What price should be paid?
Posted by admin on April 2, 2008I’ve long suspected that many crime & trauma scene cleanup companies are overcharging clients. This feeling was somewhat substantiated the other day when I received an email from a well known company in this industry. The email was a solicatation for referral business. Attached to the email was a well drafted contract that guarateed me (or whomever referred business) a $750 referral fee.
Bio-Trauma 911, Inc. routinely offers up to $200 as a referral fee. The last two such checks cut were for $100. This isn’t because the company is cheap, it’s because we don’t charge the client enough to justify any more than $100 as a referral fee. I have to believe that most companies in this industry would be more than satisfied with a profit of $750 for a job. The majority of the jobs our technicians work take approximately 6 hours from start to finish. Since we send two techs, we would calculate the total cost of the job based on 12 hours. If we were to see a profit of $750 for a 12 hour job, which rarely if ever we see, the hourly profit would be $62.50. So, how does a company afford to pay out $750 for a referral fee? I have to assume they’re charging the client far too much for their services. Maybe insurance is paying for it - is it ok now to overcharge?
Although I can’t control what other companies charge, I do make it a point to let potential clients know about the wide range of prices charged throughout the industry.