- Having turned a family business into a now stagnant enterprise - he then sells what little is left to former employees, a consolidator or perhaps a fellow competitor. Or, on occasion, enough equity remains to buy into a new opportunity akin to a "franchise." The new franchise name allows one to distance oneself from the "baggage" of the past - and suggests a promising new beginning. Upon closer examination however, the new franchise is nothing more than a syndicated version of the same old flat rate business plan.
Occasionally, the former flat rater/seller turns to writing about his flat rate "experience" - where he finds a ready audience in the world of "get rich quick schemes" and resurrects himself as a self-proclaimed savior of sorts. This is done not by what his actually accomplishments, but by identifying himself as an innovator and un-credentialed and self-proclaimed "expert". What he says, writes and can sell in the way of "get rich quick" schemes (which always seem to find an audience somewhere and somehow) are not all that uncommon. Wall Street is paved with such activity these days.
- Flat rate advocates suggest time and material pricing are old fashioned and that flat rate is new and modern. Ethical business standards and high quality work are not subject to such flawed logic or comment. Flat rate has failed - and been around since the 5-cent ferry ride to New York City came into being a century ago - making it neither new - nor modern.
No one suggests all T&M contractors are ethical - the flat raters should stop suggesting someone did. No one suggests all flat raters are thieves - so please stop suggesting someone did. The method of pricing however (T&M vs. flat rate) is what is suspect. T&M is based on the notion that the client has the right to know what he is paying for. Flat rate is based on the notion that if the customer knew what the labor rate actually was - he would not accept it.
The point now is - and has always been, that customers have the right to know what the labor as well as materials charges are, as well as all the details in between. And the consumer protection laws of many states - demand they do.
© Ken Secor

Ken Secor
"Plumbers Protect The Health Of The World."
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