Flat Rate Pricing Software:
Terms & Online References
Profitablility / Revenue
Time / Materials / Labor
Forecasting / Reports / Planning
Integration / Costs
There remains a controversy on the best format for pricing service and light installation projects. You notice that I said "light installation" projects. I would classify a "light installation" project as a repair project that would take more time and materials than a single replacement of a part. It may contain several parts and more time to repair, but less time and materials than a major project.
Major projects require an estimate of labor, materials, overhead and profit. This would include a contract detailing the project, warranties, disclosures and payment schedules (see HVAC Estimating).
Most pricing structures for service and light installation projects are through a flat-rate or a time and material (T&M) pricing framework. With flat rate pricing, the customer agrees (or disagrees) with the set amount and accepts (or denies) to continue with the repair after a diagnosis of the problem. With T&M pricing, the customer is given an estimated price of the repair and accepts that the price will be in that cost range upon completion. Let's break the two pricing programs down.
Flat rate pricing is a fixed price that includes the labor, material costs, overhead (including taxes) and profit to perform a service.
To do the same service using T&M pricing, time is charged at the company's labor rate and its price (and mark-up) for the materials used. These expenses are calculated and any taxes added for a total.
I have found that T&M pricing can be fine for small companies. A competitive labor rate and a mark-up on materials can compensate for overhead and profit.
What if you have three or more employees doing the same service? Is each employee responsible for how long they would complete the service, plus the time calling the office or looking through a book to find the price for each item they used? What about the time it takes to write all this information on an invoice and to calculate the total?
If you already calculated a price guide for your materials, you are halfway through developing a flat-rate price program.
Flat rate pricing software programs are developed to easily integrate with your current business model.
With more and more people buying online and the availability to check (and compare) prices, flat rate pricing is the best option to eliminate any customer dissatisfaction with the price. This alone could cost you a customer.
With flat rate pricing, the customer knows up front what they are getting and what you are charging them for the repair. Flat rate pricing software can calculate and update material costs and overhead expenses.
A computerized program can produce reports and databases for other departments like inventory, accounting and management.
Flat rate pricing is for any industry that provides a repair service; be it computers, plumbing, appliances or even pest control.
In my industry (HVAC/R), I have seen these programs used to control future costs and increase profits. If you charge a labor rate and costs for materials used on a project, you could benefit using a flat rate pricing program.
|Acorate:ACORATE - Flat Rate Made Easy! | Team Management Systems Inc.|
|Aptora:Flat Rate Plus Software is flat rate pricing software created specifically for contracting businesses. Electrical and plumbing databases are available.|
|Callahan Roach:An in-depth look at the benefits of flat rate pricing for the HVAC industry. Learn how it increases your profits, plus other benefits.|
|Calls 4 Control:Flat Rate Pricing | Take Back Control of Your Company | Calls4Control.com|
|Collier:Flat Rate pricing software for HVAC, Plumbing, Electrical, and Appliance industries.|
|Contractor Success Systems:Customer Management and Flat Rate software for contractors. Estimating, scheduling, invoicing, quoting, Inventory Control.|
|Coolfront:Flat Rate Pricing lets the customer know what they'll be paying up front; Zero-Cost Flat Rate Pricing is the way for contractors to gain the advantages of digital flat rate pricing at a net cost of zero dollars. Coolfront Mobile is the Zero-Cost Flat Rate Pricing App for HVAC, Electrical and Plumbing Contractors.|
|Elite Software:Elite Software - 30 hvac software programs for all aspects of hvac, plumbing and electrical System Design.|
|Excellence Alliance:Flat Rate delivers fair, profitable sales. ProServ mobile flat rate is your way to higher profits, easier collections and happier techs.|
|Grow My HVAC:Award winning residential HVAC and Plumbing flat rate repair price books and Flat rate installation Price Books.|
|HVAC Business Solutions:The best HVAC flat rate price book for HVAC contractors. With the Picture Perfect Pricing HVAC flat rate price book home owners learn about air conditioning, heating and indoor air quality. The Picture Perfect Pricing HVAC flat rate pricing book helps sell service agreements. The Picture Perfect Pricing HVAC flat rate price book is available as a book or an iPad application.|
|NSPG:NSPG's mobile and cloud-based software helps Plumbing, Electrical, and HVAC firms grow their revenues and manage their entire business in realtime.|
|OnePlus:Flat Rate Pricing Software | OnePlus Service Systems | Customer service management software HVAC service dispatch software field service software HVAC software plumbing dispatch, service agreement management, paperless invoicing work order software.|
|Picture Perfect Pricing:The best HVAC flat rate price book for HVAC contractors. With the Picture Perfect Pricing HVAC flat rate price book home owners learn about air conditioning, heating and indoor air quality. The Picture Perfect Pricing HVAC flat rate pricing book helps sell service agreements. The Picture Perfect Pricing HVAC flat rate price book is available as a book or an iPad application.|
|Pro Comfort Advisor:Flat Rate | Pro Comfort Advisor | Enhance your customer experience. Improve your closing rates. Raise your average sale.|
|Profit Rhino:Profit Rhino – Flat Rate Service Platform|
|The New Flat Rate:We're helping electrical, HVAC flat rate, and plumbing contractors like you double and triple their sales. Menu Pricing is made easy with The New Flat Rate!|
|TurboBid:Customers hate Time & Material pricing for small construction jobs such as service work and remodels. TurboBid enables Electrical and Plumbing contractors to use flat rate pricng in their bids with confidence that it will ENHANCE rather than limit their profits.|
|UpFrontPrice:Price book printing & software for plumbing, HVAC service contractors.|
|V7 Software:Flat Rate Pricing Software and Books | V7Software.com|