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Tried a flat monthly retainer instead of hourly billing and it completely changed how clients treat me
Been running my electrical contracting biz for 7 years and always did hourly. Switched to a flat $2k/month retainer for a commercial client in Pittsburgh last quarter. They stopped nitpicking every 15 minute increment and actually call me about preventive stuff now. But i underbid myself bad on a warehouse job and ate $600 in extra material costs. Do you guys build a buffer into your retainers for surprises or just eat it sometimes?
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phoenix5735d ago
Oh man, I used to think flat fees were a trap but you might be onto something here! The part about clients actually calling for preventive stuff is huge, that never happens when they're watching the clock tick. For the buffer question, I'd say build in maybe 10-15% extra on materials and just be upfront that it's for surprise costs, most people get it.
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calebc405d ago
Did you ever see that study about how flat fee clients are way more likely to actually do the small maintenance stuff? I read it in some trade magazine a while back. It said something like 65% more follow-through on minor repairs versus hourly clients who'd rather just wait for things to break. That totally backs up what you're seeing with preventive calls. For materials, you're spot on about being upfront. I usually just tell people "I'm padding this by 15% so if we hit a nasty surprise in the wall, you're not getting hit with a surprise charge and I'm not eating the cost." Most folks actually appreciate the honesty.
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jessica7074d ago
Last spring I had a client who called me out for a tiny drip under their sink. Took me 15 minutes to tighten a connection. With my old hourly setup they would have let that drip rot the cabinet for months. Flat fee made that call happen because they knew the price was already set. On the material buffer, I add 12% and just say it covers the weird stuff you find in old houses like corroded pipes or weird wiring. People respect the honesty way more than getting a surprise bill later.
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