Running the Business · Part 2
Pricing models: hourly vs. a flat-rate price book, the service fee, and good/better/best, inside the rules for service calls
How you price is a business decision. What the price has to look like on paper is law, and for the most common plumbing job, the service call, the law is specific: one service charge, a stated contract price, no payment until the work is done, no work beyond the problem the customer called about. This lesson lays out the three pricing models a plumber can run, hourly, flat-rate price book, and good/better/best options, with the real tradeoffs of each, and then maps each model onto the two contract forms California allows, so the way you price never puts you on the wrong form.
What the full lesson covers
- Hourly is easy to compute and hard to sell; every slow minute is a fight. A flat-rate price book prices the task, not the time, which customers prefer and which rewards you for being good. Good/better/best is a price book with options, and it raises the average ticket honestly when the options are real.
- A service charge (trip fee, dispatch fee, diagnostic) is lawful and normal; on a service and repair contract the law allows exactly one, and the contract must say so in the statutory sentence.
- B&P 7159.10 lets you use the short service-and-repair form only if the job is $750 or less, the customer called you, you sell nothing beyond what fixes the problem, and you take no money until the work is complete. Fail any one and the job is a home improvement contract under 7159, with its down-payment limits and progress-payment rules.
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More lessons in Getting Work
- 1Where the first ten jobs actually come from
- 2Supply-house relationships and credit: the account, the terms, the personal guarantee, and the notice your supplier sends your customer
- 3Subbing to general contractors: how to get on the list, what they check, and the four clauses in the subcontract that matter
- 4Property managers, home-warranty companies, and realtors: volume vs. margin, and the paperwork each one lives on