The foundation stones for a balanced success are honesty, character, integrity, faith, love, and loyalty.-Zig Ziglar.
When asked how to determine
a trip charge or a flat rate to see a customer, usually one should research the
standard costs current in the market or the like services. Many times it should
be in the approximate costs of $19, $29, $39, $49, $59, $69, $79 or $89. I
usually charge $75 an hour. I determine this cost by taking the break-even point, my business overhead, and the direct costs, which are attributed to the
production of goods and services specific to my business. These costs are based
on materials, labor, and the expenses for my product. Last, I take marketing
statistics from social media or advertisements in effect when determining my
contracting services. My trip charge regulates my service charge.
As a business owner, I have to consider two
classes of contractors. These two classes are (1) the contractors that have the
business he or she needs, and (2) the contractor who is
desperate for work. If I were a contractor with all the work I could handle, I
would charge a higher trip charge. This trip charge would comprise $69 to $89
to come out to offer a bid of services. These charges would dishearten the frugal
consumer, which is the point of doing this. This process will ease the demand
for the schedule and services rendered. Try not to be insensitive to the client;
they may need the company’s services
in the future.
If the business cannot afford to lose
customers, one should regulate the trip charge to $39 to $49. If the business
owner remembers to reduce his or her trip charge, there will be fewer losses in
business, negative responses, and more business he or she will gain. When the contractor is desperate for work, the price should reduce in
scale once again to $19 or $29.
The only caveat is that there is a reason they
might charge this price. The quality of work, ethics,
or credentials may be a factor and that will be a poor decision. One way to look
at it is this. There is a reason one restaurant has a line around the corner
and the other across the street does not have
a line. Even though both restaurants are popular, one has poor service, terrible food, and terrible drinks. There is a reason the customer waits and pays a
premium; the better overall product he or
she is looking for in the meal.
There are many names one should call his or her
trip charge. The other names to pick from are service charge, service call fee,
or minimum charge.
I will waive the trip charge if the
customer agrees to use my company for the complete service or if I do the work
while I am there in the home. If that happens, I will charge the customer my
hourly fee for the scope of business rendered and I will mention this waiver as
a marketing tool after he or she has
agreed to the work. Another method of explaining this waiver of trip fees is by
explaining how I will apply the
minimum charge to the work. Either of these explanations will work, but the
business owner should practice and see which method is easier to use in one’s
sales pitch. Often, the discussions regarding minimum charges go away when one
is agreeable to waive the trip charge. This may create more sales and services.
This is especially beneficial if the associate answering the phones is not a proficient closer. Waiving a trip charge can
rationalize pricing more easily.
In summary, as I mentioned previously, a trip
charge is the regulator for people to
take an incoming call, and give uncomplicated answers to straightforward questions.
If one requires more calls, moderate the price. If the business has too many
calls, increase the charge some. Use the edict of supply and demand to benefit
the business's control over the work schedule.
Patrick Tremblay is the Principal Designer of Tremblay House of Design Services and the
Professional Business Practices instructor for community colleges in Santa
Clarita and Lancaster, California.
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