Flat Rate Pricing Strategies for HVAC, Plumbing and Electrical Contractors in Snohomish, Lynnwood, Seattle, WA, and the Surrounding Areas
For over 20 years, flat-rate pricing for residential and commercial service work has become the standard in most areas. Customer’s find it easier to understand and agree when pricing is delivered up front. Contractors are appropriately compensated for the efficient job performed by the seasoned, well-paid technician, while not overcharging the client when a less experienced technician might take longer to complete the same task.
Flat rate pricing structures also allow you to calculate the customer investment in order to cover company expenses and include your expected profit per job. Billing efficiency, overhead expenses, highly compensated technicians, discounts, after hours rates, investing in company growth are all considerations that must be calculated into pricing structures to ensure profitability.
FLAT RATE PRICING: PROFITABILITY
Guaranteed pricing and consistency are attractive to clients, and industry studies demonstrate that satisfied clients will invest in a service they find has higher value and quality. Software solutions typically integrate well with a flat rate. Managers and accountants are able to use the reports and accounting integration as tools for planning, coordinating, and estimating.
THE BENEFITS OF FLAT RATE PRICING
“Why would it be a good idea for me to switch to flat rate?”
Enhanced Efficiency: Repairs are quoted quickly using menu style selection. With little training, technicians can quickly and confidently select the appropriate repairs for the client.
Increased Profits: With pricing that matches the expenses and profit requirements of the company, technicians are no longer left to determine fair amounts to charge on their own.
Consumer Loyalty: Studies have demonstrated that clients would rather purchase a flat rate service as opposed to time and materials.