Price the job, not the hours.
Here is the trap of hourly billing: the better you get, the less you make. The fix that took the new guy four hours takes you forty minutes, and hourly pricing pays him six times more for the same result. Twenty years of skill, priced as a discount.
Sell the outcome
The customer isn’t buying minutes. They’re buying heat that works, a panel that’s safe, a roof that doesn’t leak. Price the outcome: what is this problem, solved, worth? That number doesn’t care how fast you are — which means your speed finally becomes profit instead of a pay cut.
The customer isn’t buying your time. They’re buying their problem gone.
Building your flat-rate book
- List your top twenty jobs. Most trades find 80% of revenue comes from a short list.
- Price each at real cost — materials, drive time, overhead, callbacks — plus the margin you actually want.
- Round up, not down. The market forgives $480 → $500. Your margins don’t forgive the reverse.
- Review twice a year. Materials moved; your book should too.
Saying the number out loud
Flat rate only works if you deliver it flat: “That’s $850, parts and labor, done this afternoon.” No hedging, no “probably around.” A clean number said plainly signals a professional who has done this hundreds of times — which is exactly what the customer is hoping they hired.
Keep hourly for the unknowns
Diagnostics, mystery leaks, open-the-wall-and-see jobs — keep time-and-materials for genuine unknowns, and say so up front: “First hour is $140 to find it; then I’ll quote you a flat price to fix it.” Certainty where you can sell it, honesty where you can’t.