FLAT RATE IT SOFTWARE

Convenience: Flat rate pricing makes life easier for the customer.

There’s no going back afterwards and getting additional charges because the job took longer than expected. There’s no calculating the parts and time needed.

One Price: The job’s price is presented before the job begins.

You might be wondering: is flat rate pricing best for my HVAC business? Let’s dive into the benefits to the customers and businesses/ Customers Why Customers and HVAC Businesses Favor Flat Rate Pricing

So, once all the numbers are entered and calculated the flat rate repair totals $558.70. Now plug in the numbers into the equation. Let’s look at a flat rate example with the following numbers: Showing an overall flat rate repair price helps your customer see the value of the service you’re providing! Flat Rate Example

FLAT RATE IT SOFTWARE

Your flat rate software provider will contribute the average repair time and the current parts cost. (Your Hourly Rate x Repair Time in Hours) + (Part Cost + (Part Cost x Part Mark-up)) = Repair PriceĪs you can see, your hourly rate gets plugged in as well as your parts mark-up. Here’s what the standard flat-rate pricing formula for services looks like: As a result, it allows you to provide an upfront “quote” in advance. However, with flat rate pricing, you are provided with an average repair time. When pricing a job, many businesses start with the time and materials repair prices. When the flat rate price for a specific job is properly calculated, it should yield a healthy profit. Indirect Costs: Overhead costs such as the gas to get to a job, the wear on the truck, uniforms, training, etc.Direct Costs : These are the typical time and materials.This flat, fixed price will cover direct costs and indirect costs. A flat rate example and pricing formulaįlat rate pricing is a system that charges customers a set price for a job, regardless of how long it takes to complete the job.What flat rate pricing is and the challenges it solves.It can also improve customer satisfaction! We’ll dive into these benefits and more later in this blog. So what is a flat rate example and why would you use this type of pricing? This pricing model can be more convenient and profitable for your business. This can take the guesswork out of the equation. With flat rate pricing, the customer is presented one upfront price to complete a service. There’s the popular way to price a job using time (the hours it takes to complete the job) and materials (the parts). The HVAC industry is often divided when it comes to pricing structure. Flat-Rate Pricing: Calculation and Pricing Formula

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