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Pricing Strategy

Stop Giving Free Estimates: Price for Profit

You're selling expertise, not just parts. Here's how to structure your pricing to filter out tire-kickers and increase margins.

6 min readUpdated Feb 5, 2026
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The most expensive words in the HVAC industry are "Free Estimate." When you offer them, you attract price shoppers who want a diagnosis for free so they can buy the part on Amazon.

Profitable shops don't sell time; they sell solutions. Here are the three pricing rules that separate the growing businesses from the struggling ones.


1Rule #1: Charge for the Diagnosis

Your truck, your tools, and your 10 years of experience cost money. A "Service Fee" or "Diagnostic Fee" ($89-$129) filters out serious customers from window shoppers.

Waive the fee if they proceed with the repair. It builds goodwill without risking your time.

2Rule #2: Flat-Rate > Hourly

Customers hate watching the clock. If you fix it in 15 minutes because you're an expert, you shouldn't be punished with a smaller bill.

Hourly

Hourly: $150/hr (Customer watches you work)

Flat Rate

Flat Rate: $350 to fix the Capacitor (Customer pays for the result)

3Rule #3: The Good-Better-Best Offer

Never give just one price. Give three. It shifts the psychology from "Should I buy?" to "Which one should I buy?"

  • Good: Fix the immediate problem ($350)
  • Better: Fix + Maintenance Plan ($495)
  • Best: Fix + Maintenance + IAQ upgrade ($850)

Copy This Email: The 'Stalled Quote' Follow-Up

Subject: Quick question about [Project]

Hi [Name],

I'm finalizing our schedule for next week and wanted to see if you were still interested in moving forward with the [System Replacement]?

If not, no worries—I'll close out the file on my end so I don't keep bugging you.

Cheers,
[Your Name]
[Visual: Good-Better-Best Quote Example]

Automate Your Pricing with ServiceHub

ServiceHub is built to support this profitable pricing model out of the box.

  • Built-in Service Call Fees: Automatically added to every booking.
  • Flat-Rate Line Items: Build a price book of common repairs.
  • Good-Better-Best Quotes: Send multi-option quotes in seconds.

?Frequently Asked Questions

Should I charge a diagnostic fee?
Yes. A diagnostic fee (usually $89-$129) filters out price shoppers and covers your travel/diagnosis time.
What is flat rate pricing?
Flat rate pricing means charging a fixed price for the repair (e.g., "$350 for capacitor replacement") rather than hourly. It builds trust because customers know the price upfront.
How do I present Good-Better-Best options?
Always offer 3 choices: "Good" (Fix only), "Better" (Fix + Maintenance), and "Best" (Fix + Maintenance + IAQ/System upgrades).

Start protecting your margins

Stop guessing. Start pricing for profit with ServiceHub.