Fix Rate For Small Jobs
Service is intangible. It’s hard to determined the results or prices upfront is what makes it hard to deal with it as a tangible product. Small jobs can sometimes turn into a challenging tasks and run the cost higher that originally estimated. However, experienced handy person can forecast trouble and plan ahead with the additional work.
Offering small jobs on a fix rate can sometimes save more than it might cost. The average service company are wasting on average of 40% on idle time lining up work. Offering tasks as a tangible product will allow sellers to eliminate the estimate process and automate the booking and even get prepaid for work that is a straight forward task.
Take replacing water heaters for example. Have price how much would it cost you to replace a water heater lately? Prices are anywhere from five hundreds to few thousands and not many can give a price over the phone. Kind of a strange behavior that pluming companies are well aware of their local code and available product which makes this task somehow standard. I see no harm in pricing the labor for this task at a flat rate and allow the customer to drop ship a water heater of their choice. This will make plumber more specialize on what they do best rather than spending half of their day delivering appliances.
Here at boots and ladders we are not new to flat rate services. The founder Omar Kharbat adopted the idea of fixed rate when he first started his carpet cleaning business early 90s. Omar wasn’t a skill-full salesman and didn’t want to spend more time than he have to in the customer home. So he start offering whole house carpet cleaning for a flat rate of one hundred dollar. Wasn’t long before the word spread and his customers loved the product.
Omar said you loss some but you win more. Similar to insurance companies. Most important is you cut on your idle time and save huge on advertisements. Customers felt good spending on service now that it’s sold as tangible product.
The idea of pre booked pre paid jobs was born and wasn’t long before Omar adopted the idea on other services. in 2006 the team of Sano Steam, a company founded by Omar was receiving prepaid work orders without having to lift a finger or take a call. Today, Omar is building an app called Boots & ladders offering handymen to list their flat rate jobs for free. The app will allow one man operators to set their schedule and accept payment for their work ahead.