The Perils of Pricing for Heating & Cooling Contractors

Jim D’Amico, President of Profit Strategies Inc., has an interesting post on the Coolfront blog about the challenges of pricing jobs for customers using traditional time and materials methods. Entitled The Dirty Dozen of Time & Materials Pricing – Is It Hurting Your Business?, the post explores some of the pricing hazards that heating and cooling contractors face. Profit Strategies is the provider of the Coolfront pricing app.

Here are the first two points in D’Amico’s “dirty dozen”:

1. Quoting an hourly rate causes customers to measure your ability to satisfy their service needs only on what you charge per hour, not on your proficiency and skill in solving their problems.
   
   
2. Quoting labor rates has a built-in threshold above which customers will not go beyond. For some it may be $60 per hour, for others it may be $120 per hour, but everyone has a “Do not exceed” limit on what they are willing to spend per hour for service.

Read D’Amico’s complete post here.

Read an Oil & Energy article about Coolfront here.

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