"Under straightforward pricing, contractors go away from charging by the hour but, instead, go by a price list with different tier levels at that also includes a diagnostic fee, as if they were doctors," Kevin Koch reports to us.
July 11, 2014 by Steve Payne
This post about a pricing method used largely by plumbing and heating contractors is from Kevin Koch of Koch Excavating. Let us know if this would work for your business.
Some contractors charge the same fees as doctors and lawyers – and even higher. How does a contractor charge more than a doctor?
Many plumbing and heating contractors have bought into a new slick scheme called “Straightforward Pricing.”
“Straightforward Pricing” is trademarked. Under this new scheme, the contractors go away from charging by the hour but instead they go by a price list with different tier levels that also includes a diagnostic fee, as if they were doctors. Straightforward Pricing contractors pay monthly fees for support and training on how to maximize profits. Some of these contractors have taken their pricing to a whole new level.
Here is an example of how Straightforward Pricing works:
My 84 year-old friend called a heating contractor to fix her furnace. The contractor was on-site less then 30 minutes, no new parts were used, yet the bill was an alarming $738.00. The contractor charged a diagnostic fee and used their Straightforward Price list to arrive at $738.00 for the service call.
Bottom line is that you should not compare a blue collar or white collar profession and try to put them on an equal playing field.
You have to do your homework in hiring a doctor, a lawyer or a contractor because there are dumb ones in every profession.
I have learned that the amount of money anybody charges has nothing to do with your expectations.