Flat-Rate Pricing for HVAC: How to Build Your First Pricebook

DEFINITION

Flat-Rate Pricing

A pricing model where customers pay a fixed, pre-determined price for a specific repair, regardless of how long the technician takes to complete it. The price is set in advance and shown to the customer for approval before work begins.

DEFINITION

Loaded Labor Rate

The true hourly cost of having a technician on the road, including wages, payroll taxes, workers' compensation, truck costs, insurance, and overhead. For most small HVAC shops, a tech paid $25 per hour has a loaded cost of $55-$75 per hour.

DEFINITION

Parts Markup

The multiplier applied to parts cost when setting customer pricing. HVAC shops typically use 2.5-3.5x markup — a $15 capacitor at 3x markup sells for $45. Higher markup on small, cheap parts; lower markup on expensive equipment where customers are more likely to price-compare.

Why Flat-Rate Pricing Matters for Small Shops

Time-and-materials pricing punishes your best techs. A senior tech who fixes a blower motor in 45 minutes bills less than a junior tech who takes 2 hours on the same job. That’s backwards. The customer got better service and a faster fix, but you made less money.

Flat-rate pricing fixes this. You charge the same price for the same repair, regardless of how long it takes. Your experienced techs become more profitable, not less. And homeowners know the price before work starts, which means fewer arguments and more trust.

The problem is that building a pricebook feels overwhelming. ServiceTitan charges extra for their built-in pricebook. The New Flat Rate sells pre-built books starting around $1,500/year. And building your own from scratch feels like a massive project.

It doesn’t have to be. You can build a working pricebook in an afternoon if you focus on the right 20-30 tasks.

Step 1: List Your 20-30 Most Common Repairs

Pull your invoices from the last 6 months. Look at every completed service call and write down what was fixed. You’ll see the same repairs showing up over and over.

For most residential HVAC shops, the top 20 looks something like this:

Electrical: Capacitor replacement, contactor replacement, fuse replacement, wiring repair

Motors: Blower motor replacement, condenser fan motor replacement, inducer motor replacement

Controls: Thermostat install/replacement, control board replacement, ignitor replacement

Refrigerant: Refrigerant recharge (per pound), leak search, Schrader valve replacement

General: Drain line clearing, filter replacement, safety inspection, seasonal tune-up

Start there. Don’t try to price 300 tasks before you’ve priced 20. The goal is to cover 80% of your calls with a flat rate and handle the rest as custom quotes until you add them to the book.

Step 2: Calculate Your Loaded Labor Rate

Your loaded labor rate is what it actually costs you per hour to have a tech on the road. It’s not their hourly wage. It’s their wage plus everything else.

Add these up for each tech, then average them:

• Hourly wage (say $25/hr)
• Payroll taxes (7.65% for FICA)
• Workers’ compensation insurance (HVAC rates vary by state, often $5-$10 per $100 of payroll)
• Health insurance contribution (if applicable)
• Truck cost (payment, insurance, fuel, maintenance, divided by hours worked)
• Tools and equipment
• Share of rent, utilities, office staff

For most small shops, a tech paid $25/hr has a true loaded cost of $55-$75/hr. Your billable rate needs to be higher than that to cover profit. Most markets support $85-$150/hr for residential HVAC service.

If you’re not sure where your market falls, call three competitors and ask for a service call quote. Their diagnostic fee tells you the going rate.

Step 3: Price Each Task Using the Flat-Rate Formula

Here’s the formula:

Flat Rate = (Parts Cost x Markup) + (Labor Hours x Billable Rate)

Example: Capacitor replacement

• Parts cost: $15 (your cost from your supplier)
• Parts markup: 3x = $45
• Labor time: 0.75 hours (45 minutes)
• Labor rate: $120/hr = $90
• Flat rate: $135

Example: Blower motor replacement

• Parts cost: $200
• Parts markup: 2.5x = $500
• Labor time: 1.5 hours
• Labor rate: $120/hr = $180
• Flat rate: $680

Note the different markup multipliers. Small, cheap parts get a higher markup (3-3.5x) because nobody is going to price-shop a $45 capacitor. Expensive parts get a lower markup (2-2.5x) because customers are more likely to compare prices on a $500+ repair.

