If you have been following along with us, then you know that we recently introduced you to the concept of Flat Rate Billing or a Flat Rate Billing Structure and how to spot a contractor who may use this method for pricing projects.
By this point, you may be wondering…
If Lapp Electric does not use a Flat Rate billing Structure, then how do you bill customers?
At Lapp Electric, we value each and every customer, whether you use us once every 5 years or multiple times a year. For this reason, we put a lot of emphasis on the overall customer experience.
Time & Material Billing
For customers who need same day, next day or have small repair projects completed, we bill on a time a material basis.
You are billed for the time we spend on your project and the material we use, not what someone else with a similar project may need.
For larger, more material and/or labor-intensive projects, we offer FREE estimates. We send someone out to look at the project or you can provide pictures or do a Virtual estimate.
You may be thinking, but couldn’t you just flat rate the estimate? Yes, we could but the purpose of sending someone out to look at the project is to provide estimates on a per project basis.
Since each home and project is different, this individualize approach allows you the peace of mind knowing you are receiving fair pricing for your particular project.
Why doesn’t Lapp Electric use a flat rate pricing structure?
Flat rate puts the emphasis on performing as much work as possible as quickly as possible
Because of the emphasis on doing things quickly, the quality of the quality of the project you receive may suffer.
There is generally a monetary incentive for the technician to sell while on site
This unfortunately can lead to over selling things you don’t need or even really want.
Companies that use a flat rate pricing structure usually try for a quick signature and completion of job
The mindset of these companies is that the more time you have to think about something, the less likely you are to do the project or the more likely you are to set a second opinion.
They prefer that you not have time to think through your decision.
Technicians who are employed by companies who use a flat rate billing structure are given large incentives to get quick and additional sales while on site
This generally leads to much higher prices for the consumer.