Posted by u/converting_shop
Switching from T&M to flat rate. Where do I start?
Answered by Ask a Shop Owner ·
Been time and materials 12 years. Losing money to fast techs. Ready to switch. Overwhelmed by the flat rate books.
u/askashopowner Owner-operator advisor
Top answer
Do not buy a flat rate book on day one. Take your top 30 tickets from the last year. Look at total revenue and total hours by task (toilet swap, water heater install, drain snake). That gives you your real numbers.
Build your book from those 30 tasks. Everything else, stay T&M for now. Trying to price every possible job on day one is where owners quit and go back.
Price for a $250 to $300 effective billing rate per hour, minimum. Techs who see flat rate for the first time freak out at the numbers. Show them what they will make on spiff. They calm down inside a week.
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