Have We All Gone Flat Rate?

In response to the article Flat Rate vs. T&M (CB, October 2004, p. 38), I can't speak for other flat rate advocates, but I will tell you that overcharging the customer and hiding that fact should NEVER be one's motivation for using a proper flat rate book. That's an example of flat rate gone bad. However, there is nothing wrong with charging a price that is equal to the cost of operating a professional business plus a decent profit.

I find it strange that there is even a debate on using flat rate pricing. Don't all of you use it now? For those of you who say, "no way," what do you tell a customer who asks you now much your proposed repair or replacement will cost? Do you tell them you can't disclose that kind of confidential information until you're ready to fill out the invoice? Of, course not! Remember this, when you tell someone how much something costs: before you sell it, you're flat rating!

A final point: Although people like to argue against flat rate, not many of them will admit that the same arguments can be made against time & materials. No matter whether the industry is plumbing, electrical, or HVAC, power in the hands of improper people can be a very dangerous thing. It's up to us to use the power in the way it was intended and to do the right thing.