Service Prices

Rivets

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Bkeller, you make some valuable points, but you missed one key one. Every professional is deeply invested in themselves in their chosen occupation. It may be thousands of dollars in education, thousands of dollars in capital equipment, thousands of dollars in tools, etc. Take a look in the truck of your HVAC service tech, plumber, electrician, etc. and you will see their investment, not counting their time getting to the point where they can come to your place to service your needs. I don’t hear a complaint about their rates when they have to help your solve a problem you can’t handle. Don’t complain about a small engine service guy charging you $100.00 an hour for service when you can do it yourself. I’ll bet you will gladly pay a little more to hire anyone who will provide you a quality product or service the first time. I just paid $1700.00 to have my well pump replaced. I couldn’t do it myself, so I had to hire someone. Pump cost $725.00 and the job took 3 hours for two guys to complete. Is that rate too high, not after I saw how professional they preformed their job. Now if you see someone charging an excessive rate and not doing a quality job, I’m behind you 1000%. Just my normally wrong opinion.
 

StarTech

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I imagine a lot the professional techs here have done exactly what Rivets said. I personally am self trained for the most part. Even then I have and still do put in a lot time learning equipment ins and outs. Yes it takes a lot longer on a project that I never seen before but where the customer gets a benefit as I charge only what I figure it would taken if I knew that equipment.

It is like a Cam Am ATV I repaired a few years ago. I had to replace the rear universal joints. The first it took 4-5 hours to do the job and I billed for one hour, chalking the rest of the time to training expense. Of course I had go right back in the next day as the drive shaft wasn't clocked properly but that was done by the previous and I had just reassembled as it came out per my witness marks. That time it took less than one hour to disassembly and reassemble rear end.

So yes we all at times spend extra time on a repair job especially if it is a new type of repair. These are non billable hours.

And even the mechanic that works for the other man has a lot invested in his abilities and tools. It is called a career for a reason as we invest a lot of ourselves in it. Even after 40 yrs I am still learning new things. What irritates me is the DIYer that passes themselves as a professional mechanic of the equipment they are repairing.

I think there is an old saying that we work for the other man for 8 hrs a day to become our own boss then work 12-16 hrs per day. Last night for an example I was still up at midnight researching a problem. The shop was closed at 6 PM. I am even on here today working on another problem in between doing housework [cleaning, cooking, and laundry], grocery shopping, and yard work of my own.
 

Hammermechanicman

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I have had very few customers think what i have charged them be out of line. Most folks are suprised how much equipment and tools i have if they see my 24x24 little shop. Some folks have asked how much i have invested in tools and equipment. They are suprised when i tell them over 25k. There is a shop about 10 miles from me run by a real nice fellow. He charges twice what i do which is not out of line since he is renting a building. He has less tools and equip than me but he gets the job done. Is his work worth $80 an hour vs my $40 an hour? I guess that is up to his customers. He is still in business so i guess so. If you can service you own equipment that's great but the average joe or jill can't and they are usually willing to pay someone to just pick it up fix it and bring it back and they don't over think it or lose sleep over a lawn mower. The big dealerships around me all charge $98/hr and $100 pickup and delivery and during spring till fall they are backed up on service for 4 to 6 weeks. Most the stuff i work on they would not even touch. Lots of folks are willing to pay $300 to $400 to have the JD dealer do annual service on a lawnmower. I will do pretty much the same thing for around half that. Who is the better deal? Since the dealer gets over 100 times more work than me must be them. I guess it is all how you look at it.
 

bertsmobile1

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This rather reminds me of an old joke that goes rather like this
A farmer arrives at a remote water trough & finds the windmill jambed, trough empty & stock near death from thirst.
He spends all day & all night working on the windmil but just can not get it to pump water
So he calls the local stock & station agent to get them to send out the windmill technician
The tech arrives , wets his finger , places it into the wind then grasps the pipe in one bare hand
He then goes to his truck , gets a 12' ladders and a No 4 hammer, climbs the ladder, strikes the outer case and Blow me down, water starts to issue from the pump.
He packs up , the farmer thanks him & they drive away
A week latter he gets a bill for $ 568 and is ropeable as all the tech did was hit the case with a hammer and any one could have done that including himself.
He rang the stock & Station agent to check & they confirmed the $ 568 was the correct amount, so he demanded a detailed itemised account
The following arrived .

