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, 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. At this point 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 contractor’s that have the business he or she need, and (2) the contractor who is desperate for work. If I were a contractor with all the work I can handle, I would charge a higher trip charge. This trip charge would consist of $69 to $89 to come out to offer a bid of services. This charge would dishearten the frugal consumer, which is the point of doing this. This process will ease the demand of 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 are fewer losses in business, negative responses, and the more business he or she will acquire. If one 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 bad 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, bad food, and terrible drinks. There is a reason the customer waits and pays a premium; 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.
At times, 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 have agreed to the work. Another method in explaining this waiver of trip fees is by explaining how I will apply the minimum charge to the work. Either one 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 easier.
In summary, as I mentioned previously, a trip charge is the regulator for people to take an incoming call, 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 businesses 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. For additional articles on interior services, pricing, and business procedures visit www.tremblayhouseofdesign.com
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