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Just realized that paying my crew a flat daily rate instead of hourly cut my project overages by 15% last quarter.

I mean, the hourly model always had guys stretching out the last hour of a job, but switching to a set $300 day rate for my 4-person team made them hustle to finish early and actually saved me money on a 3-week roofing job in Springfield.
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3 Comments
the_piper
the_piper1mo ago
Flat rates fix the clock-watching problem.
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walker.cole
Flat rates just move the problem from watching the clock to cutting corners. If I get paid the same for a quick fix or a deep clean, I'm picking the quick fix every time. The client ends up with worse service because the incentive is to finish fast, not to do good work. You basically trade one bad thing for another.
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anderson.david
Saw a contractor on a podcast say flat rates cut his callbacks by 20%.
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