Flat price or by the hour?
A flat price, once you know how long the job takes.
- For
- Turn your usual time and parts into one price a customer can say yes to.
- When
- For jobs you’ve done many times
Try it
120 of parts, 30% markup and 2 hours at 90: price it 336, and it earns 144 an hour done in 1.5.
Flat price = parts × (1 + markup) + usual hours × your rate.
Price the usual job, not the fastest one you did.
Worked out
| Hours it took | Flat price, an hour | By the hour, an hour |
|---|---|---|
| 1 | 216 | 126 |
| 1.5 | 144 | 114 |
| 2 | 108 | 108 |
| 3 | 72 | 102 |
Easy to get wrong
- Pricing from your fastest time.
- Leaving out the drive and the clean-up.
- No price for what’s found behind the wall.
- Never checking it against real jobs.
The tool for it
Questions
Do customers prefer a flat price?
Most do: they know the cost before you start, so they say yes sooner.
What if the job takes longer?
You carry that hour, as you keep the hour when it’s quicker. Price the usual time.
What if I find something else wrong?
That’s a new job: price it and get a yes before you do it.
Which jobs suit a flat price?
Ones you’ve done many times that take about the same time.
How much markup on parts?
Your own choice; type it in. It pays for buying, carrying and returns.
Should the price show the parts?
One price is enough. List what’s included, not what each part cost.
How often do I check my prices?
Every few months, against how long the jobs really took.
Do I still need an hourly rate?
Yes. It’s inside every flat price, and it prices the jobs you haven’t done before.