How Are You Pricing Your Services?

Service businesses rely on certain pricing strategies, for better or worse. But the one you choose matters more than you’d think in the Merry Old Land of Field Service. Answer the questions below to see if you’re following the Yellow Brick Road or lost somewhere in the Haunted Forest.

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“Suzie Pricing,” aka Competition Pricing

“Suzie” or another admin calls competitors to get a range of quotes, letting competitors drive their price by positioning their own company in the middle.

“Scaredy-Cat Pricing,” aka Fear & Volume Pricing

“Scaredy-Cat Pricing,” aka Fear & Volume Pricing

The hope: Lowballing your own pricing will increase volume, generating higher profits. But if you aren’t making money at a certain volume, increasing it won’t help.

“SWAG (Some Wild Amazing Guess) Pricing,” aka “Sounds Right” Pricing

“SWAG (Some Wild Amazing Guess) Pricing,” aka “Sounds Right” Pricing

If a pricing model has worked in the past, it must still be effective. When you purchase someone else’s business and adopt their pricing because it “sounds right,” it’s a coin toss without any real formula or reason.

Is your pricing strategy accurate and profitable?

Yes No

High five! Let’s see where we can optimize.

Oh no, Toto! We can turn that around.

Are you a technician turned business owner?

Yes

You don’t know what you don’t know. Doing the manual labor is a horse of a different color, very different from running the business.

No

Maybe your strategy needs a change of direction. Let’s dig deeper…

Do you still have a published hourly rate?

Yes No

Are you managing your flat-rate pricing manually?

Yes No

Why? When you go to dinner, you don’t pay for the individual ingredients in your entree. When you see a movie, you don’t pay per minute of the film. Instead, you pay for the value of what you consume—$29 for steak and potatoes or $20 for a Sunday matinee. Because there are no surprises, flat-rate pricing is more attractive to customers than other models like time and materials. Get up to speed on business costs to make flat rate work for you.

The public has spoken, and 92 percent of homeowners prefer to pay upfront for service, but only 20 percent of contractors offer it. We’re glad you’re in that 20 percent! However, manually managing your flat rate can be time-consuming and lack consistent accuracy.

There’s a better way! Service Fusion Flat-Rate Pricing powered by Profit Rhino saves you hundreds of hours building your own system. This digital price book covers 90 percent of common repairs, provides quarterly updates, and is completely customizable whether you’re in the office or the field.

Follow the Flat-Rate Pricing Road to discover a more profitable business.

Is your price book solution working for you? Service Fusion Flat-Rate Pricing powered by Profit Rhino covers 90 percent of common repairs, provides quarterly updates, and is completely customizable whether you’re in the office or the field.

Follow the Flat-Rate Pricing Road to discover a more profitable business.

Debunking Flat-Rate Pricing Myths

If you’re used to charging customers differently, the idea of flat-rate pricing probably feels like getting attacked by flying monkeys. Let’s set the record straight so you can find the Wizard and get home to Auntie Em.

: Nope! Flat-rate pricing is actually easier on techs because they don’t have to make calculations in the field and can quickly reference prices. Plus, it helps them focus on quality instead of customers looking over their shoulders, counting minutes and hours.
: Doubtful. You could have the rare job that takes longer or isn’t covered in the price book, but flat-rate pricing is precise enough to offset any exceptions to the rules. Any odd job is balanced by the rest!
: Also no. You could spend hundreds of hours developing a flat-rate system—wasting both time and money—and never see it implemented. But relying on trusted tools like Profit Rhino with 30+ years of experience can get things up and running in no time.

Retiring Happily on Your Kansas Farm

What will life be like over the rainbow? Whether it’s soon or far into the future, someday you’ll retire and sell the business, your adventure complete. To do it comfortably, your business needs to regularly profit more than 3 percent. Take steps today to understand the cost of doing business, using the information to craft a price point that is profitable 100 percent of the time.

Service Fusion Flat-Rate Pricing powered by Profit Rhino can help!

Decades more experience than other providers
Untouchable amount of data
Updated in real time, all the time
Undeniable efficiency