Flat Rate VS Hourly Rate Pricing - What's Best?
Confused about how you are going to be charged or quoted by your chosen tradie?
Different companies can charge using different methods. Generally, you will be charged using hourly rate or flat rate pricing. But which method is best and which one will benefit you?
Here’s the breakdown:
What is hourly rate pricing?
When a business is using hourly rate pricing they will charge you for each hour they take to complete the job.
In some cases this can work to your benefit as if the job is a quick fix you will not have to pay much for it.
However, being charged by the hour can have its pitfalls.
Firstly, you may not get an entirely accurate price for the job before the tradie commences work. This means it can be hard to budget for.
Second, there is always the risk that tradies may work slowly if they are charging by the hour in order to hit different price increments.
This method of charging can also cause large jumps in price if there are unforeseen issues or challenges in the work to be completed as you will be charged for the extra time required to complete the job.
What is flat rate pricing?
Flat rate pricing means there is a set pricing rate for a certain task or job regardless of how long it takes.
You will be quoted a set price for the job prior to any work commencing with each task within the job being listed for a specific amount.
Here is a breakdown of how flat rate pricing will benefit you:
4 Benefits of Flat Rate Pricing
- Clear and Transparent Pricing
One of the most significant benefits of flat rate pricing is the transparency and clarity it provides.
When you receive a flat rate quote, you know exactly what you'll be paying upfront. This eliminates any surprises or unexpected costs that could come with hourly rate pricing.
- No Surprises
Hourly rate pricing can be a bit of a gamble for clients. If the tradie encounters unexpected problems or the job takes longer than anticipated, you may end up with a bill that is much higher than you expected.
With flat rate pricing, you won't have any surprises. The price you're quoted is the price you'll pay, regardless of any unforeseen circumstances that may arise.
- Increased Efficiency
When tradespeople work on an hourly rate, they may be incentivized to work slower to increase the billable hours.
With flat rate pricing, the tradie is motivated to work as efficiently as possible to get the job done quickly and effectively. This can result in faster completion times and less disruption to your daily routine.
- More Accurate Budgeting
With flat rate pricing, you can budget more accurately for your needs.
You will have a good idea of what you will be spending on electrical work without any uncertainty or surprises.
This allows you to budget for other expenses more effectively.
Book a Flat Rate Pricing Electrician in Melbourne
181 Electrical offers fair flat rate pricing for all quotes and work completed.
This helps us to provide clear and transparent pricing, eliminate surprises, increase efficiency, enable more accurate budgeting, increase satisfaction and provide greater value for money.
Contact us using the button below or on 0403 734 299 to book an appointment today.