How to price service work (flat-rate pricing 101)
Pricing from memory is how shops underbid. Here's a simple, repeatable way to price service work — and turn it into a flat-rate price book you quote from in seconds.
Build the real cost first
For any task, add three things: parts (your cost), labor (hours × your loaded labor rate), and overhead (see overhead per hour). That total is your real cost — not the price.
Add your target margin
Price the job at your target margin: price = cost ÷ (1 − margin). Don't confuse markup and margin — here's the difference.
Flat-rate vs time & material
Flat-rate prices the task, not the clock — the customer knows the number up front, and a fast tech isn't punished. Time & material fits big, unpredictable jobs. Most shops use flat-rate for common repairs and T&M or a real bid for large installs.
Turn it into a price book
Price your 50–100 most common jobs once, save them as flat-rate tasks, and quote from the book instead of doing math in the truck. BidRite ships a 373-task HVAC book and plumbing/electrical starters, or you build your own. See the price book.