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Part 6 – Add-On Modules
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Custom Flat Rate Pricing
Flat rate pricing of a company’s services is being employed by thousands of heating and cooling dealerships across
the country. This pricing method allows a company to value the services it renders at rates commensurate with the
value of the service to the customer and the actual costs of that service. It also opens possibilities for compensation
of service employees based on their personal profitability.
Most companies utilize hybrid pricing. That is, they use time and materials pricing for most service and repairs,
with certain repetitive repairs flat rated (i.e. compressor replacements, heat exchanger replacements). For instance,
try to itemize everything used to replace a factory-warranted compressor replacement in a cooling system. Be sure
to include refrigerant recovery, welding supplies, copper fittings, refrigerant, Nitrogen, filter/driers, travel expenses,
shipping costs, handling costs, vacuum pump usage, warranty and labor. An itemized invoice would surely confuse
your customer. Therefore, you may have developed a flat rate for this and similar repairs based on your experience
and knowledge of the industry. Many of the direct costs of such services are often absorbed as “overhead” since
they are not accounted in the base repair. Accurate accounting of direct costs and profitability of these repairs is
impossible.
To aid businesses price their services, several publishing companies have developed computer programs that will
create Flat Rate Price books and digital pricing data. The retail prices in those books are derived from your chosen
hourly rate and parts/materials markup. The resulting repairs and their prices are organized into printed books for
your office and service personnel. Many large heating and cooling service organizations have converted their entire
pricing structure to these Flat Rate Pricing books. Other companies are selectively expanding their flat-rated
services (in house) while continuing time and materials invoicing until acceptance by company owners and their
customers. It is widely believed that Flat Rate Pricing of your services is necessary to continue profitable operation
and customer acceptance.
Quantrac Corporation has created a Custom Flat Rate Pricing scenario for dealerships that don’t wish to purchase
pricing books from other vendors. It allows dealerships to create their own Flat Rate pricing structure and to
publish price books based on the actual costs of providing services. This new feature can be used “stand-alone” or
can be completely integrated within Quantrac2000 HVAC Office
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With Quantrac Custom Flat Rate Pricing, users can employ established parts, materials, and labor costs and prices, to
create a list of Flat-rated repairs and retail prices for each repair. Prices can be based on the actual cost of the repair
(times your desired multiplier), the sum of the retail prices of each individual item used in the repair, or any other
method you may desire. You can also update your entire pricing scenario and print new pricing books at any time you
wish. Development of your pricing can be implemented over any period of time. The pricing can be combined with
other time and materials pricing within the same invoice. Using the other integrated features of HVAC Office, you can
create and record invoices to present to customers, view or print revenue analysis reports, and print inventory
depletion reports. As a bonus, all Customer information, Jobsite information, Installations, Service Calls, and Invoices
can be created, printed, and saved in the system for future customer service.
This section describes how to create your own custom flat rated repairs and pricing. It also describes utilizing the flat
rates in your service invoices.
Step One: Establish your company’s invoice items.
The system uses your established list of parts, materials, labor charges, miscellaneous items, etc. as the basis of your
Retail Flat Rate Pricing. If you an existing Quantrac HVAC Office user, you have probably already customized
your invoice items and have been using them in your time and materials pricing. You may Skip to step Two.
If you are a new user, you will need to review the invoice items provided with your data, making any additions,
changes, or deletions you wish. From the menu bar, select Setup|Invoice Items.
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