How can I compete with companies offering interest free credit?

[Jock Spanners]

Evening all,

I serviced a boiler and gas stove for some customers in September and warned them that their 16 year combi probably wouldn't survive the winter. They asked me for a quote and I gave them one for a Baxi then heard nothing until today when they asked me to fix their gas stove. So when I turned up there's a new Worcester on the wall. I wasn't happy - this is a family I've looked after for years - leaks, breakdowns the lot. I told them I could have fitted a Worcester. He said his wife had wanted one and got it on interest free credit. So I came away feeling miffed and undervalued. I felt like telling them to get whoever fitted the boiler to fix their stove. Then I thought: 'How can I compete with companies offering interest free credit?'

 

[Jock Spanners]

Thanks guys. My dad's dying so I just needed to vent some steam. Ironically I had exactly the same scenario this morning - this time my customer has gone with British Gas. So I has a look on the BG website and found they're offering two years interest free credit on all new boilers. Incidentally - my first customer is the CEO of a county council on a six figure salary. I guess with him it's all about the bottom line and to hell with the consequences (making people redundant etc). I still feel like telling him to get whoever fitted his boiler to fix his stove. Or maybe should I just charge him £200 for my time like British Gas would?

 

[Harvest Fields]

Sorry to hear that mate. Hope he is at least comfortable.

 

[Best]

Also sorry to hear that. Difficult time and you realise customers are not all considering you.
Just put your prices up, mainly onto the wealthy types that don’t care for you as a reliable trades guy.

 

[Harvest Fields]

Also sorry to hear that. Difficult time and you realise customers are not all considering you.
Just put your prices up, mainly onto the wealthy types that don’t care for you as a reliable trades guy.

I am so the opposite to this.

 

[Best]

I am so the opposite to this.

As in, charging certain customers more?

 

[Harvest Fields]

As in, charging certain customers more?

I charge all customers the right amount. Irrelevant of if they didn’t have me in to fit the new boiler. Would rather have a customer for service and breakdown than not at all.

 

[Welder]

Thanks guys. My dad's dying so I just needed to vent some steam. Ironically I had exactly the same scenario this morning - this time my customer has gone with British Gas. So I has a look on the BG website and found they're offering two years interest free credit on all new boilers. Incidentally - my first customer is the CEO of a county council on a six figure salary. I guess with him it's all about the bottom line and to hell with the consequences (making people redundant etc). I still feel like telling him to get whoever fitted his boiler to fix his stove. Or maybe should I just charge him £200 for my time like British Gas would?

Sorry to hear that Jock. Now I feel a dick!

Different ball game. Charge him more.
However, don't do it all at once otherwise he'll suss it. Up it by 10%, then 15% then 20% over the next times you go AND just be slower, apparently more thorough, each time you go or just talk the job up - then enjoy the benefits whilst being super sincere...

Bear in mind though that BG are a marketing machine playing on people's fears, uncertainties and doubts with that friggin penguin every hour of every day. They spend millions because it has a huge payback for them.

 

[Welder]

I charge all customers the right amount. Irrelevant of if they didn’t have me in to fit the new boiler. Would rather have a customer for service and breakdown than not at all.

I do get that H and I respect you for it.

However, I also completely understand how Jock is 'used' to do the small jobs because people like this know the BiG boys don't want the small jobs. So, they keep a 'pet plumber' dangling. I literally overheard a conversation around this theme one time on a job. I walked out and never went back although I promised to. CBA. We are all human beings and regardless of our race, colour, creed or circumstance in life we deserve a little respect.

 

[Best]

I charge all customers the right amount. Irrelevant of if they didn’t have me in to fit the new boiler. Would rather have a customer for service and breakdown than not at all.

I suppose if you have been charging proper rate to the customer, then that is ok.
If the customer had used you for a few favour jobs and then dumped you for the lucrative job, I would not be happy.
But my head tells me to charge more, but I just seem to charge same rate I must confess.

 

[Harvest Fields]

With people like that though mate. They have no loyalty. I never turn work down. I would rather have a house on my books for something rather than nothing.

 

[Harvest Fields]

I suppose if you have been charging proper rate to the customer, then that is ok.
If the customer had used you for a few favour jobs and then dumped you for the lucrative job, I would not be happy.
But my head tells me to charge more, but I just seem to charge same rate I must confess.

I understand mate. I was just saying what I do, that’s all.

 

[Welder]

With people like that though mate. They have no loyalty. I never turn work down. I would rather have a house on my books for something rather than nothing.

This is what makes us different. My view is not to sully my life with them. Someone decent always replaces them

 

[Harvest Fields]

This is what makes us different. My view is not to sully my life with them. Someone decent always replaces them

That’s what I love about the world mate. (We are all different)

 

[Best]

I do get that H and I respect you for it.

However, I also completely understand how Jock is 'used' to do the small jobs because people like this know the BiG boys don't want the small jobs. So, they keep a 'pet plumber' dangling. I literally overheard a conversation around this theme one time on a job. I walked out and never went back although I promised to. CBA. We are all human beings and regardless of our race, colour, creed or circumstance in life we deserve a little respect.

Very apt that description “Pet Plumber dangling”.
Sums it up to describe my experiences.

 

[Deleted member 32524]

All the best, sorry to hear about your Dad. Very few people never mind customers know about loyalty. Always charge as much as you can and everyone pays the same rate. I have stopped with set price servicing, for example, and now charge all of my time. How many times have you been on a boiler for alot longer than planned cos it's a mess. I don't loose out any more.