- Flat rates are based on averages. On those occasions when the time runs way over - the company loses. On occasions when the task is easy - the customer loses. Either way, someone loses. This is hardly a practice that instills customer satisfaction - or reasonably accurate profit expectations. It is in fact, nothing more than guessing.
 Most "Letters to the Editor" of our best trade magazines praising flat rate, mention or allude to the fact that before the writer switched to flat rate - they also knew nothing about figuring their costs of doing business. The flat-rate columnists then distort that by suggesting it was flat rate that "saved" the day. In fact, we all know that knowing costs is crucial. Flat rate has little to do with success (or failure). Knowing your costs of doing business has always had everything to do with success - whether based on flat rate or time and materials.
- A few have noticed that using flat rate adds a completely avoidable cost to both customer and contractor. Many states require bundled labor and materials (as in flat rate schemes) to be taxed on the entire invoice - not just labor (or in some cases materials) expense. This unavoidable inequity of flat rate pricing, suggests that if flat rate advocates were truly interested in costs and customer care, charging sales taxes when not required - is hardly the basis to show it.
- Just because flat rate books are available from a few companies that create them, does not make them even remotely accurate. Using higher and higher profit margin percentages to create a healthy projected balance sheet - because of inaccuracies of those flat rate tables is what does happen. The result is two totally inaccurate results becoming averaged - misleading the user into false profit figures based on multiple wrong pricing strategies - which hopefully average out.
- Flat rate advocates always over-emphasize appearances, clean trucks and phone manners as crucial. The only thing that is truly "crucial" is the quality of the work. All else is purely secondary!
- The suggestion that all customers like knowing the price before the work is done is absurd. The price is secondary to the quality of the work - period. An estimate for a new boiler is not in any way similar to the points discussed - even though some flat rate advocate will attempt to suggest it is. Flat rate and a firm estimate/proposal are not even remotely similar.
- Firm prices for complete removal and replacements - or entirely new work - have no linkage to typical service calls; be they flat rated or T&M.
 Implementing flat rate pricing frequently results in the following evolution:
- Upon implementation, profits rise dramatically - reinforcing the notion that flat rate may actually work.
- After a year or so, a few long time customers stop calling and realize the same or better service is available elsewhere at better rates. They realize someone has to pay for all the fancy new uniforms and "new company" look. They realize it's them.
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