Playbooks

# Plumbing flat rate pricing: how to build a price book that covers your costs

June 16, 2026 · 6 min read · By the Fullweek team

![](/media/agents/dex.jpg)

Dex, Fullweek agent

Short answer

Plumbing flat rate pricing means quoting one fixed price per task before work starts, instead of billing hours plus parts. To build a flat rate price book, calculate your billable hourly rate from overhead, labor cost, billable hours and target profit, then multiply by the task time and add marked-up parts. Offer good, better and best options so customers choose.

## Key takeaways

-   Flat rate gives the customer **one price up front**. Time and materials makes them watch the clock.
-   Your billable rate comes from **overhead plus labor cost, divided by billable hours**, then grossed up for profit.
-   In our worked example, a one-tech shop needs about **$197 per billable hour** to hit a 20% profit target.
-   **Markup is not margin.** A 50% markup on parts is only a 33% margin.
-   Software like **ServiceTitan, Housecall Pro and Jobber** can hold your price book so every tech quotes the same.

On this page

1.  [Flat rate vs time and materials](#flat-vs-tm)
2.  [Step 1: Find your real billable hourly rate](#labor-rate)
3.  [Step 2: Build the plumbing flat rate pricing book](#price-book)
4.  [Step 3: Offer good, better and best options](#good-better-best)
5.  [Common flat rate pricing mistakes](#mistakes)
6.  [Software that holds your price book](#software)
7.  [Pricing only pays if the phone gets answered](#fullweek)

## Flat rate vs time and materials

With time and materials (T&M), you bill hours on the job plus parts. With flat rate, you quote a set price for the task, such as "replace kitchen faucet cartridge", and that price holds whether the job takes 40 minutes or 70.

|  | Flat rate | Time and materials |
| --- | --- | --- |
| Customer sees price | Before work starts | After work is done |
| Who carries time risk | You | The customer |
| Rewards faster techs | Yes | No, faster means less revenue |
| Approval conversations | Short, one number | Long, estimates and change orders |
| Best for | Repeatable service and repair tasks | Unknown scope, remodels, large commercial work |

Most residential service plumbers use flat rate for repeatable tasks and keep T&M or a custom quote for jobs where scope is unknown until a wall is opened. You do not have to pick one for everything.

## Step 1: Find your real billable hourly rate

Every flat price rests on one number: what an hour of billable work must earn to cover everything and leave a profit. Here is a worked example for a one-tech shop. These are example numbers; use your own from your books.

| Line | Example | Notes |
| --- | --- | --- |
| Loaded tech labor cost | $40 per paid hour | Wage plus payroll taxes, benefits, workers' comp |
| Paid hours per year | 2,080 | 40 hours x 52 weeks |
| Yearly labor cost | $83,200 | $40 x 2,080 |
| Yearly overhead | $90,000 | Van, fuel, insurance, software, phone, marketing, office, owner admin time |
| Billable hours per year | 1,100 | Hours actually on paid tasks, not driving or quoting |
| Labor cost per billable hour | $75.64 | $83,200 / 1,100 |
| Overhead per billable hour | $81.82 | $90,000 / 1,100 |
| Break-even per billable hour | $157.45 | Labor plus overhead |
| Rate at 20% net profit | $196.82 | $157.45 / 0.80 |

So in this example the shop needs about **$197 per billable hour**. Notice how much the billable hours line matters. If the tech bills only 900 hours instead of 1,100, break-even jumps to about $192 and the target rate to about $241. Track billable hours honestly; it is the number most shops guess wrong.

Divide, do not multiply, for profit

To hit a 20% profit on the price, divide cost by 0.80. Multiplying cost by 1.20 only gets you about 16.7%.

### Where trip charges and diagnostic fees fit

Many shops charge a service call or diagnostic fee to show up and find the problem, then quote the flat price for the repair. That fee pays for the drive and the time spent diagnosing, which are not billable task hours in the math above. Decide up front whether the fee is credited toward the repair when the customer says yes, and tell callers the fee when they book so nobody is surprised at the door. Members on a maintenance plan often get it waived, which is one more reason to sell plans.

