive that if they decide to have you do the work.


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## user8031 (Dec 14, 2011)

My opinion, the customer sort of has a point. You lack enough clarity per se.

We DO charge a Service call/Trip charge. It is $75. It is COMPLETELY waived with ANY paid service. 

You have to separate the customer from the shopper, otherwise you could drive around all day looking at jobs you "might" get, or dealing with tire kickers.

No matter what, we come back to the shop with something, either with the money from a job or the money from the Service call/Trip charge.

Bottom line- ALWAYS get paid for ANYTHING and EVERYTHING.


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## smoldrn (Oct 4, 2010)

Well, I received some good feedback here, & that's what I was looking for. Yesterday was only the 2nd or 3rd negative I've gotten off the ad in years.

I do like the $75. fee & deducting it from an actual repair. Around here, most outfits charge from 65-100 just to show up, then it starts hourly when they get out of the truck, plus many get a credit card # over the phone & add the charge before they'll send a 'tech' out.


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## AlbacoreShuffle (Aug 28, 2011)

Why was the customer even surprised by the bill ?

I always have the customer sign for all charges before I get started .


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## Phat Cat (Apr 1, 2009)

I'm somewhat surprised at the responses so far. He did do the work and his ad did not say 'free work.'

What kind of customer actually has work done and then acts surprised? The kind of customer that you don't want! Surely the customer knew he would be charged something, right?

Having a dispatch fee, call-out fee, trip fee, fuel surcharge, time minimums etc. tends to weed out difficult customers. Why give free estimates at all? If the customer is not willing to pay for your time, why are you willing to pay to give them an estimate? Of course, I am assuming you drive a vehicle to look at a job. :yes:


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## OldSchool (Jan 30, 2010)

Nothing in life is free... it always cost somebody something....


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## HSI (Jun 3, 2011)

Last year when we started up our shop we charged a $49 dispatch fee and let the customers know it would be waived if we did the work. We were successful with one out of every ten customers for approval to go to their house to fix the issue. 
 We decided to give free estimates for a while and see how that would compare. We land eight out of ten jobs when we show up and meet face to face. There is always the few who want it for next to nothing and we gracefully part company. For now this seems to be working so we will stick with it.


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## Golddog111 (Jan 3, 2012)

*Free estimate vs I'm gonna screw you*

Ive always done free estimates myself, I think it promotes good business

You just have to be a good judge of character to tell how serious they are and how much time your willing to stay in there house


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## Greenguy (Jan 22, 2011)

the other choice is leave your ad as it is and in small print clarify what is free or that your waving your trip charge, or call out fee, etc.


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## smoldrn (Oct 4, 2010)

I like the free estimates because I can usually sell the job if I'm in front of the customer. Giving them a price over the phone just lets them continue shopping.
I explained to the customer that an estimate does not entail me picking up tools. At that point it's a repair call.


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## Tommy plumber (Feb 19, 2010)

Phat Cat said:


> What kind of customer actually has work done and then acts surprised? . :yes:


 





I am going to infer that smoldrn charges hourly. Hence the older gentleman's surprise at the final bill.


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## smoldrn (Oct 4, 2010)

Tommy plumber said:


> I am going to infer that smoldrn charges hourly. Hence the older gentleman's surprise at the final bill.


Yes, I'm hourly, but what I did was re-route his dw drain hose to provide an air gap, search in his back yard for a water line feeding a separate apt., then sweat in a valve for the building so he could keep it shut off. ( He had just bought the house). I had 2 1/2 hrs in it including travel time, & only billed the old guy $200. Pretty much a charity case.

He originally thought that he needed a new dw, & had looked at one the night before that was $500 that he would buy if he needed a new one.
I figure if they don't like the price, pick up the phone book & smile & dial.


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## Mississippiplum (Sep 30, 2011)

smoldrn said:


> Yes, I'm hourly, but what I did was re-route his dw drain hose to provide an air gap, search in his back yard for a water line feeding a separate apt., then sweat in a valve for the building so he could keep it shut off. ( He had just bought the house). I had 2 1/2 hrs in it including travel time, & only billed the old guy $200. Pretty much a charity case.
> 
> He originally thought that he needed a new dw, & had looked at one the night before that was $500 that he would buy if he needed a new one.
> I figure if they don't like the price, pick up the phone book & smile & dial.


200 dollars, that's cheap, that guy don't need to be complaining lol.

Sent from my roof using smoke signals


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## smoldrn (Oct 4, 2010)

Exactly!


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## 130 PLUMBER (Oct 22, 2009)

Associated Plum said:


> You might consider charging a dispatch fee to have the plumber arrive at the house and then you could waive that if they decide to have you do the work.


Thats pretty much what we do. If it's a repeat customer, we don't charge a service charge fee


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## jeffreyplumber (Dec 7, 2009)

Did I read you right? You actualy did 2 and half hours work and then told the guy his bill was 200 dollars befor talking money at all? Your charges seem very reasonable to me, However I would not do that job without discussing money . This isnt 5 bucks I think you should have given the old guy a heads up.
This guy seriously might have through total ignorance not expected a bill in that amount ( I still think your price is low) I think a little more clarity with the customer is needed.


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## lucas_h (Jan 5, 2012)

I've always liked the Flat-Rate pricing method better myself. This method reduces the customer's wiggle-room to negotiate the bill as he knows up front what it will be and would have already agreed to it prior to you starting work. 

It gives you better marketing abilities like, "know your cost before we even start" and you could even run specials like a discounted first half-hour... of course there are still jobs where you will have to bid time and material, but the typical service calls would be pretty easy to put a flat-rate to that would keep you profitable.


