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Company Types

There are two different styles of billing/Service companies.  Flat Rate and Time & Material (T&M).  I've worked for both types.  Below is my personal opinion of the two types that I have worked for in Denver.  I mention Good (+) and Bad (-) points.

Time & Material
Flat Rate
Parts + Typically the trucks are equipped with smaller items to fix your problem.  They are prepared for most common problems.  With a good description of the problem the plumber will usually show up with the correct parts.

- Toilets and such are not carried.  There is a chance of not having the faucet or toilet you want and you have to wait for the plumber to pick up the part and return, sometimes charging you while picking up the part.  In this case it would be wise to pick up the part and have it waiting to be installed.  Since you bought the part the company won't warranty it.
+ The trucks are greatly stocked with large parts, faucets, toilets etc.

- Trucks don't carry a lot of small parts, washers, seats, springs etc.  There going to try to make you buy a new faucet than repair the one you have. Commission, commission, commission.
Salary

+ Usually paid by the hour not by the job.  The job won't be rushed in order to get to the next commission job.

- If you have an inexperienced plumber it may take longer than a good seasoned plumber costing you more.  Also if you have a plumber scheduled late in the day, your job might be rushed because that plumber wants to get home.


+ None.

- Employees are paid by commission or salary plus commission.  The job may be rushed or short-cutted so the tech can get in as many jobs as possible in one day.  You're going to be pressured into having more done than your original problem. Sell, sell, sell.  
Pricing + Usually less than a Flat Rate company.

- Not sure how much the job will be by the time the plumber is finished.
+ You know how much the job is going to cost no matter what kind of problems the plumber runs into.

- In most cases bills will be higher, at least 2 times, than a T&M company.  The invoice is so high that the company doesn't get much word-of-mouth advertising so they have to do some heavy advertising.  Of course you end up paying the marketing costs, the plumbers commission plus a company profit.  In almost all cases the Flat Rate company I worked for was 2 times higher than the T&M companies that I worked for.  The plumber can make a warranty call and still make a profit.
Skill

+ Your more likely to get the correct licensed plumber out to your house because less time is spent on sales techniques and more time on skills.

- None.


+ None.

- The company I worked for had apprentices installing water heaters and making other major plumbing repairs solo with no licensed plumber on site.  A major violation of Plumbing Codes.    Because the prices are jaw-dropping high, the company is more likely to send out someone with sales skills before plumbing skills.  Remember this is only one flat rate company that I worked for.  I'm sure other companies follow state regulatory codes. Ask to see the plumbers license if having major work done.
Training

+ I've been in product update meetings and meetings on installation guides, new techniques, etc.

- None.


+ None.

- The company that I spent a year with had weekly meetings.  Not once was it about plumbing.  It was to watch tapes, act out in role playing and general sessions on how to schmooze the customer and sell, sell, sell.

To sum up:  It's a gamble.  If you have a good plumber, T&M is the way to go.  If you get a bad plumber Flat Rate is the way to go because of the price guarantee.   I won't go back to a Flat Rate company because their  focus is hard sales.  The T&M companies have continuous plumbing training to better serve (not sell) the customer.  I'm not saying all companies are like this. This is purely my personal experience.