As a plumbing company, it’s likely that you charge one of two ways: by the hour for parts and labor or with a flat-rate pricing system. Everyone has their own opinion on which pricing system is better, but if you currently charge by the hour and present parts and hourly labor costs to customers during the sales process, it’s worth considering the benefits of utilizing a flat-rate pricing system for plumbing services:
Makes Customers Feel at Ease
When a pipe bursts, a water heater is on the fritz, or some other plumbing emergency happens, the customer is already stressed out. They don’t want to worry about the unknowns of what fixing the problem will end up costing them in the end once the work is complete. Using a flat-rate pricing system, you’re able to give them a quote up front before the work has even begun. This allows the customer to make an informed decision. They know exactly how much they’ll be spending and can do some research to learn that it’s a fair rate that they should be comfortable with and that you can be trusted.
Consistent Earnings
During an average week or month most plumbing businesses have a good estimate of how many calls they’ll get and what types of jobs they will be completing. Using a flat-rate pricing system, you know that your pricing is fair and you’ll be able to estimate how much money you’ll be earning in any given week or month. This makes it easier to create a budget and plan ahead for expenditures. There aren’t any surprises from month to month.
Transparency
Customers will appreciate the transparency provided when you use a flat-rate pricing system. Because the rates aren’t changing, you can include pricing information in your promotions, ads, website, and social media posts. This is very helpful for customers who are trying to decide which plumbing company to call. They know what to expect before they even pick up the phone and when they do call you, it’s with the intent to hire you because they’ve already determined that they are comfortable with the pricing structure.
Happy Customers
Because the customer agreed to the total price for service up front, as long as the job is completed well and in a timely manner, they will be happy with the results. Happy customers mean repeat business and referrals which can help you grow your business.
If you haven’t considered a flat-rate pricing system for your plumbing services in the past, it might be time to look into it. It really creates a win-win situation for you and the customer. You know that you are receiving adequate compensation for your plumbing services and the customer knows what they will be paying upfront, eliminating some of the stress involved when a plumbing crisis occurs.
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