Re: FLAT RATE - is it fair ?

Posted by G-MAN on October 24, 2003 at 16:53:56 from (67.52.48.10):

In Reply to: FLAT RATE - is it fair ? posted by Rookie on October 24, 2003 at 15:27:46:

A true flat-rate works out well for both the shop and customer, when used correctly. I am a JD tech, and we use SPG times published by Deere for a lot of jobs. If I've done a job time and again, and am well familiar with it, yes, I can beat flat-rate by a fairly good margin, depending on the job. This does no more than make up for the times when we go over on a job, which is unavoidable, which can and does happen frequently. If you run into a problem machine, have a bunch of broken off bolts, have to do a bunch of cleaning (make sure your machines are clean when you take them to the shop - I've done jobs where it took longer to FIND the part I needed to replace, under six inches of gunk, than it did to replace it), or run into other problems, your flat-rate goes out the window. And about those extras, you should be informed when a job is going to take longer, BEFORE the extra work is began. That way, you know and the shop manager knows you know what's going on, which eliminates any confusion (or haggling) at bill-paying time. Some customers just say fix it no matter what, and some want to be keep informed constantly. I'd say you fit into the latter category, which I have no problem with. What I do have a problem with, is when I bust my butt to do the best job I can, get it done in good time and correctly, and a customer comes in and says that it should have been done faster. Particularly when he has no clue what was involved in the repair. Flat-rates are based on average technicians working on average machines in an average shop. Changing any one of those variables skews the whole system. All technicians are not created equal. If you want to feel like you're not being screwed, request that a technician that will use the full allotment of time do the job, then you'll know you're getting your money's worth. Most customers I deal with would rather pay the little bit extra to have their machine done faster, particularly during the busy times of the year. Trust me, for every flat-rate job a shop makes money on, there is probably another they're losing money on. Just a little perspective from a guy on the other side of the fence.

Follow Ups:

• Re: Re: FLAT RATE - is it fair ? RayP(MI) 17:14:17 10/24/03 (1)
  • Re: Re: Re: FLAT RATE - is it fair ? Eric Rylander 17:48:28 10/24/03 (0)

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