New
Labor Intro VideoPlease be sure to have a look at our new labor pricing introduction video (to the right). This 2.5 minute video asks the question "Why do other industries charge so much more than HVAC, plumbing, and electrical companies do and what can we do about it?"
FREE Labor Cost Worksheet
With the help of James R. Leichter (Mr. HVAC), UMKC's school of business, Small Business and Technology Development Center (SBTDC), Aptora Corporation has developed an accurate and easy to use labor cost worksheet. This worksheet will allow service managers and contracting business owners to calculate the proper retail price of labor in just minutes without advanced accounting knowledge or financial reports. We now include a spreadsheet version (MS Excel required) in addition to the paper worksheet. You may get it here.
New Labor Intro Video
We have completely redone our very popular video called An Introduction to Flat Rate Pricing. This 41 minute video is a comprehensive overview of flat rate pricing. The intended audience is service technicians, service managers, and owners of HVAC, plumbing, and electrical companies. See for yourself if flat rate pricing is appropriate for you and your contracting/service business.
Unless You Are Charging About Six
Times More Than You Pay Your Highest Paid Techs, You Are Losing
Money on Every Service Call!
Approximately 35% of the industry uses flat rate pricing, including
some very big names you have heard of. Companies report higher
earnings, happier customers, and happier coworkers. Yes, you can
have all three!
A Little Background on Flat Rate Pricing
Flat rate pricing is NOT new. It has been around for many years.
Flat rate pricing has been in use successfully by many other
industries. In fact, many companies flat rate without calling flat
rate pricing. Think of a menu at a restaurant.
The top dogs in this industry know the only way to make good money
in service is with flat rate pricing. Industry experts
overwhelmingly recommend flat rate pricing. Tens of thousands of
users cannot be wrong. Flat rate pricing makes you more money,
reduces invoice haggling, and improves morale!
The Problem With Time and Materials
- Time and material pricing is very difficult to explain so customers get confused. The confused mind usually says no . . . says no to options, says no to upgrades, and says no to equipment replacements.
- Callers will always compare your Hourly Rate to their Hourly Pay. This means that you can only charge so much before you are seen as a "rip-off" (even when you aren't making money). How can you possibly justify your labor rate to an uneducated caller?
- The faster you and your technicians get the less labor time
you bill out on each service call. There's no reason to become
fast; it only costs you money.
What is Flat Rate Pricing?
- Flat rate is simply giving the customer a firm up-front price before any work is done. This price includes parts, labor and sales tax.
- Most contractors already flat rate two thirds of their work. You flat rate every time you write a sales proposal, quote a "clean and check", or sell a service agreement.
- With time and materials, you tell the customer what the repair will cost after the work is 100% complete. Is that fair?
What Do You Do When You Flat Rate?
Flat rate pricing is easier than time and material pricing. You
carry a book that has the price of all common repairs; things you do
85% of the time (a miscellaneous section covers the rest). You
charge a reasonable fee (like perhaps $69.00) to travel to their
home or business. You then take your time and look over the problem.
It's great because the customer isn't hassling you for not walking
or talking fast enough. You quote from the book so there is no
argument over what time you supposedly got there. The customer knows
that everyone pays the same price because it's in writing. They can
either say yes or no. They usually say yes! If they say yes you get
to work, if they say no you politely thank them and leave. It's that
simple!
How Big is the Flat Rate Book?
They're not big and they're not complicated.
Flat rate pricing books don’t need to be very large. A couple of hundred pages is
usually adequate. In fact, in the summer, you probably do 50 basic
repairs 80% of the time. Same for the winter. A good miscellaneous
section catches the rest and you can always use our “Price Builder”
to make your own price - on the spot.
A Little More on Flat Rate Pricing
Regardless of who you are, you are using flat rate pricing now!
Every time you write a sales proposal you are flat rating. Every
time your customers ask "how much" your techs are giving out flat
rate prices. Trouble is, your techs are guessing and ball parking
and they're not doing a very good job at it. That's one reason they
hate dealing with money.
Using a flat rate book from Aptora, you will provide your
technicians with a simple, easy to follow, professionally written
book, that includes a price for everything they do. Your technician
simply looks up a task and quotes prices right from the book. The
customer has an opportunity to ask questions, hear their options,
and approve all work before it happens. Their is no risk.
Your customer will pay more because you're offering them an absolute
guaranteed no risk price. You avoid arguments over what time you
showed up or when you left. You avoid unfair comparisons about your
rates because you no longer disclose your hourly rate to the whole
world.
You can be assured that your books are accurate because we know what
we are talking about. We are owned and operated by someone
like you. James R. Leichter is an accomplished service technician
turned business man. He knows what you go through everyday because
he has been there. We have been selling this flat rate program,
under the same name, since 1996.
What's In It For You
- More Money! Raise Your Prices. This Will Increase Profit and You Deserve It.
- Reduce Complaints. Customers Authorize the Work.
- Offer Higher Pay and Better Benefits. Helps You Get and Keep Great People.
- Offer a Guaranteed Price. Your Customers Will Love Your No Risk Pricing.
- No Haggling Over Invoices. Few Would Argue Over a Guaranteed Price!
- Technicians Love It. Copy Repair Descriptions and Pricing Right Out of a Book!
- Few Mathematical Errors and Fewer Misspelled Words.
- Increase The Effectiveness of Yellow Page Ads and Other Marketing. You Will Catch More "Telephone" Shoppers.
Want To Know More?
Please read this free
report on flat rate pricing from James R. Leichter, Mr. HVAC (PDF
Document).
View a Detailed PowerPoint® Presentation on the Concept of Flat Rate Pricing
Download of View a PDF Flat Rate Plus Brochure (click to open or right click to "Save As")