Flat-rate pricing

Flat-rate pricing is quoting one fixed price for a defined job, set before the work starts, whatever the hours turn out to be. The customer knows the cost up front, and the company keeps the difference if the job goes faster than expected, or absorbs it if it goes slower.

Example

Say a drain clearing takes 2 hours, your labor and overhead cost $50 an hour together, and parts add $20. Your cost is $120. To keep a 35% margin you divide by 0.65, which is $184.62. You might round that to $185 and quote $185 every time, whether the job takes 1.5 hours or 3.

For the full comparison with billing by the hour, read flat rate vs. time and materials. To find the hourly rate behind a flat price, try the labor rate calculator.