ABOUT OUR PRICING
At Reactive Plumbing, we believe in transparency, fairness, and sustainability when it comes to pricing our services. Unlike traditional pricing models that often rely on hourly rates, we’ve adopted a margin pricing system that reflects the true costs of providing high-quality plumbing services to our valued clients.
Why Not Hourly Rates?
Hourly rates can be misleading. They might seem lower at first glance, but they don’t accurately reflect the full cost of delivering a service. Businesses operating on hourly rates often underestimate their expenses, leading to sustainability issues. These businesses might not account for all their operating costs, from materials to overheads, which can result in undercharging or the need to cut corners. At Reactive Plumbing, we aim for longevity and quality, ensuring we’re here to serve you today and in the future.
Our Margin Pricing System
Our margin pricing system is designed with honesty and sustainability at its core. It allows us to cover our labor, materials, and overhead costs comprehensively, ensuring we can continue delivering top-notch services without compromising on quality. Here’s how it works:
Example Job Breakdown
To make our pricing as transparent as possible, let’s take a look at an example job costing $1,000:
- Sell Price: $1,000 (100%)
- Labour: $300 (30%)
- Material: $200 (20%)
- Total Cost of Goods Sold: $500 (50%)
This means 50% of the job cost covers direct expenses. The remaining 50% is allocated to overhead expenses crucial for delivering our services:
- Vehicles & Repairs: 5%
- Insurances (Workers Comp, Public Liability, and Vehicle): 5%
- Office Building: 5%
- Fuel & Tolls: 3%
- Admin Team: 12%
- Marketing: 10%
After covering these essential expenses, we aim for a 10% NET profit margin. This margin is not merely profit; it’s the fuel that enables us to invest back into our team, equipment, and services, ensuring we can continue providing exceptional service and remain a robust, sustainable business.
To help you better understand how your investment is allocated, here’s a graph visualizing the distribution of costs for a typical job priced at $1,000:
The graph clearly illustrates how every dollar is spent, ensuring you know exactly what you’re paying for when you choose Reactive Plumbing.
Why This Matters
Choosing a plumbing service that utilises a margin pricing system means you’re opting for a provider that understands the true cost of delivering quality service. It means supporting a business committed to sustainability, quality, and fairness. At Reactive Plumbing, our pricing reflects our dedication to these values, ensuring we can continue to serve our community effectively and efficiently.
HOW MUCH DOES EACH PLUMBING SERVICE COST?
30 minutes prior to the arrival time, your technician will contact you. Once on site, your Reactive Plumbing technician will listen to you, assess your needs, and then evaluate the works and requirements it will take to earn your complete satisfaction. Then we will provide you with a fixed, upfront price with several different options.
We will help you understand our recommendations and answer any questions you have as we help you choose the most appropriate option for you and your budget.
What if it’s an Emergency?
SERVICE GUARANTEES
- We won’t start any works until you are happy and approve of our scope of works
- Whether the job takes one hour or 3 hours the price stays the same
- We’re fully licensed and have all the right insurances in place to ensure your home is protected
- We standby our work and we will always ensure 100 percent satisfaction guaranteed. If you’re not happy we will do whatever it takes to make it right
- We will provide you with above standard and extended warranties on our workmanship and products that we install and back it with written guarantees
SCHEDULE WITH US TODAY
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