Flat Rates and Hourly Rates | Which Is Better?

HVAC repair in Wake Forest NC

Even though I'm a contractor for HVAC repair in Wake Forest NC, I am still just like any other customer. I like to know the prices of products or services before I buy them. This is one of the biggest reasons why contractors often use a flat rate pricing strategy instead of a straight hourly rate plus materials used.

Many industries are using flat rates. Today, customers are paying flat rates for things like cell phone service and shipping packages. Contractors also state that using a flat rate pricing strategy helps them grow their business and close new sales. Customers often feel like they are getting a better deal by having an itemized breakdown of parts and labor on every job.

Some contractors prefer to charge an hourly rate for labor plus a marked up cost of all the materials used. This is sometimes called T&M for time and materials. The markup on the products is to increase profit margins and to offset the high cost of labor. The contractors for HVAC repair in Wake Forest NC that use this method say it is more transparent and fair to the consumers. Customers are allowed to see exactly how much time was spent to get the job done and how much the parts cost.

There are pros and cons to both T&M and Flat Rate strategies. This is why many contractors have started using a combination of the two to make things a little easier. One of the cons of using the time and materials pricing strategy is that as contractor, you might feel rushed to get your job done too quickly just to satisfy an unreasonable customer. This being said, customers need to understand that all jobs cannot be fixed with the snap of a finger. Some repair jobs will take a few hours to complete correctly. Using a flat rate allows your contractor to slow down and do the job the right way without rushing through and cutting corners.

Time and Materials pricing can also lead to having unruly customers calling you after the job is finished to complain about the price of the part you installed. Oftentimes contractors will mark up the prices of the parts they need to offset the labor costs. With the availability of the internet on every phone and computer, customers will sometimes find the part cheaper from an online retailer and will be upset with you demanding a partial refund. Using a flat rate system builds these costs into the bill. This strategy might be worth it just to save you from having to engage in these situations. Customers might not understand all the time it takes to get and keep the correct parts in stock or take them back and exchange them if they do not fit or work for the repair.

Quality HVAC Repair in Wake Forest NC

For most residential jobs, flat rate pricing works great. There might be a job here and there where flat rates will not work. Those types of jobs should always be discussed with the customer before any work is started. With Choice HVAC, we can guarantee that you will get upfront pricing every time. We offer free estimates on all of our work with three hour service windows. Call us right now and get scheduled for your winter tuneup. If your heat goes out, call our 24 hour emergency services. Day or night you can depend on Choice Heating and Air Conditioning Service to keep your family comfortable in all seasons.

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