Years of experience in flat rate pricing have proven that there are three major benefits to flat rate pricing:
- Improved Profitability
- Improved Customer Satisfaction
- Technicians prefer flat rate pricing
The CAP™ repair database saves the time and expense of maintaining a client's own repair database, allowing the client to concentrate on their core business - serving the customer.
In the HVAC industry - time means money, so the database actually prices all services, saving time for the company. Callahan Roach's flat rate pricing system also offers incredibly flexible and profitable parts markups.
Most importantly, CAP™ can determine the cost of doing quality service - including improvements to equipment, trucks and employee training - then establishes a labor rate that will ensure profits and growth for the company.
Just a small labor adjustment can have a major impact on a company's profit margins. Use this table to see what small changes to your labor rate will mean in your service department revenue.
Profit Increase on the Bottom Line
|Labor Rate Increase (hour)
Assured pricing and professional standards add up to high value for customers, and industry reports show that satisfied customers are willing to pay top dollar for quality. Managers and accountants are also able to utilize the reports and the accounting software integration components as valuable tools for planning, scheduling and forecasting.
Customers Want It!
A recent survey of the buying public found that 91% would rather buy a service that had a fixed fee (or flat rate) than have service performed on a time and material basis. Since we are in the service business it should be very important to deliver what the customer wants.
In our busy society time is important, and consumers do not want to spend their time watching the clock on a service technician making a repair. Consumers do not like open ended repair bills, but prefer overwhelmingly to know the total price up front with no hidden surprises. This menu pricing as it is sometimes called is used in many businesses today and if you look you will find flat rate everywhere.
Doctors flat rate office visits, lawyers flat rate divorce and bankruptcies, home services such as pest control, lawn service, and others are flat rate, automotive repair has been flat rated by major manufacturers for over 60 years, dentists, restaurants, and a host of other services are provided by a fixed price delivered before the service is performed.
If customers are more comfortable with flat rate pricing it makes good business sense to give them a pricing method they will accept with less anxiety.
Technicians and other employees prefer it:
Encourages Craftsmanship - With flat rate pricing, your technicians are given the time to be good craftsmen. They can take the proper time to analyze problems, their root causes, and to professionally remedy the customer's problems.
Fewer Callbacks - With flat rate pricing, the homeowner has no incentive to stand over the technician with a stopwatch, hurrying the tech along. By having adequate time to perform a repair under a flat rate program, the technician does not feel stressed having to beat the clock or do the repair in a faster manner that could lead to callbacks.
Increases Professionalism - Performance can now be judged on the technician's capabilities and results, not on how fast they complete a service call.
Better Communications - With flat rate pricing, both the technician and office staff are operating from the same page, so it improves communications internally and with the customer as well.
Talk to a Callahan-Roach HVAC Industry Professional: