Flat Rate involves charging a customer for a job through an agreed price instead of itemizing the bill
and charging time and material. A flat rate charge encompasses both time, travel, parts and materials
for the job. Collier Flat Rate allows consistent billing, fewer math errors, pricing before we fix it,
customer agreement and technician tracking.
Flat rate pricing is not new to the contracting industry. Flat rate began over 30 years ago and has
helped many contractors and customers become more definitive about pricing jobs. Flat rate is really
“average pricing”. The industry took the average time it took to do a particular repair in the field,
then added the selling prices of the parts used plus tax. The total amount is called the Repair Price
or flat rate price for the job. Some contractors call it the Contract Price.
Price Calculation
Instead of charging time in the home ($120 x 1.2 hours = Labor Total of $144) plus materials for the
job (Part A = $22.00 + Part B = $28.00 = Total materials of $50) plus tax ($144 + 50 = $194 x .07 tax
= $13.58 ) for a grand total of $144+50+13.58=$207.58, we charge a flat rate price.
Flat Rate Price Calculation
The flat rate price would be calculated the same, but is presented differently. We would open the Flat
Rate Book and show the customer the Repair Price in the book of replacing Parts A+B for $207.58. We do
not itemize time, do not itemize materials, and do not itemize tax, but grand total the value and put it
in the book. The customer sees the total for the repair before we repair it, not after.
By showing the customer the price before we repair, we are actually getting the customer’s permission to
repair the item and at an exact price. We do not charge per hour or per part, but by the repair itself.
Many other companies use this type of pricing in buffet restaurants, oil change services, and the post office.
In addition to the repair price, most all contracting firms also charge the customer a service call or
diagnostic fee to travel to their home and diagnose the problem.
More than 1800 users can't be wrong!
It's time to make more money!
Make the switch to flat rate pricing. It minimizes customer complaints and increases profits.
Did you know that most Contractors experience less than 3% profitability?!?
Make money this summer, get on flat rate! Create your own flat rate pricing book in only 10
minutes with our Pricing Wizard. With our software you will have the ability to print and
save as many books as you want.
Reports can have up to 6 truly independent columns, unlimited tax rates, labor markups and
discounts per column. Our software includes nearly 10,000 HVAC repairs, 90,000 parts and
equipment, 2,500 plumbing repairs and 45,000 plumbing inventory items. Plus you can add your
own company's logo to unlimited styles of reports.
Take advantage of pre-designed regional books or build your own. Globally change your book in a matter
of seconds. If you need assistance, Collier Flat Rate comes with unlimited lifetime support.
Why buy from a flat rate software provider when you can but from flat rate consultants?
We know the plumbing and HVAC business because we experience it each day.
