When the ongoing success of your plumbing business is a primary goal, flat rate plumbing pricing can help you compete with larger companies to maintain a sizable share of the local market. Many plumbing businesses resist flat rate plumbing pricing due to the unfamiliarity associated with switching over to this method, but the benefits of the pricing structure cannot be ignored. Here are the benefits that you should be evaluating when you determine whether to get more competitive with a different pricing method.
• Using a flat rate pricing model allows your plumbing business to stop wasting time and money by maintaining an in-house pricing database. Flat rate plumbing pricing allows you to maintain flexibility when it comes to your pricing options, allowing you to remain profitable in your market.
• Ongoing costs associated with maintaining equipment and vehicles is factored into the pricing model, so you can be sure that your business will remain profitable over time.
• You have the opportunity to calculate the change in profitably that your company will enjoy if you raise hourly rates for labor. The ability to assess these changes lets you determine whether it makes sense to make a small change in rates.
• Over 90 percent of customers prefer to do business with a plumbing company that uses flat rate plumbing pricing. Customers view this pricing structure as a more fair billing method because they know what to expect when they receive the invoice.
• Flat rate plumbing pricing removes the time pressure that technicians often feel when customers are watching the clock. Your technicians are able to take their time to properly assess plumbing issues and form a plan of action, and customer satisfaction remains high. Since your technicians are free to take their time, it is less likely that you will get a callback from customers.
• When your office staff is providing information to customers about pricing, using a flat rate pricing structure means that it is easier for representatives to provide accurate details. Communication is key when it comes to customer satisfaction, and transparency when it comes to pricing is one of the most important factors that customers consider when they are determining whether your company is the right one for their needs.
While switching to a new pricing method can be overwhelming, the overall consensus is that a flat rate pricing structure will help you maintain profitability and compete with larger plumbing businesses.