CHAPTER 6
Billing Structure: Determine Your Pricing
Flat rate or hourly pricing? Making that decision wisely helps to ensure you’re charging rates that match the value of the service, and making sure there’s a profit from every job.
SECTION 3 OF 7
What Does Flat Rate Mean?
Flat-rate pricing means your company charges the customer a set price for a specific job, regardless of how many hours it takes to complete the project. A single, fixed price includes the direct costs for parts and labor, and the indirect costs of overhead expenses.
When explaining this flat-rate meaning to customers, instruct your techs to describe it as the direct cost your company charges for providing a service, plus a small added markup based on a certain percentage or a set amount to cover company costs.
For instance, a flat-rate plumbing fee of $250 to fix a leaky faucet might include the parts needed for repair, estimated time on the job, and a small percentage fee for overhead expenses, such as fuel, truck maintenance, insurance, etc.
In comparison, hourly pricing or a time and material contract means your company charges the customer for parts and materials, plus a set hourly rate for the amount of time spent on the job.
Table of Contents
1. Introduction
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2. Building a Company for Success
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3. Setting Your Company Up for Success
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4. Driving a Company Culture
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5. Setting a Path to Maximum Profitability
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6. Billing Structure: Determine Your Pricing
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7. Marketing Practices
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8. Call Center Practices
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9. Call Center + Field Practices
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10. Best Practices in the Field
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11. Field + Office Best Practices
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12. Keys to Success in the Office
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13. Management and Office Best Practices
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14. Human Resources
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15. Preparing Your Company For Sale
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