Hey there! Appreciate the video and explanation of the piece rate system. How would you handle travel time for techs to/from customers' homes? I wouldn't think this would be included in the flat-rate price of a job due to the fact that some homes may be 5 mins from your shop vs 45 mins, etc.
Great question! You have to factor drive time into your honest hourly rate. We teach how to calculate all of this in the Success Academy. You're in luck, we are offering a 14 day free trial! Check it out here: www.plumbingbusinesssuccess.com/14business
Hey Debra, you would keep track of actual hours worked for each tech (using a timesheet or time clock in your scheduling management software) and then compare what their pay would be using actual hours worked times your state minimum wage (including time and a half for overtime hours) versus what their piece rate pay is. Whichever is greater, pay them that.
We had a contractor that we had an agreement with. He pulled the permits and did the dig. Our tech was the "lead" on the job. We collected from the customer and paid the contractor.
Piece rate is just a tool for a business to guarantee that their workers don’t take breaks/ lunches and it be legal. It’s a scam that encourages poor quality of work. The piece rate is set to pay if the job goes perfect and fine but it’s almost never like that. I don’t know how many times I’ve had to spend a ridiculous amount of time cutting and putting in studs, dealing with other trades being in the way, the company itself not providing the properly materials, etc. If companies paid an honest piece rate then this wouldn’t be a problem because they don’t because of $$$
Yeah it’s good in all but there’s techs that will take short cuts to get more work to get more money. Theirs also dispatch or service advisor that will give more work to a favorite tech and other techs will resent the work or company and bosses. Flat rate or piece rate pay is for bosses to make more money but techs will have to worry about what their checks will be at the end of each week. It’s a busted system and a scam. Don’t matter if your really good or work hard and work smart. An hourly person will work hard and work smart if u set values and a bonus at the end of the month. Also each hourly person is equal, except for managers and shop bosses of course. If it’s flat or piece rate everyone wants to do more than the next person and brag how they’re faster and better. Then a competition ensues and then it’s quantity over quality not quality over quantity
Then you need to hire more ethical people. The system is fine, it is you hiring anyone and everyone, then crying because you hired Hitler because you were not reading applications and gauging the person on the other side of the table. Also you as the contractor, should nip that in the butt the first call. Oh your plumber replaced a fill valve for 12,000 dollars? And you did not do anything? Who is the bigger crook?
piece rate is great and all until your foreman calls you in and they aren't even ready for you... and god help you if that happens three weeks in a row...
Really interesting and helpful information, and then a screwball, talk radio drivel political rant that means this video is unshareable with my business partner and anybody else who expects professionalism and credibility.
Scouring the word wide web for answers, guess who pops up on top of my UA-cam every time!? 😆Want to give a shout out to The Million Dollar Plumber! 🙏
Paying my guys commission only the whole time but as soon as work is slow.....I hittin the law books. This is the answer
Thanks for catching the show!
I loved this, great work man. Definitely solves some issues of mine trying to understand the piece work system.
Thanks man! Glad you got something out of it!
Hey there! Appreciate the video and explanation of the piece rate system. How would you handle travel time for techs to/from customers' homes? I wouldn't think this would be included in the flat-rate price of a job due to the fact that some homes may be 5 mins from your shop vs 45 mins, etc.
Great question! You have to factor drive time into your honest hourly rate. We teach how to calculate all of this in the Success Academy. You're in luck, we are offering a 14 day free trial! Check it out here: www.plumbingbusinesssuccess.com/14business
Also, how does this work for labor and wage laws regarding overtime?
Hey Debra, you would keep track of actual hours worked for each tech (using a timesheet or time clock in your scheduling management software) and then compare what their pay would be using actual hours worked times your state minimum wage (including time and a half for overtime hours) versus what their piece rate pay is. Whichever is greater, pay them that.
How did you sub out the sewer work?
We had a contractor that we had an agreement with. He pulled the permits and did the dig. Our tech was the "lead" on the job. We collected from the customer and paid the contractor.
Whos doing the adlids
What about trainings, meetings, and other stuff?
Pay your techs their hourly rate for anything you require them to attend or do.
Love it. I’ve told a lot of people about this.
Piece rate is just a tool for a business to guarantee that their workers don’t take breaks/ lunches and it be legal. It’s a scam that encourages poor quality of work. The piece rate is set to pay if the job goes perfect and fine but it’s almost never like that. I don’t know how many times I’ve had to spend a ridiculous amount of time cutting and putting in studs, dealing with other trades being in the way, the company itself not providing the properly materials, etc. If companies paid an honest piece rate then this wouldn’t be a problem because they don’t because of $$$
Yeah it’s good in all but there’s techs that will take short cuts to get more work to get more money. Theirs also dispatch or service advisor that will give more work to a favorite tech and other techs will resent the work or company and bosses. Flat rate or piece rate pay is for bosses to make more money but techs will have to worry about what their checks will be at the end of each week. It’s a busted system and a scam. Don’t matter if your really good or work hard and work smart. An hourly person will work hard and work smart if u set values and a bonus at the end of the month. Also each hourly person is equal, except for managers and shop bosses of course. If it’s flat or piece rate everyone wants to do more than the next person and brag how they’re faster and better. Then a competition ensues and then it’s quantity over quality not quality over quantity
Then you need to hire more ethical people. The system is fine, it is you hiring anyone and everyone, then crying because you hired Hitler because you were not reading applications and gauging the person on the other side of the table. Also you as the contractor, should nip that in the butt the first call. Oh your plumber replaced a fill valve for 12,000 dollars? And you did not do anything? Who is the bigger crook?
You're describing flat rate.
piece rate is great and all until your foreman calls you in and they aren't even ready for you... and god help you if that happens three weeks in a row...
Coach
Hey Larry, here's the link to check out my Million Dollar Plumber Success Academy: themilliondollarplumber.com/success-academy/
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The piece rate system should be illegal and one day it will be it only saves the company money but it fucks the employee!
Really interesting and helpful information, and then a screwball, talk radio drivel political rant that means this video is unshareable with my business partner and anybody else who expects professionalism and credibility.
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Hey Kurien, thanks for catching the show. Click the link below to grab my FREE Blueprint:
www.plumbingbusinesssuccess.com/blueprint1
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Hey, thanks for catching the show. Click the link below to grab my FREE Blueprint:
www.milliondollarpro.com/free
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