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Should I Charge Flat Rate Pricing?

Should I Charge Flat Rate Pricing?

Should I Charge Flat Rate Pricing?

Posted by Juliette Riddle

Placeholde

Uploaded 65 days ago

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Should I Charge Flat Rate Pricing?

Whether you are just starting your plumbing, HVAC, cleaning, electrical, or other home service company, or have been in business for years, changing your pricing structure can be tempting. If you still charge by the hour, or some combination of hourly and project based, is switching to a flat rate pricing model a good move?

Daniel Beattie
October 8, 2018

I have a little plumbing company & I am thinking about moving to flat-rate pricing, does anyone have any advice for me or information they could share? I would appreciate it thank you.

What Are The Benefits Of Flat Rate Pricing?

Billy Bostick: Do it! Work however hard it takes to get it done. Happier customers, better money.

One of the immediate benefits of a flat rate pricing model is customer service. You have likely encountered customers who are distrustful of your service due to bad experiences form contractors giving one price and then charging more at the end of the job. Hourly rates can scare homeowners. With a flat rate price, you have a unique selling point telling your clients that they can rest assured with your services with an up front and determined price.

Nanciann Almquist: Customers appreciate knowing what it’s going to cost upfront. 

Shayna Shadowen: You can make more money and customers are much happier. It’s not just about flat-rate though. It’s about building value. How are your phones answered? What does your vehicle and techs look like? How do your techs talk and walk? Build value and stand behind your work. You will have customers for life.

How Do I Switch To Flat Rate Pricing?


Frank Draiss: Profit Rhino

Cathleen Cesar Marsh: What other companies compete with Profit Rhino? 

Shayna Shadowen: The new flat rate

Cathleen Cesar NarshL Shayna Shadowen Why. I’m trying to compare. 

Shayna Shadowen: They reword parts. We tried both the electrical and HVAC for 3 months. Customers hated it. 

Shayn Shadowen: Ceiling fan = Air Distribution System.

You know your business better than anyone, but setting flat rate prices can be daunting. There are services, such as Profit Rhino and The New Flat Rate Pricing that can help streamline the process. Getting professional assistance to help build out your new flat rate price book can save a lot of headaches and maximize your profits. 

Both Profit Rhino and The New Flat Rate offer product demonstrations so you can determine if they are a match for you.

Final Thoughts

Many of our Housecall Pro members have moved to a flat rate pricing structure for both their customers and for increasing profits. However, flat rate pricing is not the only unique selling point you can offer to grow your business. Continue offering exceptional customer service, quality work, and expert communication and you will find it easier to maintain customers for the life of your company. 

Mike Crowley: Come up with your formula and diagnostic fee. Your price book is an ever-changing piece of the puzzle. We did it in May and can’t believe the difference. 

Daniel Beattie: Mike Crowley really? 

Michael Lutz: I think moving to a flat rate overall is fair for both parties. Do research. 

Michale Lutz: It also depends on the diagnosis and drive area as well as part availability.

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