The Benefits of Flat Rate Pricing Compared to Time & Materials

Service Tech-#2-Self-light blue shirtMany contractors today are moving to flat rate pricing to bill customers instead of time and materials. We feel that flat rate pricing is a better route for billing our customers. Not sure what flat rate pricing is or how it works? Let us explain that for you.

Everything You Need to Know About Flat Rate Pricing:


Flat Rate Pricing – Offering a finished product or service for a set price for the service repair visit or equipment installation.
Time & Materials – Customer pays for the time it takes to do the job, as well as the cost of the parts.

The typical way flat rate pricing works is that a technician will perform a diagnosis and then recommend a repair with a fixed price. With time and materials the customer normally feels like the clock is ticking away and they aren’t sure of what the bill will be in the end.

Here are some of the many benefits of flat rate pricing:

  • Diagnosis & Set Price – Your concerns can be eased should you have a major problem, because with flat rate pricing you are quoted a price to diagnose the problem and a price for the repair before we complete the service.
  • No Price Surprises – Flat rate pricing gives you the security of knowing what your final bill will be for the repair, and there aren’t surprises.
  • Transparency– Another benefit of the flat rate pricing model is that flat fees are transparent and easy for customers to understand.
  • Easily Understandable – Flat rate prices are typically derived from reviewing similar jobs and using the average cost of those jobs to create the price.

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