Service Pricing Calculator
Flat-Rate Service Billing with HVACBizPro.com    
 
 
 
 
KPI:  Service Department labor rate should be equal or less than 22% on your Service Financials  
 
Applied Time                      
Applied time is the time your technician spends billing the customer. The KPI is 85%. This means your tech is not billing 15% of the time.  
Potential Unapplied activities:  Travel time, over-spent lunch, over-spent break time, truck cleaning, sitting at a warehouse, etc.,   
                           
Hourly Rate of highest technician   Billed Hourly Rate to Customer      
                           
Part Cost Markup Part Part # of Hours Retail Labor Cost Labor Selling Price Labor as a percentage of sales    
  Price Margin   Labor after unapplied Margin of Part  
   
 
Feel free to enter numbers in the yellow boxes above.  Remember, the selling price of a part should fall under two critical factors.    
1.  What does my company need to make on an hourly basis.  This number is the billed hourly rate to the customer.  This number is calculated based on the GP dollar rate of your company.    
 
                           
2.  What will my market bear.  Most companies use number two here as the standard when both should be considered.  A simple survey of the market on simple repairs will give you an idea of what other contractors are charging for the same part.  Remember:  YOU CANNOT MATCH PRICES WHEN YOU KNOW YOUR HOURLY RATE MUST BE OBTAINED.   
 
 
                           
In the program, you are able to enter different markups for different ranges of pricing.  The idea is you cannot get a higher markup for a higher priced part.  Ie Compressors cannot be marked up 600%. Here are the ranges we see across the country as it relates to markups. Use the chart below to manipulate the formula to determine the selling price based on the two critical factors above.  
 
 
                           
  0 to  25 = 600 %  
  25 to  50 = 500 %  
  50 to  75 = 400 %  
  75 to  200 = 300 %  
  200 to  300 = 200 %  
  300 to  500 = 175 %  
  500 to  infinity = 150 %  
             
Additional Calculators
                         
 
Applied Time                    
Applied time is the time your technician spends billing the customer. The KPI is 85%. This means your tech is not billing 15% of the time.
Potential Unapplied activities:  Travel time, over-spent lunch, over-spent break time, truck cleaning, sitting at a warehouse, etc., 
                         
Hourly Rate of highest technician   Billed Hourly Rate to Customer    
                         
Part Cost Markup Part Part # of Hours Retail Labor Cost Labor Selling Price Labor as a percentage of sales
  Price Margin   Labor after unapplied Margin of Part
                         
 
Applied Time                    
Applied time is the time your technician spends billing the customer. The KPI is 85%. This means your tech is not billing 15% of the time.
Potential Unapplied activities:  Travel time, over-spent lunch, over-spent break time, truck cleaning, sitting at a warehouse, etc., 
                         
Hourly Rate of highest technician   Billed Hourly Rate to Customer    
                         
Part Cost Markup Part Part # of Hours Retail Labor Cost Labor Selling Price Labor as a percentage of sales
  Price Margin   Labor after unapplied Margin of Part
                         
Applied Time                    
Applied time is the time your technician spends billing the customer. The KPI is 85%. This means your tech is not billing 15% of the time.
Potential Unapplied activities:  Travel time, over-spent lunch, over-spent break time, truck cleaning, sitting at a warehouse, etc., 
                         
Hourly Rate of highest technician   Billed Hourly Rate to Customer    
                         
Part Cost Markup Part Part # of Hours Retail Labor Cost Labor Selling Price Labor as a percentage of sales
  Price Margin   Labor after unapplied Margin of Part