Toolboxplaybook-back-btn Playbookplaybook-back-btn Chapter 6

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 2 OF 6

Flat Rate Versus Hourly

When debating hourly vs. flat-rate pricing, contractors in the skilled trades make strong arguments for and against both options. 

Some believe time and material pricing represents the most transparent way to charge customers, whereas others think a flat-rate fee provides the best value for your services.

Whichever way you choose to bill customers, the process requires charging the right amount so your company meets a specific, targeted profit margin. 

So, how do you decide between the two payment structures?

We’ll go over the advantages and disadvantages of flat-rate pricing versus time and material billing, and which payment type works best to meet your company’s needs and your customers’ preferences.

Go to Section 3: What Does Flat Rate Mean?