Flat rate pricing isn’t new, and you’ve probably come face-to-face with it more times than you can count. Have you ever taken your car into a garage to have it fixed? Think about going to a restaurant and ordering anything off of the menu. Those are just two examples of flat rate pricing and how it’s in our everyday lives. With flat rate pricing, there are no hidden fees, the customer understands what the cost of the product/service will be prior to paying; it’s tremendously beneficial for the customer and for the business.
Picture yourself at your home with a service technician. (Time traveling sound effect with lights taking you to this destination.) You’re speaking with the technician about your air conditioner and that it’s not working properly. He/she inspects the unit and tells you that it’s most likely x, y, and of course… z. So it’s going to be $215 to fix the unit and have it running like new again within the hour. BUT, if it takes longer, you’re not going to be paying any more for that service. How is this possible? Since the cost of these parts, the labor, and everything else necessary is built right into the cost of the repair, it won’t matter if it takes 30 minutes or 2 hours. The cost to the customer will be $215. This is just one tremendous advantage of flat rate pricing.
So, take yourself back to that scenario before, but we won’t need the time traveling effects since we’re just scrolling with our eyes now. Let’s say the technician quoted the repair at $215 and while he/she is fixing the unit, finds another problem. Now there’s an additional repair and it’s going to cost $300 instead of $215. Now the technician has to go back to the customer and tell them the price has increased because an additional repair is required. The best way around this scenario is to tell the customer upfront that barring any unforeseen problems, the repair will be $215. This way, the customer and the technician are aware that there could be an additional repair that would increase the price. If that's the worst scenario that can happen with flat rate pricing, you're in good shape!
Can I learn more?
You can always learn more, that’s why we at Coolfront provide you with the necessary tools you need! Included in this blog is a tremendous resource of flat rate pricing videos and how to implement it into your business. If you’re still on the fence about implementing it, these videos will help to better inform you and maybe make you jump the fence once and for all!