HCC Flat Rate
Flat Rate Pricing Guide
Flat rate pricing guide is just that, a guide to assist in determining the price a of service or repair job. A HVAC business has essential tools that are used every day, hand tools, meters, a van, etc. A flat rate pricing guide should be included as one of those tools. The business owner needs this tool to help determine the company's overhead cost, employee cost, and provide a standardized pricing structure. Knowing the overhead cost and employee cost makes a big difference in understanding why a company has a 45% profit margin or is just getting by. Standardized pricing is used in all industries, it takes all the guess work out of the equation. For example you buy a gallon of paint at the hardware store. The store clerk rings up your purchase and you are done. The clerk did not have to calculate the labor cost, part cost, overhead cost, and add the markup. The store owner uses tools like flat rate pricing to calculate these items and create a standardized price for the paint before it's stocked on the shelf.
HVAC companies should follow the same practice. Service technicians manually pricing service tickets usually cost the company money and can create some unhappy customers. The primary job of a service technician is diagnose and repair heating and cooling problems. How much extra time is spent by technicians calculating the cost of a repair? How does that effect the customer not knowing the final price? How would you feel waiting for the store clerk to calculate your cost for that gallon of paint? The HVAC company owner has the responsibility of pricing jobs not the technician. The owner knows which important items are needed to price every job not the technician. A company using standardized pricing has made the process simple. The technician and the customer know the repair cost before the repair begins and the owner knows the profit margin for each job.
The Flat Rate Pricing Guide is an adjustable tool. If two companies start using the flat rate pricing guide without making adjustments they will be charging the same amount for each job. The problem is Company "A" makes 75% profit and company "B" makes 15% profit for the same job. A company must adjust this tool to achieve the desired results. Any flat Rate pricing program would require some adjustments. All HVAC companies have different overhead cost, employee cost, and parts cost. The correct adjustments provide an increase in profits for the company and helps them stay competitive.
"We have been using HCC Flat Rate for several years. It has increased both our efficiency and profits. Easy to use and update."
B&M Services, LLC
HCC Flat Rate
Standardize company pricing.
Increase company efficiency.
Increase company profits.