1) receive phone call, stop what I was currently doing and render it safe till I returned $ 5
2) drive 240 kilometers to do an on site job @ 20 ¢/km $ 48
3) diagnose the problem $ 5
4) Unload tools & set up ladder $ 5
5) striking outer case $ 5
6) knowing exactly where to strike outer case and what size hammer to use $ 500

And this is the case with mower repairs, any one can do it, it does not require a high degree of skill but you do need to know what to do & why you are doing it which the average machine owner does not

And FWIW, the local JD Dealer has a sandwich board out front which reads
"Pre-season safety check
Special price $ 275"

This does not include any actual work all you get for $ 275 is a piece of paper with a list of what needs to be done and the priority levels for doing them
One of the multi brand franchises has a similar sign except they are doing a bigger discount only charging $ 250 and giving a $ 50 gift voucher if you proceed with the work

As far as I can see it is just a clever way of doing repair quotes while making the customer think they are getting some thing.
and FWIW both of those prices are higher than my regular service fee .
 
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Hammermechanicman

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This rather reminds me of an old joke that goes rather like this
A farmer arrives at a remote water trough & finds the windmill jambed, trough empty & stock near death from thirst.
He spends all day & all night working on the windmil but just can not get it to pump water
So he calls the local stock & station agent to get them to send out the windmill technician
The tech arrives , wets his finger , places it into the wind then grasps the pipe in one bare hand
He then goes to his truck , gets a 12' ladders and a No 4 hammer, climbs the ladder, strikes the outer case and Blow me down, water starts to issue from the pump.
He packs up , the farmer thanks him & they drive away
A week latter he gets a bill for $ 568 and is ropeable as all the tech did was hit the case with a hammer and any one could have done that including himself.
He rang the stock & Station agent to check & they confirmed the $ 568 was the correct amount, so he demanded a detailed itemised account
The following arrived .

1) receive phone call, stop what I was currently doing and render it safe till I returned $ 5
2) drive 240 kilometers to do an on site job @ 20 ¢/km $ 48
3) diagnose the problem $ 5
4) Unload tools & set up ladder $ 5
5) striking outer case $ 5
6) knowing exactly where to strike outer case and what size hammer to use $ 500

And this is the case with mower repairs, any one can do it, it does not require a high degree of skill but you do need to know what to do & why you are doing it which the average machine owner does not

And FWIW, the local JD Dealer has a sandwich board out front which reads
"Pre-season safety check
Special price $ 275"

This does not include any actual work all you get for $ 275 is a piece of paper with a list of what needs to be done and the priority levels for doing them
One of the multi brand franchises has a similar sign except they are doing a bigger discount only charging $ 250 and giving a $ 50 gift voucher if you proceed with the work

As far as I can see it is just a clever way of doing repair quotes while making the customer think they are getting some thing.
and FWIW both of those prices are higher than my regular service fee .

I do some IT consulting for a select few customers. Just this week at one account the payroll oerson at the account forgot how to add a new employee to the sofware and send the info to the time clock and called me. 15 minute drive out and 3 mouse clicks and 15 minute drive home. Total time about 35 minutes. I charged them $150.
 

hlw49

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I have had very few customers think what i have charged them be out of line. Most folks are suprised how much equipment and tools i have if they see my 24x24 little shop. Some folks have asked how much i have invested in tools and equipment. They are suprised when i tell them over 25k. There is a shop about 10 miles from me run by a real nice fellow. He charges twice what i do which is not out of line since he is renting a building. He has less tools and equip than me but he gets the job done. Is his work worth $80 an hour vs my $40 an hour? I guess that is up to his customers. He is still in business so i guess so. If you can service you own equipment that's great but the average joe or jill can't and they are usually willing to pay someone to just pick it up fix it and bring it back and they don't over think it or lose sleep over a lawn mower. The big dealerships around me all charge $98/hr and $100 pickup and delivery and during spring till fall they are backed up on service for 4 to 6 weeks. Most the stuff i work on they would not even touch. Lots of folks are willing to pay $300 to $400 to have the JD dealer do annual service on a lawnmower. I will do pretty much the same thing for around half that. Who is the better deal? Since the dealer gets over 100 times more work than me must be them. I guess it is all how you look at it.
Sounds to me like you are selling yourself short and not charging enough. Afraid your customers will leave you and go to one of the higher priced shops? I think not. Is there anyone in your area that is cheaper than you? Then they might go to them if there is.
 

shurguywutt

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I have found the trades in my area have been terrible.

