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 1 OF 7
Pricing for Profit: Flat-Rate Pricing vs. Time + Materials
Once you have calculated the direct labor rate for profitability, it’s time to determine a pricing structure to support that rate. And pricing, business owners know, can make or break your service company.
The calculations for the true cost of doing business, and knowing your bottom line and how much an employee costs the company, lead to maximized profitability and streamlined business operations.
While most electricians, plumbers, HVAC professionals, and other types of service companies use math daily, converting to flat-rate pricing and figuring out how to calculate direct labor cost can confound the most-seasoned contractors.
But based on that calculated labor rate, you can build a flat-rate pricebook that clearly shows customers how much your labor charge figures into the final price.
And ServiceTitan’s Pricebook Pro makes it even easier.
“ServiceTitan Pricebook Pro is an incredible time saver,” Yeudy Herrera of Maximum Indoor Comfort Corp. says. “It would have taken us at least twice as long to get up and running with any other pricebook provider.”
And flat-rate pricing with Pricebook Pro can simplify the path to profit, too.
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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