Since a flat rate model can help you increase productivity, close more jobs, and grow your home services business, it’s important you know how to break through common barriers that can keep you from succeeding with flat rate.
Change is hard, whether it be adapting to new leadership, using a new software, or implementing a different pricing structure. Moving from time and material pricing to a flat rate model, for example, will certainly put your home services business in a better position to improve profitability, but that doesn’t eliminate the chance of you struggling with the change. If you’re having trouble seeing success with flat rate, consider the following:
- Do you explain it to your customers correctly to reduce pushback? Explain to your customer that with flat rate, the price they’re given up front is the price they will pay. That means if they’re working with a slower or inexperienced tech who takes longer to complete a repair, that added time on the job won’t affect the cost for the homeowner. If the homeowner asks what your flat rate price is based on, or pushes back on the price you present, try saying: “Our flat rate system is developed by an independent provider based on national repair costs meaning it is fair to all customers.”
- Have you contacted your flat rate vendor and asked for help? If you use Profit Rhino’s flat rate platform, for example, you’ll have several support resources at your disposal designed to help show you how to succeed with flat rate pricing. And since Profit Rhino’s flat rate tools are managed by experts with over 30 years of flat rate experience, you can feel confident that you’re working with the most qualified provider in the industry to help get you up to speed with flat rate.
- Have your techs bought into the program? If they struggle using flat rate, they will blame the tool and want to eliminate it, making it crucial that they’re correctly trained. If you have a tech on your team who is a cheerleader and driving the program, leverage them to get others on board. Plus, having one tech act as a knowledge base can help other techs learn the platform – without having to go to their boss for help. Plus, flat rate is designed to help a company increase profitability, and if the company is making more money, they’ll be able to provide better things for techs such as benefits and income.
- Do your techs understand that using flat rate takes the pressure off of them? Since using flat rate means providing the homeowner with pricing before the work begins, the customer will no longer feel the need to watch the clock. And without the customer breathing down their neck, the tech can concentrate on the quality of their work – not their speed.
The bottom line is that tens of thousands of contractors are using flat rate today and have made over 100 million repairs in the US using flat rate programs. Flat rate can help you execute more quality repairs, improve your customer’s experience, and skyrocket profitability, so it’s pretty clear that the benefits are well worth the learning curve. Plus, customers want and love it because they feel more in control. Ultimately, the techs who complain the most about flat rate become the biggest fans when they learn how to use it properly. And the customer won’t blame them if the price is too high, which is just an added bonus.
By using Profit Rhino’s powerful flat rate pricing tools and accurate price books, your home services company can make the transition to flat rate pricing as seamless as possible. In fact, Profit Rhino can help you get up and running in just one day. Sound too good to be true?