Flat-Rate vs. Time & Material

Many times customers have two pricing options when hiring an electrician: Flat-Rate or Time & Material. Transworld, Inc. Electrical Contractors has simplified these two pricing options so you have the ability to understand the best option for your future electrical service call.

Flat Rate Pricing

1. WHO ASSUMES THE RISK?

Flat-rate pricing has the contractor taking the risk which leads to them padding the quote so high that the homeowner is paying even more than it would have cost by the hour.

2. HOW ARE YOU CHARGED?

Many times a contractor will charge various fees such as a ‘show up fee’, ‘diagnostic fee’, or ‘travel fee’ averaging $100-$125 and only then will they inform the customer of the flat rate cost of the job.

3. CUSTOMER FOCUSED VS. SALES DRIVEN?

Technicians are typically paid off commission from the jobs they complete. This results in the technicians focusing more on sales training rather than skills training.

Time & Material

1. WHO ASSUMES THE RISK?

When charging by the hour, the customer is taking the risk that the job could take longer or be more costly.

2. HOW ARE YOU CHARGED?

You are charged an hourly rate so the customer ends up paying for the exact time and material that was used for their specific job, no more – no less. This is a fair deal for everyone.

3. CUSTOMER FOCUES VS SALES DRIVEN?

Electricians are paid an hourly rate depending on their expertise and experience. Their motivator is to make more money is to gain experience and training.

Who is most likely to oversell – an electrician working by the hour or a salesman getting paid a commission?