Old Way - Quotes New Way - Clear Pricing

Why Contractors Are Switching to Flat-Rate Pricing

If you’re still giving quotes for every small repair job, you’re working harder than you need to while making less money than you could.

Flat-rate pricing isn’t just a trend – it’s a business model that solves the biggest problems contractors face: endless quotes, price shopping, and unpredictable income.

The Quote Trap That’s Killing Your Profits

Here’s what happens with traditional quoting:

  • You spend 2 hours driving around giving quotes
  • Homeowner shops your quote against 3 others
  • You win maybe 25% of quotes (if you’re lucky)
  • You price low to compete, cutting your margins

The math is brutal: For every 4 quotes you give, you do 1 job. But you spent 8 hours quoting to earn 4 hours of work.

How Flat-Rate Pricing Changes Everything

You Become the Solution, Not a Competitor

When homeowners see “$89 to mount your TV” instead of “call for quote,” you’re not competing on price anymore. You’re competing on convenience.

Traditional: “I’ll come look and give you a quote”
Flat-rate: “TV mounting is $89, I can do it Thursday at 2pm”

Guess which one gets the job?

Your Time Becomes Productive Time

Instead of driving around measuring jobs, you’re either:

  • Doing paid work
  • Marketing to get more paid work
  • Enjoying time off

No more “quote appointments” that pay nothing.

Customers Actually Prefer It

Homeowners hate the quote process as much as you do. They want to know the price upfront and get their problem solved quickly.

What customers really think:

  • “Why do I need 3 people to come look at mounting a TV?”
  • “I just want to know what it costs”
  • “I don’t have time for all these appointments”

Flat-rate pricing gives them what they actually want.

The Services That Work Best for Flat-Rate

Perfect Fit Jobs

  • TV mounting (predictable time, clear scope)
  • Basic plumbing repairs (faucet replacement, toilet fixes)
  • Door adjustments (sticking doors, squeaky hinges)
  • Small drywall repairs (holes, cracks, touch-ups)
  • Caulking projects (bathroom, kitchen)
  • Furniture assembly (known time requirements)

Jobs to Avoid

  • Custom carpentry (too many variables)
  • Major renovations (scope creep guaranteed)
  • “While you’re here” requests (stick to the package)

Setting Your Flat Rates: The Formula That Works

Step 1: Calculate Your True Hourly Rate

  • Add up: wages, truck costs, insurance, tools, marketing
  • Most contractors underestimate – your real cost is probably $75-100/hour

Step 2: Estimate Job Time (Including Drive Time)

  • Be realistic about how long jobs actually take
  • Add 15 minutes for setup/cleanup
  • Include drive time in your calculation

Step 3: Add Your Profit Margin

  • Minimum 30% markup on your time
  • Factor in occasional challenging jobs

Example Calculation:

  • TV mount takes 1 hour + 30 minutes drive time = 1.5 hours
  • Your true rate: $80/hour × 1.5 = $120
  • Add 15% for difficult jobs = $138
  • Round to clean number = $140

Common Objections (And How to Handle Them)

“What if the job takes longer than expected?”
Build buffer time into your rates. If you consistently go over time, raise your rates – don’t abandon the model.

“Customers will think my prices are too high”
The customers who value convenience and certainty will pay fair prices. The price shoppers were never your ideal customers anyway.

“What about complicated jobs?”
Flat-rate works for routine repairs, not custom projects. You can still quote complex work while using flat-rate for your bread-and-butter services.

Making the Transition

Week 1: Identify your 5 most common jobs
Week 2: Set flat rates using the formula above
Week 3: Test with new customers only
Week 4: Evaluate results and adjust pricing
Month 2: Transition existing customers to flat-rate for new work

The Bottom Line

Flat-rate pricing lets you run a business instead of constantly chasing quotes.

You’ll work less and earn more because:

  • Every phone call can turn into a booking
  • No time wasted on quotes that don’t convert
  • Higher profit margins from premium pricing
  • Customers who value your service, not just your price

Ready to try flat-rate pricing? Start with one service you do frequently. Test the model, track your results, and watch your business transform from a quote-chasing hustle into a predictable, profitable operation.

Signup here.

What’s the one repair service you could price flat-rate starting next week? Pick one job you do regularly and run the numbers – you might be surprised how much more profitable your business could be.