Estimated reading time: 6 minutes
Key Takeaways
- Flat rate pricing provides upfront clarity and allows for better customer experiences.
- The time and materials method reduces upsell opportunities and is vulnerable to customer pushback.
- Offering Good, Better, Best options builds trust, increases sales, and improves technician engagement.
- Keep your back office in sync: track SPIFFs, monitor margins, and review pricing monthly.
- Start small by creating flat rate tiers for your top 10 most common jobs and build from there.
Flat rate pricing isn’t just a method—it’s a mindset shift that transforms how plumbing companies do business. If you’re still billing based on time and materials, you’re leaving money (and customer goodwill) on the table.
Let’s walk through the evolution of pricing, the power of Good/Better/Best options, and how to present these tiers effectively while keeping your techs motivated and your customers informed.
The Old Way: Time and Materials (T&M)
| Time and Materials Equation |
| Total Cost = (Hourly Rate x Time Spent) + (Material Costs + Markup) |
Time and Materials sounds fair on paper:
- Labor is billed hourly
- Parts are added based on usage
But here’s what often happens:
- Customers start watching the clock.
- They question your hourly rate—comparing it to what they earn.
- They feel nickel-and-dimed when parts are added unexpectedly.
- You lose trust before the job is even finished.
Even if you’re working fast and fairly, it feels expensive.
Example: A 90-minute repair with $40 in parts might come out to $240… and the customer is thinking, “You make how much per hour?”
The Flat Rate Advantage: One Price, Clear Choices
With flat rate pricing, your customers know the total cost upfront. No stopwatch. No awkward conversations about labor rates. Just clarity.
And when you add Good, Better, Best options, you turn that clarity into confidence.
| Tier | What It Means |
|---|---|
| Good | Required repairs, the bare minimum to get the system operational, should run 1 year without more repairs. |
| Better | Recommended services, get the system back to manufacture’s original capacity as reasonable, enhanced quality or longer warranty. |
| Best | Highly recommended services, address other issues you or client noticed, best performance, longest lifespan. |
Pro Tip #1: Speak their language. When presenting options, describe them in terms the homeowner understands:
- Good: “This gets the job done with no frills. Budget-friendly, solid fix. It will work but it could work better.”
- Better: “This includes a better-quality part and an extended warranty. We’ll get your system as close to the original performance as possible to last longer and work better.”
- Best: “Top-of-the-line parts. Longest-lasting and best performance. Ideal if you want to set it and forget it.”
Use a tablet or printed brochure to visually display the options. Pictures, warranties, and bullet-point benefits help customers feel like they’re choosing—not being sold.
What Services Deserve Three Tiers?
Not everything needs a Good/Better/Best approach. Your truck has limited space, and not every repair justifies three options.
| Item Type | Approach | Why |
|---|---|---|
| Common Installs (disposals, faucets) | Good/Better/Best | Easy to stock, high variation in quality |
| Low-cost repairs (valves, stops) | One flat rate | Low margin, fewer variables |
| Premium systems (tankless heaters, filtration) | Tiered pricing, warehouse-stocked | High-value, often customer-researched |
Do SPIFFs Belong in Plumbing?
We say yes—as long as you’re honest about it.
Offering a small bonus to a technician for selling the “Better” or “Best” option can motivate them to educate the customer more thoroughly.
Example Dialogue:
“Just so you know, I get $6 if you choose the Better option. The boss does that since he thinks we’ll just go with the cheapest fix to avoid price complaints. But I do want to show you all your options.”
Transparency builds trust. Customers appreciate knowing why you’re offering the options—and that you’re being upfront about incentives.
Presenting Options: Digital or Physical?
You don’t need fancy software (though it helps). You just need a consistent way to present three clear options:
Tablet App
- Tap-to-sign convenience
- Dynamic pricing updates
- Photo-rich experience
Printed Menu
- Great for low-tech environments
- Easy to leave with customer
- Clean, branded design with columns
Pro Tip #2: Keep the layout clean. Three columns. Each option with a title, image, benefits, and price. That’s it. Don’t overwhelm them.
Getting Started with Flat Rate Pricing
Starting small makes implementation easier. Begin with your 10 most common repairs and build tiered options from there.
- Create Your Price Book
Use your software or a spreadsheet to create three price points for key services. Consider labor, materials, and markup. - Train Your Team
Teach them how to present options conversationally and honestly—not like a used car salesperson. - Implement Tracking
Log SPIFFs and upsells in your accounting system. Track which options are most frequently chosen. - Review Regularly
- Use job costing software to track margins by option (Good vs. Better vs. Best).
- Log technician SPIFFs as incentives, not payroll.
- Reconcile price book updates monthly to match vendor cost changes.
Don’t Forget the Back Office
Good pricing practices are only as good as your bookkeeping. Here’s what to keep in mind:
- Track labor and part costs per job—even if you don’t bill that way anymore.
- Log SPIFFs as a separate expense category for visibility.
- Use job costing features in your software to see which options are most profitable.
Final Thoughts
Flat rate pricing with Good, Better, Best options isn’t just a sales tactic—it’s a customer service strategy. It gives homeowners choices, it gives techs motivation, and it gives owners better margins. Best of all, it’s a transparent, honest way to do business.
Ready to start?
Start simple, stay transparent, and train your team to present options confidently. Flat rate pricing is more than a way to get paid—it’s a smarter, cleaner way to do business.
Frequently Asked Questions (FAQs)
1. What if a customer still insists on seeing a time and materials breakdown?
We recommend explaining that flat rate pricing is designed to protect both the customer and the business. Let them know the price is based on average time, labor, and materials, so they get a fair, consistent rate regardless of how long the job takes. This eliminates surprise charges and encourages efficiency.
2. Do I need special software to implement flat rate pricing with Good/Better/Best options?
Not necessarily. You can start with a well-organized spreadsheet or printed price book. However, plumbing-specific software like Total Office Manager® makes it much easier to maintain, update, and present your pricing digitally—especially if you’re using tablets in the field.
3. How do I decide which jobs should have Good/Better/Best options?
Start with high-frequency or high-ticket jobs like water heaters, disposals, or toilet replacements. These are areas where quality and warranty options matter to customers—and where better parts and service levels lead to better margins.
4. Won’t offering multiple options confuse customers or slow down the job?
Not if presented clearly. When customers see all three options laid out with simple language and visuals, they can choose quickly and confidently. This approach actually reduces objections and boosts decision speed.
5. Is it legal or ethical to offer SPIFFs to technicians?
Yes—when done transparently. We recommend disclosing it to the customer in a casual, honest way. It builds trust and gives techs a reason to fully explain all options rather than rushing to the cheapest fix.
