Why HVAC Shops Move from Hourly to Flat Rate
If you still quote by the hour, you are tying revenue to the clock instead of the outcome. Flat-rate pricing shifts the conversation to value, certainty, and trust.
With flat rate, customers know the price before work starts, techs stop negotiating time on site, and your margins are easier to protect.
If you want the ready-to-use spreadsheet first, download the HVAC flat rate price book template. This guide explains exactly how to set the numbers behind it.
Related reading: HVAC dispatch guide and HVAC estimate follow-up guide.
Download the HVAC Flat Rate Price Book Template
Get the editable spreadsheet with labor formulas, parts markup logic, and Good/Better/Best pricing columns.
Disclaimer
This template is provided for general informational purposes only. Legal, tax, and regulatory requirements vary by business and jurisdiction, so you are responsible for reviewing and adapting it before use. LeadDuo makes no warranties and is not liable for outcomes resulting from use of this template.
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Flat Rate vs Time-and-Materials
| Flat Rate | Time & Materials | |
|---|---|---|
| Customer knows price upfront | Yes | Usually no |
| Tech efficiency | Rewarded | Penalized |
| Price disputes | Lower | Higher |
| Quote speed | Fast | Slower |
| Margin consistency | More predictable | More variable |
The Core Flat Rate Formula
Use one formula for every task: Flat Rate Price = (Labor Cost + Parts Cost + Overhead Allocation) ÷ (1 - Target Margin).
The goal is not to copy competitor pricing. The goal is to price from your own cost structure and target margin.
If your field team uses ServiceHub, these prices can be synced into your service catalog so booking, quoting, and invoicing all pull the same numbers.
Labor Cost Per Task
Use fully-loaded labor cost, not just wage: wage, payroll taxes, workers comp, benefits, and vehicle cost.
Parts Cost + Markup
Markup should vary by category. Small fast-turn parts usually carry higher markup than high-ticket components.
Overhead Allocation
Monthly overhead divided by billable hours gives overhead per hour. Apply that to expected task time.
Target Margin
Most residential HVAC businesses target roughly 15% to 25% net margin and update pricing at least twice a year.
Typical Parts Markup Ranges
| Part Category | Typical Markup Range |
|---|---|
| Capacitors, contactors, sensors | 80% - 120% |
| Motors (blower, condenser) | 40% - 70% |
| Refrigerant (per lb) | 50% - 100% |
| Circuit boards / controls | 30% - 50% |
| Compressors | 20% - 35% |
Use ranges as benchmarks and calibrate against your warranty risk, callback rate, and local market position.
Build Your Price Book in 5 Steps
Calculate Loaded Labor Rate
Start from true labor cost per hour, including taxes, insurance, vehicle, and overhead burden.
Set Task Time Benchmarks
Use average job duration, not best-case duration. Include setup, travel friction, and normal variability.
Price Parts by Category
Apply category-based markup rules so small parts are not underpriced and major components stay competitive.
Publish Good/Better/Best Options
For larger repairs, present three options to improve close rate and average ticket value.
Review Every 6 Months
Refresh labor, parts, and overhead assumptions on a fixed schedule so margins do not drift.
Want this running automatically?
ServiceHub automates follow-ups, reminders, and booking confirmations so nothing falls through the cracks.
Sample 2026 HVAC Flat Rate Ranges
| Task | Typical Flat Rate Range |
|---|---|
| Capacitor replacement | $109 - $179 |
| Contactor replacement | $129 - $199 |
| Blower motor replacement | $395 - $595 |
| Condenser fan motor replacement | $349 - $525 |
| TXV replacement | $495 - $795 |
| Evaporator coil replacement | $895 - $1,495 |
| Compressor replacement | $1,295 - $2,495 |
| AC tune-up | $89 - $149 |
These are directional ranges, not guarantees. Price from your own costs and service standard.
Common Flat Rate Pricing Mistakes
Copying competitor prices without cost modeling
Build prices from your labor, overhead, and target margin first. Competitor numbers are context, not your foundation.
Using one markup rule for every part
Split markup logic by part category and risk profile so margins stay healthy across repair types.
Skipping callback allowance
Include expected callback impact in your average task time assumptions.
Updating the book once a year or less
Review at least every 6 months and immediately after major labor or supplier cost changes.
Transition Plan: Hourly to Flat Rate
Once your pricing is stable, tighter dispatching improves throughput. See the HVAC dispatch and scheduling playbook.
After quotes go out, apply a structured follow-up cadence from the HVAC estimate follow-up sequence.
Week 1-2
Build flat-rate pricing for your top 10 most common jobs and validate internally.
Week 3-4
Quote those 10 jobs using flat rate only. Track approval rate and margin by job type.
Month 2
Expand to your next 20 jobs and train techs on presenting Good/Better/Best clearly.
Month 3
Move full price book live and schedule recurring review cycles.
How ServiceHub Helps You Run Flat Rate Consistently
A price book only works when every quote, job, and invoice uses the same source of truth.
- Single source of pricing: Keep flat rates in one catalog so tech, office, and customer-facing flows match.
- Faster approvals: Present clear options and send professional quotes without manual formatting.
- Close-the-loop follow-up: Use automated estimate follow-up so open quotes do not stall in inboxes.
?FAQ: Flat Rate Pricing
Do I still charge a diagnostic fee?▼
What if a job takes longer than expected?▼
Should I print my price book?▼
How often should I update my HVAC price book?▼
What margin should I target?▼
Should I show parts and labor separately on the invoice?▼
When should I use Good/Better/Best options?▼
Build Your HVAC Price Book This Week
Start with the free template, load your numbers, and standardize quoting across your team.