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Flat Rate Price Builder

Build flat-rate pricing for common HVAC repairs. Pre-loaded task library with national average comparisons.

Tech hourly cost including burden (taxes, insurance, benefits)

How to Use This Tool

1. Select the repair type. Choose from the pre-built task library. Parts cost and labor hours auto-fill based on industry averages. Pick "Custom" to enter your own values from scratch.

2. Adjust parts cost and markup. Override the default parts cost with your actual supplier pricing. Small commodity parts like capacitors typically carry 200% markup. Major components like compressors use 75-100%.

3. Set your labor rate and hours. Your billable rate should cover tech wages, overhead, truck costs, and profit. Adjust labor hours based on your team's average completion time for this repair.

4. Review your flat rate against the national average. The comparison bar shows where your price falls relative to the national range. If you are more than 20% below the low end, you are likely leaving money on the table.

Why Flat Rate Pricing Works

Hourly billing penalizes your best technicians. A senior tech who replaces a contactor in 30 minutes earns your company half the revenue of a slower tech who takes an hour. Flat rate pricing flips that equation. Your price reflects the value of the repair, not the speed of the technician.

Customers prefer flat rate because it eliminates uncertainty. When a homeowner hears "it'll be $125 an hour plus parts," their anxiety spikes. Every minute the tech spends on the phone or walking to the truck feels like money burning. A flat rate quote of $325 to replace the capacitor removes that stress entirely. Higher close rates follow directly.

Flat rate also makes your business predictable. You know exactly what revenue each service call will generate before the tech leaves the shop. That makes dispatching, payroll forecasting, and profit tracking dramatically simpler. Most HVAC companies that switch from hourly to flat rate see revenue increase 15-30% within the first year with no additional marketing spend.

When HVAC Pros Use This

Building your price book from scratch. You are starting a new HVAC company or transitioning from time-and-material to flat rate. Use this tool to price out every common repair, compare to national averages, and build a complete price book your techs can use in the field.

Quarterly price updates. Parts costs change with supply chain shifts. Run your top 10 repairs through the builder each quarter with updated supplier pricing to make sure your flat rates still hit your profit margin targets.

Training new techs on pricing. Show a new hire exactly how the flat rate breaks down: parts revenue, labor revenue, cost, and profit. When techs understand the math, they present prices with more confidence and close more jobs.

Frequently Asked Questions

What is flat rate pricing in HVAC?
Flat rate pricing means charging a fixed price per repair regardless of how long it takes. Instead of billing hourly, you quote one price that covers parts, labor, and overhead. The customer knows the total cost upfront, which increases trust and close rates. Most successful HVAC companies use flat rate pricing for common repairs like capacitor replacements, blower motors, and thermostat installs.
How do I build a flat rate price book?
Start by listing your most common repairs. For each repair, calculate your actual parts cost, apply a markup (typically 75-200% depending on the part), add your labor at a billable rate that covers wages plus overhead, and include a miscellaneous materials allowance. Compare your prices to national averages to make sure you are competitive but profitable. Update your price book quarterly as parts costs change.
Is flat rate better than time and material?
Flat rate pricing outperforms time and material billing for most HVAC service companies. It eliminates the customer's fear of a runaway bill, which increases close rates by 20-40%. Techs who work efficiently earn more per hour since the price does not decrease when they finish faster. It also simplifies dispatching and cash flow forecasting. Time and material can still make sense for complex diagnostic work or unusual repairs where scope is unpredictable.
What markup should I use for HVAC flat rate?
For small commodity parts like capacitors, contactors, and fuses, a 200% markup is standard in the HVAC industry. For major components like compressors and blower motors, 75-100% markup is typical. Your markup needs to cover not just the part cost but also your truck stock inventory carrying cost, warranty risk, and the expertise to diagnose and install the part correctly.

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