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Tag: Emergency Pricing

  • Structuring Emergency & After-Hours Rates

    Structuring Emergency & After-Hours Rates

    Getting out of bed at 2am should pay properly. It only does if the customer agreed to the number before you left the house.

    TL;DR Publish tiered rates by time band. Disclose on the phone before dispatch, every time. Get a verbal yes and log it. Never let a premium rate first appear on the invoice.

    Price the disruption, not just the hour

    An after-hours call costs more than overtime.

    • Overtime labour, at premium rates.
    • The disruption itself. Sleep, family time, the reason people leave trades.
    • Next-day capacity. A 2am call degrades tomorrow’s work.
    • Availability. You are holding someone on call whether the phone rings or not.

    That last one is the cost most businesses never price. Being available is a service, and it costs you even on quiet nights.

    The tier structure

    Band Hours Multiplier
    Standard Mon to Fri, 8am to 5pm 1x
    Evening 5pm to 10pm 1.5x
    Overnight 10pm to 8am 2x
    Weekend Sat and Sun 1.5x
    Holiday Published list 2x

    Plus a call-out fee for the trip itself, which should be higher after hours than during the day.

    Keep the bands simple. Four tiers people can understand beats nine that require a calculator.

    Publish the holiday list. “Holiday rates apply on the following dates” removes an argument every December.

    Disclose before dispatch, always

    This single discipline prevents almost every emergency-pricing dispute.

    The dispatcher script

    I can get someone out to you tonight. Before I book it, our after-hours rate is a $175 call-out plus $195 an hour, and there is usually a one to two hour minimum depending on what we find. Daytime tomorrow would be $95 call-out and $130 an hour. Which would you prefer?

    What that achieves

    • The number is stated before anyone moves.
    • Two genuine options, so they have a real choice.
    • A minimum, so the range is not open-ended.
    • A yes you can log.

    Then note it on the job. Date, time, who confirmed, what was quoted. Many businesses follow up with a confirming text before dispatch, which is stronger still.

    The confirming text

    Thirty seconds, and it eliminates disputes.

    Confirming: after-hours call-out $175 plus $195/hr, minimum 1 hour. Tech on the way, ETA 45 min. Reply Y to confirm. – Sicc Plumbing

    A reply of “Y” is a written record. Screenshot it into the job file.

    On-site disclosure, before starting

    Say it once more when you arrive, before any tools come out.

    Just to confirm what you were quoted on the phone: it is the after-hours rate, $175 call-out plus $195 an hour. Based on what I can see this looks like about two hours, so somewhere around $565. If I find something that changes that, I will stop and tell you before I carry on.

    That last clause is the change-order promise, and it is what prevents the worst version of this conversation later.

    Waiving the call-out, strategically

    The call-out fee is a useful negotiating tool if you use it deliberately.

    Reasonable to waive

    • When the repair goes ahead and is substantial.
    • For membership customers, as a stated benefit.
    • When you misdiagnosed on the phone and wasted their time.

    Not reasonable

    • Because they pushed. That teaches everyone to push.
    • Routinely, which means it was never a real fee.

    “The call-out is waived when the repair goes ahead” is a clean, popular policy. It rewards the outcome you want and it is easy to explain.

    Automatic premium invoicing

    Get this out of your head and into the system.

    • Set time-band rules in your field service software so the rate applies automatically based on dispatch time.
    • Show the rate on the invoice as a line item, named. “After-hours rate applied, 5pm to 10pm.”
    • Include the quoted range from the phone call on the invoice, so it visibly matches.
    • Attach the confirmation where the software allows.

    Naming the premium on the invoice is important. A total with no explanation invites a call. A line saying exactly why is self-explaining.

    The genuine emergency exception

    When a storm, freeze or heatwave creates community-wide distress, hold your published rates rather than raising them further.

    Two reasons. Many jurisdictions activate price gouging statutes during declared emergencies, with real penalties. And a business that raised prices during a freeze becomes a local story that outlasts the revenue by years.

    Your normal after-hours rate is already published and already understood. Applying it consistently during a crisis is defensible. Inventing a crisis rate is not.

    Deciding whether to offer after-hours at all

    Not every business should.

    Offer it if the premium genuinely compensates the disruption, somebody reliably answers, and your trade has real emergencies.

    Do not offer it if you will answer inconsistently, because an advertised 24-hour service that rings out produces worse reviews than no after-hours service at all.

    Being honest about your hours beats overpromising. “We are 7am to 6pm, and here is who we recommend overnight” is a perfectly respectable position.

    Write your rate table and publish it on your site this week. The premium is only defensible if the customer could have found it before they called.

    Need a pro to structure it? [CALL NOW]