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Flat Rate vs. Hourly: how much are you leaving on the truck?

Hourly billing usually charges for wrench time only. The drive, the diagnosis, the parts run, the paperwork - you pay for those hours, but you rarely bill them. Put your real numbers in below and see what that habit costs per year.

Your numbers

Drive time, diagnosis, parts runs, paperwork - the hours the clock never sees.
Used in both models, so the comparison stays honest - the gap below is pure unbilled labor.

Why flat rate wins

  • Every tech quotes the same right price. No more pricing by whoever is on the truck.
  • The whole job is in the price. Travel, diagnosis, and overhead stop being free.
  • Customers say yes faster. One upfront number beats watching a clock.
  • Bigger tickets with good-better-best. Options sell upgrades without pressure.
Built by a contractor, not a software company.
James Leichter - known in the trade as Mr. HVAC - sold the first Windows-based flat rate software in the United States in 1996. Flat Rate Plus Online includes roughly 3,500 handcrafted flat rate tasks and syncs cleanly with QuickBooks Online, sales tax to the penny.

What hourly billing costs you

Left on the truck
$0
per year, at your numbers
Hourly - revenue per job
$0
Flat rate - revenue per job
$0
Hourly - $ per hour worked
$0
Flat rate - $ per hour worked
$0

The breakdown

HourlyFlat rate
Labor billed per job$0$0
Parts (with markup)$0$0
Revenue per job$0$0
Recovered per job+$0
Recovered per year+$0

Estimates for illustration: the gap shown is only the unbilled labor hourly billing gives away (parts markup is held equal in both models). Your results depend on your rates, mix, and market.

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Flat rate pricing questions, answered straight

What is flat rate pricing?

One upfront, fixed price for a repair task instead of billing time and materials by the hour. The price is built from the real cost of the whole job - labor, travel, diagnosis, parts, and overhead - so the customer approves a known number before work starts and you recover every hour the job actually takes.

Why does hourly billing leave money on the table?

Because the clock only runs on site. Drive time, diagnosis, parts runs, and paperwork are real hours you pay wages and overhead for, but rarely bill. Flat rate builds the full time-to-deliver into the task price, so those hours stop being a gift.

Do customers prefer flat rate pricing?

Most homeowners would rather know the exact price before work begins. Flat rate removes the anxiety of watching a clock, makes approval a simple yes or no, and lets your techs present good-better-best options professionally.

How do I build a flat rate price book?

You can build one from your labor rate, task times, and parts costs - or start from a professionally built library. Flat Rate Plus Online's Forever Free account includes the tools to build and manage price books online, and the paid plan unlocks roughly 3,500 handcrafted tasks, good-better-best proposals, invoicing, and a QuickBooks Online sync that gets sales tax right to the penny.

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