Knowing how to price your HVAC services can be tricky and is one of the most important pieces of running an HVAC business.
There are two main schools of thought in the HVAC Industry. A standard pricing model takes into account the time and materials it takes to complete a job.
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A flat rate pricing structure, on the other hand, charges a set price to the customer no matter how long it takes to complete the job. There are pros and cons to each method, but let’s dive into flat-rate pricing and how it can benefit your business.
What Are The Benefits of HVAC Flat Rate Pricing?
The method takes your costs into account and sets you up for a healthy profit. By using flat rate pricing you can eliminate questions from the homeowner. It provides transparency and is easy to understand when it appears on an invoice.
Hourly pricing can cause more questions than answers if a customer feels the technician took too many breaks or perhaps encourages delays on the technician’s end rather than an incentive for completing the job in a timely manner. Flat rate pricing incentivizes the contractor to complete work in a shorter amount of time to earn the same amount and can also improve customer satisfaction.
The HVAC Flat Rate Pricing Formula
Flat rate pricing is calculated by taking an average repair time into consideration. This allows you to provide a price upfront.
The standard flat rate pricing formula looks like this:
(Your Hourly Rate x Repair Time in Hours) + (Part Cost + (Part Cost x Part Mark-up)) = Repair Price
Custom HVAC Flat Rate Price Books
Don’t worry, HVAC management software can help you know how to price correctly using the flat rate formula. You can also utilize custom flat rate books that already have common service jobs priced out to get you started.
How much does HVAC Software Cost?
HVAC software can range in price depending on the system you choose. Typically, complete HVAC software will cost between $500-$3000 per month, with varying features and benefits among different platforms. This also depends on the number of users that will be using the software. Do you intend to have your entire team on the platform? Does it make sense to have any subcontractors using it as well?
It might seem like a high cost upfront, but in the long run, HVAC software can help you increase your revenue. It will pay for itself by helping you become more efficient, generate new business, and collect on unpaid invoices. If this is something you planned for when writing your HVAC business plan, then you have nothing to worry about!
What is the best software for HVAC businesses?
The best HVAC software is one that helps you solve your business challenges and meet your goals. There are many options out there so it’s important to make sure you find one that is truly positioned to help you achieve exactly what you want.
Are you looking to cut down on unpaid invoices? Do you struggle with scheduling? Asking yourself if the programs you are considering will help you solve that is important during the research phase.
HVAC Field Service Management software, however, will help you run your entire business in one platform, from service calls to collecting payment and Payzerware is the highest-rated FMS among contractors.
What are the benefits of HVAC management software?
Many HVAC management software also provides other benefits. Payzerware allows you to streamline your entire operation, improving efficiencies from service calls to collecting payment on the job. Learn more about the benefits Payzerware provides:
Partner with Payzer for HVAC Flat Rate Pricing
The day-to-day logistics of running an HVAC company can be challenging and time-consuming as a business owner. Payzerware makes it easy to run your HVAC business by saving time in all aspects of your business by streamlining operations, improving collections, and helping you get to more jobs. The all-in-one field management software platform that combines software and support to help you grow your business.
And, it integrates seamlessly with a flat rate price book powered by Profit Rhino, a flat rate software used by heating and air conditioning companies. With automatic updates and access to pricing at your fingertips without leaving the system, Payzerware is positioned to help you earn more money and grow your business.