High prices, low quality work, there have been many times I have hired a professional to come out and do a job and then after they are finished and paid, I have to go back and fix something myself.

It really gives meaning to "if you want something done right, you have to do it yourself."

I am sure there are some good tradesman out there that take pride in their work, but from my experience at least, they are few and far between.
 

Rivets

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You want more than a few good tradesmen in your area, do your part. Every time you find a good one, become their biggest advocate. If we keep bad mouthing the tradesmen, it will only get worse, as the next generation will hear you and not want to enter the trades. Aren’t we starting to see that already? Let everyone you know that you highly recommend them and why. Isn’t that how you grew your business? I’m asked at least once a week who I would recommend to do certain jobs and I’ve got no problem saying those I feel are good and bad. I’ve found that one hand washes the other. Even though I’m 70+ years old and 95% retired, the good ones still recommend me to their customers. If they are really good I even offer to pay for the job if they are not satisfied. Had to do so once when a guy didn’t like his meal at my favorite restaurant, but the owner and I worked it out.
 

Hammermechanicman

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Do quality work and treat people right and they will be happy to pay for your services.
Do bad work and treat people poorly you will soon be out of business.

Whatever your skillset is strive to improve it every day. If you don't it means you really don't care.
$.02
 

StarTech

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Getting talented young folks in trade is a lot harder nowadays than in the past. Just much going on in theirs lives during the most critical time. This start at home allowing them to help. Then getting them in technical schools in high school to give them the basic training. We got to have grownups that are willing to recognize talent when they see it and guide the young ones into the respective field of learning a trade.

I started helping my step dad when I was a youngster going to first and second grade. He had me helping assembling V8s and then later constantly giving me puzzles to figure out. That gave me the bug to work on things. Even before I got into trade school I was working on my own equipment. Getting into high school trade school was a challenge as at the trade fair the recruiters were trying to talk me out of it because I was wanting go into the electronics field but I knew I was needing the training.

After I got out high school I took on an apprentice job (actually more like a regular job) working on office equipment. Something I never seen before I started. I spent 8 year learning that trade while further my skills otherwise working on vehicles and other equipment including the company's vehicles. Then I changed job due deteriorating work conditions and went into working on forms handling and financial equipment. I did that until the corporate fad of reducing the work force came along. From there I did got into the scrape metal processing business. That peter out when the economy turn sour and everybody tried to get into it. It just was worth it to get into fist fights over scrapes. That when I started my small engine repair business.

I do understand how the consumer can get a bad impression of repair shops as many of the larger shops just hire just anybody that can turn wrench as they just looking for a parts replacer. They prefer personnel that knows less than they do to do the work. Sorry business owners that the impression I got trying to find work after I deem redundant by Standard Register. Every place I went afterwards I was either over qualified or didn't have the certification they wanted. All I was wanting a job doing what I knew how to do. Most companies were actually afraid to hire me. I wasn't even wanting to go into business for as I knew all the headaches that I would face.

An example is the JD dealer that had tech so bad it was an embarrassment to me. When they start telling that their engine don't have oil pump even through the oil pressure light is flashing low oil pressure. My current customer came to me upon referral by another customer about the problem. It turn out to be a bad oil pressure sensor..

What got me out with them was when I had a Stihl warranty repair that they couldn't fix. The tech didn't even know how to test the two cycle engine. I received the hedger back in about the same condition as I took it in except they left the plug wire off. That when I decided just to repair it myself. It turned out the hedger was dieseling due a bad spark plug.

As for getting a reputation, do poor work and the word gets faster than when you do good work. Personally the only advertising I do is done by my customer referrals.
 
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