Home : Products : Flat Rate Plus : Return On Investment

ROI Calculator

This calculator attempts to demonstrate how much more money you can make by raising your prices. Remember that flat rate pricing is one of the easiest ways to raise your prices. Forget about all of the hype, calculate your new profit for yourself.

Enter data in the fields. Then click "Calculate".


Step 1: The amount that you presently charge for service work per hour. If this varies, average out your first hour.

Step 2: The average hourly rate that you plan to charge per hour using flat rate pricing. Most companies increase their rate by $30.00 per hour. The national average, for one flat rate hour of service, is approximately $100.00 per hour. Many companies charge $105.00 per hour or more. Very few charge less than $75.00 per hour.

Step 3: The number of hours that your technicians actually bill your customers, each year. Most full-time technicians bill out approximately 1420 hours per year. As a general rule, multiply the number of full-time service technicians that you have by 1420. The result is the number you should enter.

Step 4: If you do not know what your variable costs are on each hour of service, use the approximate national average of 24%.

Step Required Information Answer
1 What is Your Present Labor Rate Per Hour?
2 What Will Be Your New Flat Rate Retail Labor Rate? (average is approx. $100.00 hr)
3 How Many Hours Do You Bill Out Each Year? (usually 1420 per tech.)
4 What is Your Variable Overhead on Labor? (usually about 24% of sales) %
Calculated Values (please see explanation below)
Total Sales Using Your Old Labor Rate:
Total Variable Overhead Using Your Old Labor Rate:
Total Sales Using Your New Labor Rate:
Total Variable Overhead Using Your New Labor Rate:
 
Additional Net Profit Per Year, Using Flat Rate Pricing:
% OR $
The Number of Days to Pay for the Flat Rate Plus Software:
Annual Return on the Software Investment: (Bank CD may get you 4%) %
 

Explanation of Calculated Values

Total Sales Using Old Labor Rate: This is your estimated annual sales for your service (or even installation) technicians based on your current labor rate. Note: You could also enter data based on your installation, duct cleaning, or any other department.

Total Variable Overhead Using Your Old Labor Rate: This is the overhead that is produced when you sell labor based on your OLD rate. Overhead examples may include workman's compensation, general liability insurance, payroll taxes, gasoline, and others.

Total Sales Using New Labor Rate: This is your estimated annual sales for your service (or even installation) technicians using your NEW labor rate. Please note: Your sales go up without the need for additional manpower or equipment. You are not working more, you are charging more for the same quantity of work.

Total Variable Overhead Using Your New Labor Rate: This is the overhead that is produced when you sell labor based on your NEW rate.

Additional Net Profit, Per Year, Using Flat Rate Pricing: This is the amount of additional NET PROFIT you will earn by raising your prices. The amount is also expressed as a percentage (left box).

Total Number of Days to Pay for the Flat Rate Plus Software: No, this is not a mistake. Many people are surprised by the fact that they can get their $2499.00 investment back in a matter of days or weeks.

Annual Return On The Software Investment: This is your ROI expressed as a percentage compared to the investment of $2499.00 for Flat Rate Plus. If you were to invest in a CD, at your local bank, you may get 4% to 5% on your money. Invest that same money in Flat Rate Plus™, and you will get considerably more ROI (return on investment).

Contact Sales
Toll Free
1-877-232-7978

Fax
1-866-878-1483

Email
Click Here to Email Us
 
FREE Information
Request a FREE Contractor Success Catalog

Receive a FREE issue of Contractor Success, our full-color catalog.

You can also sign up for our Tech Tips Newsletters.