AC Cost - Flat Rate Pricing - Naples FL

Flat Rate Pricing Vs Time And Materials

Flat Rate Pricing, and Time and Materials are two different price structures used by service companies. In this post, we will go over the basics of each. Additionally, we will inform as to why we favor one over the other.

Flat Rate Pricing

With “flat rate pricing”, the employer agrees to pay the contractor a fixed, flat rate for a repair. Furthermore, the quoted price does not change regardless of how much time the repair actually takes.

Flat Rate Pricing - Fort Myers Florida - AC Repair Costs

This pricing system was developed so homeowners know the cost upfront, before work begins. As a result, the flat rate pricing structure eliminates unpleasant surprises.

Time And Materials

Time and Materials pricing is a contract in which the employer agrees to pay the contractor based upon the time spent making the repair. Additionally, the contractor is paid for the cost of the materials used, plus mark up.

Flat Rate Pricing Facts

  • Flat rate pricing is commonly used in many service industries today
  • Consumers prefer flat rate pricing over time and materials charges. With flat rate, they do not need to worry that a technician might pad the bill by taking his time if work is slow.
  • Flat rate prices come from a standard, national flat rate price book. The repair times are based on national averages.
  • With flat rate you are no longer paying by the hour. Parts, labor, and overhead are all calculated into a single fixed price that will not vary.
  • Flat rate can save you a lot of money when a repair takes longer than expected.

Cost Man - Rates Charged for AC Repairs - Southwest FL

Time And Material Pricing Facts

  • Time – You are charged for any time spent on the job. There is nothing governing the amount of time charged for the repair. If the technician at your home is having a bad day, the cost of the repair could be much higher.
  • Material – You are charged for the material that is used on the job. Again you are trusting the technician to be honest with what he actually used to make the repair.
  • Time and Materials pricing is best used in projects where it is not possible to accurately estimate the size of the project. Furthermore, time and materials pricing should be used when the project requirements are likely to change.

In conclusion, for most repair services flat rate pricing is the preferred pricing structure. Finally, consumers should get multiple estimates before hiring any contractor on a time and materials basis.

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