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Don't complain about the Plumber getting $225 per hour


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The other day, a local fellow shop owner, was complaining to me that his plumber just charged him $225 labor for a house call.  My response was, "And why do you have an issue with that?"

I know this plumber; he is very successful, in high demand in the area, does great work and provides a VALUBALE service. Does this sound familiar?  You bet....sounds like you and your business!!!

When the day comes that all of us truly know what we are worth and charge for it, that will be the day when all us raise the level of the auto industry, begin to attract more people to us, pay our employees better, build for our future and go home with the pay we deserve.

I know this is going to cause controversy....so let's start the conversation.

 

 

 

 

 

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My entire concept of this business changed the day I was forced to move the first time, about 8 years ago.  I learned that every tradesman gets paid, but us.  That was the day I decided that things have to change if I wanted to achieve success.  To give this some context, we have new lifts and equipment installed in a building we moved into across town.  While having some problems with the heating unit, which was brand new at the time, I was billed something along the lines of $225 for the first hour and then $1xx for each subsequent hour (forgot exact number but it's not necessary for the lesson I learned here).

When I asked about what I thought was exuberant pricing, the explanation given to me was... "My guys need t want to come into work in the morning, in order to do that I have to properly motivate them.  In order to properly motivate them I need to pay them.  In addition to paying them... I need to make a profit." Regardless of how wrong he was in this scenario, because we were discussing new units that broke.... he was right about one thing.  That's the price that his business needed to thrive, not survive.  

It lead me to embarking on a journey of asking a lot of tradesman what they charged and about their business.  The most successful ones, with the most overhead... didn't play games.  They had serious prices, because they had serious responsibilities to adhere to. Most of the ones that didn't, had little to no overhead.  Once I decided what kind of business I wanted to run... the rest started to follow suit.

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4 minutes ago, CAR_AutoReports said:

My entire concept of this business changed the day I was forced to move the first time, about 8 years ago.  I learned that every tradesman gets paid, but us.  That was the day I decided that things have to change if I wanted to achieve success.  To give this some context, we have new lifts and equipment installed in a building we moved into across town.  While having some problems with the heating unit, which was brand new at the time, I was billed something along the lines of $225 for the first hour and then $1xx for each subsequent hour (forgot exact number but it's not necessary for the lesson I learned here).

When I asked about what I thought was exuberant pricing, the explanation given to me was... "My guys need t want to come into work in the morning, in order to do that I have to properly motivate them.  In order to properly motivate them I need to pay them.  In addition to paying them... I need to make a profit." Regardless of how wrong he was in this scenario, because we were discussing new units that broke.... he was right about one thing.  That's the price that his business needed to thrive, not survive.  

It lead me to embarking on a journey of asking a lot of tradesman what they charged and about their business.  The most successful ones, with the most overhead... didn't play games.  They had serious prices, because they had serious responsibilities to adhere to. Most of the ones that didn't, had little to no overhead.  Once I decided what kind of business I wanted to run... the rest started to follow suit.

Well said!  In my opinion, you hit the nail on the head!  Great comments!

 

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