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Delivering the best info in the HVAC & Plumbing industries.

Flat Rate vs Hourly Billing

July 21, 2014 No Comments Justin Baker Blog

Thank you for joining Excellence Alliance for the first of a six part series on Flat Rate Billing vs Hourly Billing.  Over the next 5 days, we are going to examine common scenarios in our industry and why your method of billing can help make or break your HVAC business.  

In the HVAC & Plumbing service industry there are 2 major billing methods – flat rate billing & hourly billing.  You may also know hourly billing as “time and materials.”  This type of billing is of course when the homeowner contracts you for the service and pays you only the actual time on the job and the actual materials used in the repairs.

Flat rate billing, on the other hand, also known as “flat-fee” or “upfront billing,” is a set price for a specific job.  The price of repair is given once a diagnosis is made and the services needed are determined.  This is an “out the door” price that already takes into account the materials needed.  Time on the job does not matter.

It is our opinion that the debate between flat rate billing and hourly billing is over – with one clear winner.  Be sure to check in over the next week as we examine every day scenarios, to your billing problems and what can be done to correct them.