The Problem with Hourly Billing
Hourly billing punishes efficiency. If you invest in better tools and training so your tech can finish a job in 1 hour instead of 3, you make less money. Furthermore, hourly rates create anxiety for the homeowner, who watches the clock worrying about the final bill.
Enter Flat Rate Pricing
Flat rate pricing provides the customer with a single, upfront price for the entire job, regardless of how long it takes. It shifts the focus from "how much are you charging per hour?" to "what is the value of fixing this problem?"
How to Build Your Flat Rate Book
You need to calculate your true hourly burden rate (labor + overhead + desired profit). Then, determine the average time a specific task takes.
Formula: (Average Time x Burden Rate) + Material Cost + Markup = Flat Rate Price.
The Benefits
- Higher Margins: You capture the financial reward of your team's speed and efficiency.
- No Price Haggling: The price is the price. The customer agrees before work begins, eliminating arguments at the end.
- Easier Upselling: It's easier to present flat-rate options (Good, Better, Best) than to negotiate hourly rates for different scenarios.
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