1. Your true hourly cost
2. Parts and equipment markup tiers
Marginal, like tax brackets: each slice of a ticket's parts and equipment cost earns its own markup. The last tier has no ceiling.
| Cost up to ($) | Markup (%) |
|---|---|
| Above that |
3. One service call
Good: repair
Better: repair plus
Best: replace
Who chooses what. Of customers who approve work, the shares below must add up to 100. These are your assumptions: replace them with counts from a month of your own tickets.
Your three options
| Line | Good | Better | Best |
|---|
Cost, diagnostic fee and the average call
| Line | Value |
|---|
If more customers choose Best
| Choose Best | Choose Good | Average ticket | Average profit per call | Profit per hour of your time |
|---|
If more customers decline
| Calls ending at the diagnostic fee | Average ticket | Average profit per call |
|---|
Parts and equipment markup, slice by slice (Best)
| Cost slice | Amount | Markup | Markup $ |
|---|
4. Price-book builder
Each row is a call type priced at all three options with the shop numbers and markup tiers above. The starting rows are invented examples; replace them with your own call types and hours.
| Call type | Good h | Good parts $ | Better h | Better parts $ | Best h | Best parts $ | Good | Better | Best |
|---|
What's recognised
| Input | Handling |
|---|
More: How to price Good, Better and Best HVAC repairs and this calculator vs. quoting one repair price.
Common questions
How do I price Good, Better and Best HVAC repair options?
Price each option the same way: your true cost per billable hour times its hours including the drive, divided by one minus your target margin, plus parts or equipment at a tiered markup, grossed up for a callback reserve and rounded up. On the default numbers that gives $745.00 for Good, $1,480.00 for Better and $8,890.00 for Best. Enter your own figures; the defaults are invented.
What is my true cost per hour as an HVAC contractor?
Your loaded wage spread over the hours you can actually bill, plus van, insurance, tools and overhead over the same hours. On the defaults that is $78.00 for wages and burden plus $35.00 for van, insurance, tools and overhead, $113.00 for every billable hour, because only 1,200 of 2,080 paid hours are sold.
What should an HVAC diagnostic fee cover?
At least the drive and the time on site to find the fault, at true cost and your margin. On the defaults that is 1.5 hours, $169.50 of cost and a $265.00 fee, which many shops credit against the repair the customer approves.
How much does offering three options add to an average call?
On the defaults, with 50, 35 and 15 percent of approvals choosing Good, Better and Best and 20 percent of calls ending at the diagnostic fee, an average call earns $580.14 against $249.82 when only the Good repair is offered, a gain of $330.32. Your mix and decline rate are assumptions to replace with your own ticket counts.
Is this advice or a price guide?
No. It does arithmetic on the numbers you type. Prices, costs and hours are yours to check, nothing is uploaded, and it is not business, tax, legal or licensing advice. Check your local licensing, refrigerant-handling and written-estimate rules.