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## ChrisConnor (Dec 31, 2009)

I waive the dispatch fee if the work is done and give an upfront price. There is always somebody who tries to deduct the 49 dollar dispatch fee, even though I tell them it's already been waived, they have to SEE it on paper that it's waived. Just nuts.

Next time I make invoices, I am going to have a waived dispatch fee checkbox for the nutters.


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## smoldrn (Oct 4, 2010)

jeffreyplumber said:


> Did I read you right? You actualy did 2 and half hours work and then told the guy his bill was 200 dollars befor talking money at all? Your charges seem very reasonable to me, However I would not do that job without discussing money . This isnt 5 bucks I think you should have given the old guy a heads up.
> This guy seriously might have through total ignorance not expected a bill in that amount ( I still think your price is low) I think a little more clarity with the customer is needed.


I did tell him a price before I cut in the outside valve. Now, I'd already fixed the dw, & hunted & dug outside the building looking for the water line, & he asked me how much to add a valve.
I told him about 100, & he asked if that included all the work I'd done so far. I explained that the other work would be additional. I told him that the total job should be about 270, but I'd only charge him 200. I figured that was more than fair.


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## smoldrn (Oct 4, 2010)

I do think that over all he was ok with the price. Before i left, he asked if I did any fixture remodeling, & wanted a card..


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## jeffreyplumber (Dec 7, 2009)

Good Im sure he saw you gave him a deal.


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## cityplumbing (Jun 12, 2010)

They all want a deal.. Next time give him a free pen..


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## Richard Hilliard (Apr 10, 2010)

The problem is not what was charged however the problem is the wording of the charge. No service charge but then again the invoice states travel and first hour. Perhaps changing it to 1 hour minimum with no service charge might help. I would assume the problem occurs with jobs that take less than an hour’s time on the job verse more than an hour on the job.

Or deal with it as it comes, I am sure it does not happen frequently.


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## cityplumbing (Jun 12, 2010)

I always get people calling about a free estimate to come out and figure out a solution for there plumbing problem. I explain to them I would only give free estimates if there replacing something or if there remodeling and need a price to move pipes etc. I tell them that people call all the time and have me come out to figure out there isuue and then they end up doing it themselves or call around for a lower price then mine..


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## jeffreyplumber (Dec 7, 2009)

I read your opening question again. You say your ad states "free estimate and free service call" Thats fine ! At what point does the custumer get advised there is a one way travel charge? It should be before you get to his house. If you are telling them up front thats fine.


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## tungsten plumb (Apr 15, 2010)

buznessry said:


> Crawford Mechanical Service
> dubyadubyadubyadotspamlinkremoveddotcom


We're not interested in your spam or website that you are promoting. This site isn't for diy'ers so you can post your stuff elsewhere we don't need tips.


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## user8031 (Dec 14, 2011)

To the OP- Listen, this is not rocket science. Keep it simple, such as

"NO Trip charge with any paid service". That explains everything.

Your not clear at all. The customer wins in this one, at least from the information from your original posting.


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## user8031 (Dec 14, 2011)

There are unlimited ways to bill a customer. If you want to lose that customer or you want to get a reputation that is anything less than a good one, keep up your current method. If i were the customer and you tried that on me, I would pay you for everything EXCEPT your one way whatever charge you tossed onto the bill. Then I'd tell you that if you wanted the additional money , you have 2 options. You can try and kick my A$$ or sue me, followed by a door slammed behind you.

Make a slight adjustment, word your advertising to where it is simple but to where it cannot be explained any better.


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## smellslike$tome (Jun 16, 2008)

smoldrn said:


> I do think that over all he was ok with the price. Before i left, he asked if I did any fixture remodeling, & wanted a card..


Really!?


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## smellslike$tome (Jun 16, 2008)

jeffreyplumber said:


> Good Im sure he saw you gave him a deal.


... and he'll expect the same deal every time he calls!


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## smellslike$tome (Jun 16, 2008)

I don't know, this just seems like pricing 101. Tell them how much it will be before you start, have him sign it and get to work. I DON'T WANT TO START A FIGHT but I cannot for the life of me understand why anyone still wants to use t&m.

I was at a client's the other morning and performed 3 tasks: annual tankless descaling flush, clean and descale shower riser, replace hose faucet.

I set the tankless up to flush, went in and poured a pint of CLR down the riser to soften up the scale before I scrapped it, went outside and replaced the hose faucet, came back and cleaned the scale & crud out of the shower riser, went back to the basement and babysat the flush for about 15 more minutes, secured everything and went to collect.

At one point I was working on 3 jobs simultaneously. I was there for just over an hour. I charged for 3 separate tasks and I won't say how much because some of you will have a stroke but I promise you that it was well in excess of what any t&m shop in the world could charge for just over an hours work.

Should I be punished for being efficient? I guarantee any t&m shop would have completed the tasks one at a time or been royally reamed by the boss man if he saw the ticket.

Now having said all that, I freely admit that is exceedingly rare that I will be able to work on 3 tasks simultaneously but if it's possible, good for me. We priced everything before hand, obtained an authorization signature, and there should be no difficulty.


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## plbgbiz (Aug 27, 2010)

smellslike$tome said:


> ...Should I be punished for being efficient?...


No different than NASCAR. The guy with the most skill spends the least amount of time on the track and makes the most money. :yes: 

That's the way it should be.


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## Phat Cat (Apr 1, 2009)

plbgbiz said:


> No different than NASCAR. The guy with the most skill spends the least amount of time on the track and makes the most money. :yes:
> 
> That's the way it should be.


Damn, I like that one. Need to remember that for future use. :yes:


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## plbgbiz (Aug 27, 2010)

Phat Cat said:


> Damn, I like that one. Need to remember that for future use. :yes:


Just a bit of wisdom I stole from someone else....

Credit to Mr. Randy Hilton.


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