Run this formula for each of your 20-30 tasks. Put them in a spreadsheet with columns for: task name, parts cost, parts total (with markup), labor hours, labor total, and flat rate.

Step 4: Set Standard and After-Hours Rates

Create two price columns: standard (M-F, 8am-5pm) and after-hours (evenings, weekends, holidays).

The standard approach is 1.5x for after-hours. Your $135 capacitor replacement becomes $203 after hours. Some shops use a flat after-hours surcharge ($75-$150) added to the standard rate instead of a multiplier. Either works. Pick one and be consistent.

Be upfront about after-hours pricing when the customer calls. “Our after-hours rate is time-and-a-half. A capacitor replacement would be $203 instead of $135. Would you like to schedule for tomorrow morning at the standard rate, or do you need someone tonight?” Most customers appreciate the honesty and can make an informed decision.

Step 5: Format the Pricebook for Field Use

Your pricebook is useless if your tech can’t find the right price in 30 seconds while standing in a homeowner’s garage.

Keep it simple:

• Organize by category (electrical, motors, controls, refrigerant, general)
• Each line: task name, standard price, after-hours price
• No fine print, no complicated tiered options, no bundled packages (yet)
• Format as a PDF on the tech’s phone, or use a shared Google Sheet

Some shops print laminated pocket cards with the top 20 prices. Others use the pricebook feature in their field service software. ServiceTitan has a built-in pricebook, but it’s part of their enterprise package. Housecall Pro and Jobber both support custom pricebooks that your techs can access from the mobile app.

The format matters less than the access. If a tech has to call the office to get a price, you’ve failed. They need the number in their hand while they’re standing next to the customer.

Step 6: Train Techs to Present Prices Before Starting Work

The pricebook only works if techs use it. Here’s the presentation that works:

1. Tech diagnoses the problem
2. Tech tells the customer what’s wrong in plain language: “Your capacitor failed. That’s the part that helps your compressor start up.”
3. Tech shows the price: “The repair is $135, which includes the part and labor.”
4. Tech asks for approval: “Would you like me to go ahead with the repair?”
5. Customer says yes. Tech does the work. Tech collects payment.

This is where flat-rate pricing shines over time-and-materials. The customer knows the price before work starts. There’s no anxiety about the meter running. No surprise bill at the end. The tech is confident because they’re not guessing at the price or doing math in their head.

Step 7: Review and Adjust Quarterly

Parts prices change. Your supplier raises prices. Fuel costs go up. A repair that was profitable at $135 might not be at $135 six months later.

Set a calendar reminder every quarter to review your pricebook. Check three things:

1. Have your parts costs changed? Update the flat rate.
2. Are there tasks you’re quoting manually that should be in the book? Add them.
3. Are any prices consistently losing you jobs? Check if you’re overpriced for your market, or if you need to sell the value better.

A pricebook is a living document. The shops that build one and never touch it end up with outdated prices that cost them money. The shops that review it quarterly stay profitable.

Getting Started Today

You don’t need $1,500/year software or a consultant to build a pricebook. Open a spreadsheet. List your top 20 repairs. Run the formula. Print it out. Hand it to your techs tomorrow morning.

We built flat-rate pricebook support into CrewRoute because we kept hearing the same thing: “I know I need a pricebook, but I haven’t gotten around to it.” CrewRoute lets you enter your parts costs and markup, and it calculates flat rates automatically. Your techs see the price on their phone, show the customer, and collect payment on the spot. $149/month, and the pricebook is included.

But don’t let software be the reason you wait. A spreadsheet pricebook used consistently beats a fancy software pricebook that sits empty.