Posted by Dean Olson on July 02, 2011 at 05:39:11 from (98.196.66.64):
In Reply to: Flat Rate posted by showcrop on July 01, 2011 at 18:20:01:
I went flat rate in my plumbing business years ago. Pretty much had to as customer complaints about slow workers was getting out of hand. Flat rate also greatly decreased my receivables as clients pd without complaining. They knew what the job was going to cost before we started. I left my guys pay hourly and they had to maintain an acceptable percentage of labor $ to revenue produced. The single biggest issue I had was employees. The quality available steadily declined over the 30+ years I was plumbing. I do not see the work ethic in the younger generation that I see in the older guys.
The last young man I hired quit because he demanded a raise and, bottom line he wasn't profitable at what I was paying him. That's ok to a certain extent as I am willing to spend some money on training and getting them the experience to get profitable. During the course of the conversation it seems he thought that I should pay him enough to have the lifestyle his parents had provided him. The concept of working your way up was not acceptable to him.
Business owners and employees both need to understand that it has to be a good deal for both parties involved or one of them is going to quit.
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