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Introduction This article was written for service technicians and service department managers who use HVAC flat rate software for their heating, air conditioning, refrigeration, plumbing, electrical service and maintenance work. If you are considering the use of flat rate pricing, you will also benefit from this article and avoiding these common flat rate pricing mistakes. Rates Are Too High Many companies use flat rate pricing for service thinking that they can now charge more than they are worth. You should never overcharge your customers; no matter what pricing method you use. Ask a qualified accountant to help you calculate your actual cost of service labor with HVAC flat rate software. This is a called your breakeven point; the total direct cost of producing one hour of service department labor. You may then add a reasonable net profit to your breakeven point. It is very difficult to hire someone who really understands how to price labor. Look for an experienced professional who understands the service industry. They can engineer a terrific breakeven worksheet that you can use to determine your breakeven point on labor. Flat Rate Pricing and Poor Service You can’t use flat rate pricing to overcome poor performance. Some service companies are just plain lousy and they don’t appear to be worth what they are charging. Phones are not answered in a unique and practiced manner. Their service technicians are not uniformed, clean-cut, serious professionals. Managers emphasize technical training over customer service and communication skills. Trucks don’t look like they belong to a quality company. Value is a comparison of what you receive and what you pay for it. Anytime what you receive exceeds what you paid, the purchase was a bargain. Marketing processionals understand this concept and they are well aware that sometimes it is simply a matter of perception. Like a fine hotel or a fine restaurant, they work hard on both real and perceived value components. You can also think of it another way. A competitor’s service technician could charge $50 per hour for a HVAC repair and be a rip off. Your service technician could fix an air conditioning system for $100 per hour and be a great value. How can this be? A $100 per hour technician should perform a complete and thorough diagnostic procedure. Everything should be cleaned and tuned and a professional repair made in one trip. That’s worth one hundred bucks. A fifty dollar an hour parts changer who takes longer than he should and looks like he’s there to clean the house tar the roof instead of and not repair an electrical, plumbing, or HVAC system is no bargain. A bum at $50.00 per hour bum is still a bum. Conclusion Don’t be a bum. Use HVAC flat rate software to know what you should charge and the amount of work its worth. By doing this you not only give value to your clients but you also build a great reputation for yourself and company. Thank you for reading this article, I hope it helps you in your quest to understanding HVAC flat rate pricing. ProfitRhino is one hot hvac flat rate software selling in US and worldwide market since its complete development. An easy to pick and easy to learn software available for all users at much less prices.
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