Why Flat Rate Pricing is the Way to Go

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Why Flat Rate Pricing is the Way to Go

Flat-Rate1If you own a plumbing/HVAC company and don’t already use flat rate pricing, it’s time you switched. Time and material quotes are outdated and inconvenient. Chances are if you’re still using them you are losing valuable business. The following is a list of seven reasons why flat rate pricing is the best pricing method you should already be using.

Customers want flat rates

They get their prices up front so that there are no surprises and they can easily begin to prepare by budgeting for the services they need.

Standardized repair pricing

The same repair should produce the same results from customer to customer and from serviceman to serviceman. Flat rate pricing takes out the undercharging that happens if someone works extra fast or the overcharge that happens if the work is done extra slow. A result is a result, bottom line.

Service revenue

The goal of a flat rate pricing system is to charge a fair price. A fair price for you the company, and a fair price for the customer. It takes the emphasis off the hourly rate.

Cash flow

Customers are much more likely to pay the cost of the services you’re providing up front because they know what to expect. This is great for business because it hurts your company when you are waiting to get paid for jobs.

Sell more equipment

Flat rate pricing streamlines your business. Whenever a quote is given to the customer it can be given alongside a quote that allows them the choice to replace an item or repair. Flat rate pricing usually leads to more decisions to replace which generates more equipment sales.

More professional staff

Inflated hourly charges have been the blight of the plumbing industry for quite some time and customers are tired of it. With flat rate quotes customers feel like they are receiving services from a company that has their business together, organized and professional.

Customer loyalty

A recent study was conducted that included over 10,000 homeowners. Each homeowner was asked what pricing method they preferred and 91% chose flat rate pricing. You can’t really deny it’s popularity with customers and if you own a company you know that giving a customer what they want is a very important priority. When a customer is happy then they become repeat customers and when you have loyal repeat customers then you spend less on advertising and get a boost from positive word of mouth and online reviews. The flat rate pricing method is a win-win, for everyone involved.

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