View Full Version : billing question
11-14-2009, 09:10 PM
When billing customers, do you break down how you came up with the final cost for them to see? Most guys on this site recommend not telling them the hourly rate, but using your estimated time to figure your own cost plus the other variables... If you give customer a flat rate or just the final number, what do you do if they question how you came up with the price?
11-14-2009, 09:16 PM
Hi. are you asking about a maintenance bill? If you are than that should have been discussed before service starts. For instance $25 per cut times 4 cuts. Total due $100 plus what ever your tax is.
11-14-2009, 09:20 PM
I guess I was thinking a one time job, fall clean up for example, or even when giving estimates. Sorry for not being more specific, thanks.
These are the exact types of issues that keep contractors distracted while growing their businesses. The most important thing you need to learn if you are going to grow your company, is that you are in the business of selling manhours. As many of them as you can possibly sell! Figure your costs of doing business, add a fair profit margin and come up with the manour rate that you charge for your services. If a customer ever asks how you came up with your price, you should be able to tell them how many manhours you calculated it will take to do the job and not feel embarressed to tell them how much an hour you are charging them for your services. Nothing frustrates a customer more than when a contractor can't tell them "why" he's charging what he's charging.
Here's a link to a video that will help you establishing your manhour rate.
If I can help you with anything else, don't hesitate to ask.
11-16-2009, 10:10 AM
Thanks, Tommy. The video was great, really helpful, and answered all my questions on the topic. I appreciate it.
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