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Plumbing Flat Rate In-Depth

Flat Rate Pricing: Profitability

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.

Save Time & Money

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.

Service Database with Flexibility

In the Plumbing 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.

Better Business Planning

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.

Small Adjustments = Huge Profit

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.

Labor Rate
Increase (hour)
$5 $8 $10
1 $6,240 $9,984 $12,480
2 $12,480 $19,968 $24,960
3 $18,720 $29,952 $37,440
4 $24,960 $39,936 $49,920
5 $31,200 $49,920 $62,400


A recent survey of the buying public found that 91% would rather buy a service that had an upfront price (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.

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Encourages Craftsmanship

Flat rate pricing gives your technicians 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

Homeowner's have no incentive to stand over the technician with a stopwatch, hurrying the tech along. The technician does not feel hurried to do the repair which improves quality and reduces callbacks.

Increases Professionalism

Performance can now be judged on the technician's capabilities and results, not on how fast they complete a service call. This leads to a better workforce for your business and your customer base.

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 Plumbing Industry Professional: