If you’ve ever received a quote from a trades company (be it a plumber, an electrician or any other ‘service’ based works) it’s not uncommon to see a Callout Fee or a Service Charge listed on the quote.
While some customers take offence to this, others understand why it is being charged for.
We hope a little insight can help you understand why it’s charged for, and also why we even show you it’s being charged for – what you know can’t hurt you right? Wrong…
What is a Callout Fee?
A callout fee is a charge just for the tradesman turning up at your house. This fee may seem like a money grab, but the cost to deliver your job didn’t start in your driveway, it started when you called the business with an inquiry. Below are some of the costs associated with getting to your driveway…
- Public Liability Insurance
- Vehicle Financing
- Staff Wages
- Fuel
- Tolls
- Wear and Tear
- Administration Staff Wages
If you take the annual cost of the above, and divide it by your estimated jobs per year, you can quickly understand why a company is charging you a callout fee.
DID YOU KNOW: Verve Electrical PTY LTD charges 2 different callout fees. We charge our standard fee, or we charge our local radius discount because the travel and wages component is lower. It pays to use a local trades company to benefit in this way when it comes to the final invoice.
Do All Trades Charge a Callout Fee?
Some trades do not charge you a callout fee, but the costs associated are covered by higher fees for the services they offer. So instead of knowing what you’re paying for, you simply read the first line of the quote that says “Callout Fee – $0.00” and think you’re winning. The company you have chosen then charges you for the missing callout fee on Every. Single. Item.
So they actually charge you more, the more they do for you…
Why Tell Me?
Logic would suggest it’s best to tell a customer what they want to hear, right?
“No we do not charge a callout fee…”
But our whole intention is to be a transparent trades company, and we have some respect for your intelligence so we’d rather just show you that we are charging you a callout fee, and we even outline why!
So next time you get a quote, don’t just think you’re being ripped off. Appreciate the honesty, and ask some questions…. a defensive answer gives you enough of a clue to know who you’re dealing with, as opposed to an informative breakdown in costs.
