Billing Rate vs. Total Value

Rates matter, but the value for those rates matters much more.  At PROtect, we drive hard to be competitive with our services, but not at all costs.

 

Take for instance the following scenarios:

 

SCENARIO 1

If a service provider’s rates are competitive but the quality is lacking, is a lower rate worth it?  Could it mean a false sense of security or a service that misses identifying an issue that results in a catastrophic incident that severely impacts your company?

 

SCENARIO 2

If a service provider’s rates are competitive but they are not responsive, is a lower rate worth it?  Could that mean delays on projects that can cause you money every hour or day it is delayed?

 

SCENARIO 3

If a service provider’s rates are competitive but they are not efficient is the lower hourly rate worth it?  What if our rate is 10% more per hour which allows us to hire and retain the best team, and as a result we can perform 2x the work in the same amount of time?  For example, let’s take a Radiography (RT) job where 80 welds are needing to be x-rayed.  The talent and work ethic we can provide with $100 rate allows us to perform a high-quality service in a more efficient manner for a lower total cost.  See table below.

 

	Welds to X-Ray	Welds / Hour	Total Hours	Hourly Rate	Total Cost
PROtect	80	8	10	$100.00	$1,000.00
Competiton – High Average	80	5	16	$90.00	$1,440.00
Competiton – Low Average	80	3	26.67	$90.00	$2,400.00

NOTE: Representative of actual service scenario.

 

At PROtect, we understand risk and reward.  Our entire business is built on performing services for our customers to identify and address their risks.  We also understand how performing these services at competitive rates is important.  We will rarely be the cheapest cost per hour, but you can rely on our high-quality team to act with integrity, be responsive, and be efficient.  Often times even leading to a lower total service cost.