If you need non-emergency HVAC or plumbing service at your home, you might pause to consider price before making the call. Taking the time to research HVAC flat-rate pricing before scheduling service can save you money and increase your chance of satisfaction after the job is complete.
There are flat-rate HVAC companies that charge based on a pre-set list of service offerings, and then there are HVAC companies that charge based on time and materials. Before making an HVAC service call and deciding what type of company to choose for your job, you should consider the differences between fixed-rate and hourly rate HVAC companies.
What Is Flat-Rate Pricing?
Flat-rate pricing allows companies to predetermine their prices for each job based on previous experience completing those jobs. This type of pricing provides a plethora of benefits when it comes to service contracting.
Although there can be drawbacks for an HVAC company that elects to use a flat-rate pricing system, it is the most efficient and fair option for the customer. Sometimes a job turns out more complex or requires more parts than originally expected. A scenario like this would require the HVAC expert to spend more money and time on the job, but the additional burden would not be reflected in the customer’s bill.
What Is The Hourly Rate For HVAC?
The hourly rate for an HVAC technician can vary depending on several factors, including experience, specializations, licenses, and location.
A company that bills hourly for a technician can charge between $150-$275 per hour. This hourly rate includes the labor fees, cost of business, gas, insurance, etc. — rolled into an inflated, hourly rate. On top of that, hourly HVAC companies typically will mark up parts 25-50%.
This hourly rate, in addition to travel expenses and parts needed to complete a job, can quickly add up and leave the customer blindsided upon the price of a completed HVAC job. Flat-rate HVAC pricing takes the ambiguity out of hiring and pricing! That’s why John C. Flood always charges a flat-rate fee, no matter how far our customers live or how long the problem takes to solve.
It’s still important to have an expert technician visit your home first to give you a price for an HVAC job. HVAC companies won’t give a quote over the phone for an HVAC job because a thoughtful approach ensures a fair price and a realistic timeframe.
Benefits Of HVAC Flat-Rate Pricing
Flat-rate HVAC service pricing presents fixed, transparent fees to customers. This business model fosters trust and builds rapport with customers. The up-front pricing is easy for customers to understand and allows for easy price comparison to other companies offering the same service.
The customer can quickly research what other industry experts offer and decide if the fixed price is fair. With hourly rates, a customer might agree to an estimated price beforehand and then end up with a much higher bill if the job takes longer than expected. A fixed price ensures that there are no misunderstandings, helps avoid awkward conversations, and minimizes chances of dissatisfaction afterwards.
Opportunity for Discounts
If an HVAC company charges hourly, it becomes more difficult to offer coupons or special savings because of the many unknown factors that go into calculating materials and hourly pricing.
However, there are typically semi-regular coupons for fixed-rate HVAC services. These deals are easier to calculate and create more consumer loyalty. An HVAC company that offers price transparency is more likely to retain a customer long after the one job is complete! Saving money is just one of the many reasons why you should schedule regular maintenance.
Repeatable and Predictable Service
The inherent nature of fixed-rate pricing creates a repeatable and predictable final bill — no matter what technician is completing the job. An HVAC company that charges the same amount for an HVAC tune-up each time, or a fixed rate for a booster fan installation regardless of the size, creates loyal, happy customers. This is one way you can trust your home to John C. Flood.
Flat-rate HVAC service pricing encourages productivity and a swift completion of jobs. With hourly pay, some technicians might be tempted to drag their feet on the job. HVAC technicians must deliver as much value, in a timely manner, as possible in order to be profitable.
This HVAC flat-rate pricing business model encourages employees to finish servicing customers’ homes and be as productive as possible to earn more jobs. In the HVAC industry, our technicians have seen every possible roadblock there is, so there are rarely any surprises.
Without flat-rate HVAC pricing, a service technician sent out to complete a job has to act as a technician, customer service representative, salesperson, and billing processor. Those roles can be overwhelming and detract from the task at hand.
Flat-rate pricing gives technicians the ability to focus on the problem and find a solution without trying to calculate and negotiate the cost of the job. A flat-rate pricing system ensures that the client is charged correctly and minimizes hassles for the technician and the client.
Know The End Price From The Very Beginning
At John C. Flood, we pride ourselves on making sure that our customers aren’t caught off guard or feel cheated by the bill. Our service technicians put effort and care into every task, no matter if it takes 30 minutes or 4 hours. That’s the benefit of HVAC flat-rate pricing!