Who benefits from Fixed Price Plumbing?

When searching for a Plumber in Melbourne one of the key decisions you’ll need to make is whether you use fixed price plumbing or hourly rate plumbing.

The current trend in residential plumbing maintenance is the method of fixed rate plumbing, so we wanted to look deeper into the reported benefits and explain how the method works.

Below are some common examples that you might find when searching for a plumber in Melbourne and who we believe benefits (the plumber or customer – you).

Example 1

“With fixed rate pricing your total bill is determined by the plumbing job performed, not on the number of hours it takes to complete. For instance, fixing a blocked drain by a plumber can be done at a pre-set flat rate. This means that you will pay the same price, regardless of whether it takes 1 or 3 hours to complete the job”.

How is the pre-set flat rate calculated? Usually it is based off the following formula:

Average time to complete the job + average amount of material = Cost of Job
OR
Maximum time to complete the job + total amount of material needed = Cost of Job

This is not calculated on an individual job basis, it’s a pre-determined cost for the task. The fixed rate plumber MUST also have a risk margin factored in.

Our conclusion from reading the statement is you may be paying for time and material not required on your job as well as a risk margin, with the only benefit knowing what the job will cost.

Our Tip: Ask your hourly rate plumber for an estimate to put your mind at ease and save.

Who benefits from this example: “The Plumber”

Example 2

“Another benefit of the fixed pricing structure is that any extra charges (i.e. replacing any fittings, fixtures etc.) can be discussed before the job starts, giving the customer the option to arrange for these themselves”.

An hourly rate Plumber is no different, they should always discuss any extra work required prior to it being carried out, giving the customer the option to purchase any items they need themselves.

Who benefits from this example: “The Customer”

Example 3

“Fixed pricing allows for the ability to compare quotes, so customers can be confident they are choosing the best option. The plumbers’ hourly rate payment method makes it difficult to compare prices in advance since it is hard to predict the length of time it would take to complete a particular plumbing job”.

Fixed price plumbers generally charge a quote fee on average of between $60 - $90 dollars. If you book a fixed price plumber to change over your toilet and you don’t accept the quote when they are there at your home, you will be charged a quote fee. Sure, you can then compare quotes but at a cost of between $60 - $90 dollars and no work has been done.

 

Hourly rate plumbers will either send an estimator to your home and quote the job at no cost to you or supply you with an estimate when they’re at your home to change over your toilet.

Who benefits from this example: “The Plumber”

Example 4

“The only time the rate will vary with a fixed rate plumber is if something extra needs to be done. Sometimes a plumber may believe all that needs to be fixed is a blocked drain, but once he starts the work, he notices that the pipes need to be replaced. The price will increase if the pipe needs to be replaced, but this is only completed with the permission of the client”.

This is no different to an hourly rate plumber. If extra work or material was needed on a job, the hourly rate plumber would need to explain this to the customer and the cost of any extra work before commencing.

Who benefits from this example: “The Customer”

Example 5

“We guarantee all our customers pay the same price regardless of where they live. Our team will provide a written quote prior to carrying out any work so you know exactly how much it will cost before we start the job”.

Sure, a fixed price plumber will provide you with a written quote prior to carrying out any work but if you don’t accept the quote you will be charged a quote fee of between $60-$90 dollars.

If your job to replace a kitchen tap takes 1 hr and $120 of material and another customers job takes 2hrs and $220 worth of material, why should you pay the same price. As discussed above, the fixed price plumbing method has a risk factor built into it and so you may end up paying more.

Who benefits from this example: “The Plumber”

Conclusion:

Some of the advertised benefits of fixed price plumbing just don’t add up. We believe the method of fixed priced plumbing for smaller maintenance work was derived from the American model for service-based businesses. The advantages are for the business because it’s scalable, easy to systemise and increases the bottom line.

We believe it doesn’t benefit the consumer but ultimately that’s a decision you need to make. Our advice is to do your homework and go with the plumber that feels most comfortable.

Essendon Plumbing Services guarantees all its work with a 100% lifetime customer service guarantee. This means that if you’re not happy with your job, we’ll fix it or offer a full refund.

We’ve been doing this for over 33 years and our mission is to give you peace of mind, so call us on 03 9335 4755 for any plumbing needs.