## Step 2: Build the plumbing flat rate pricing book

A plumbing flat rate pricing book is a list of tasks, each with a fixed price built from task time and parts. Build it in this order:

1.  **List your top 50 tasks.** Pull a year of invoices from your field software and sort by frequency. Drain clearing, toilet repairs, faucet cartridges, water heater replacements and hose bibs usually top the list.
2.  **Set a task time for each.** Use your actual average time on site, including setup and cleanup, not your best day.
3.  **Price labor.** Task time x your billable rate.
4.  **Price parts.** Use current supplier cost and a markup that fits the part. Many shops use higher multipliers on small parts and lower ones on expensive equipment.
5.  **Add it up and round.** Flat price = labor + marked-up parts, rounded to a clean number.
6.  **Write the description.** Say what is included and what is not, in plain words a homeowner understands.

### Worked example: toilet fill valve and flapper

| Part of the price | Example | Math |
| --- | --- | --- |
| Task time | 0.75 hours | From your averages |
| Labor | $147.75 | 0.75 x $197 |
| Parts cost | $18 | Fill valve plus flapper |
| Parts price at 2x | $36 | $18 x 2 (100% markup, 50% margin) |
| Flat price | $185 | $183.75, rounded |

The customer sees one number: $185. Your tech does not have to explain hours, and if the job goes fast the shop keeps the difference. If it runs long, that is a signal to update the task time.

## Step 3: Offer good, better and best options

When customers get a single price, the only question is yes or no. With three options, the question becomes which one. Build options for the tasks where a real upgrade exists. Using the same example rate:

| Option | What it includes | Example price |
| --- | --- | --- |
| Good | Replace fill valve and flapper | $185 |
| Better | Fill valve, flapper, new supply line, pull and reseat toilet with new wax ring | $415 |
| Best | Install a new toilet, haul away the old one | $769 |

Each option is priced with the same formula (task time x rate + marked-up parts), so every choice is profitable. Present all three on the same screen or sheet, explain the difference in one sentence each, and let the customer decide. Do not pressure; the options do the selling.

## Common flat rate pricing mistakes

-   **Confusing markup and margin.** A 50% markup on a $100 part is a $150 price, which is a 33% margin. For a 50% margin you need a 100% markup.
-   **Overestimating billable hours.** Drive time, estimates, supply runs and callbacks are not billable. Guess high and every price in the book is too low.
-   **Never updating parts costs.** Supplier prices change. Review costs at least a few times a year and after any big supplier increase.
-   **Copying a competitor's book.** Their overhead, wages and billable hours are not yours.
-   **Flat rating unknown scope.** For a sewer line or a hidden leak, charge a diagnostic first, then quote a flat price once you know the job.
-   **Too many items.** Hundreds of near-duplicate tasks slow techs down. Keep the core book tight and add tasks as you see them repeat.
-   **No callback policy.** Say how long your work is warrantied, so a return trip is not a surprise argument.

## Software that holds your price book

A price book on paper or in a spreadsheet works for one tech. Once you have two, put it in your field service software so every tech quotes the same price and updates reach everyone at once.

-   **ServiceTitan Pricebook Pro:** a prebuilt flat-rate pricebook for plumbing, HVAC and electrical contractors with content updates and tools for techs to present options in the field. Pricing is by quote.
-   **Housecall Pro price book:** calculates flat-rate prices that include labor and materials, and can load a prebuilt flat-rate book powered by Profit Rhino.
-   **Jobber:** lets you save your services and products with set prices to drop into quotes and invoices, which works well for a simpler custom book.

Whichever tool you use, the math above still applies. A prebuilt book is a starting point; adjust task times and your hourly rate to match your shop.

## Pricing only pays if the phone gets answered

A great price book does nothing for the calls you miss. Fullweek answers missed and after-hours calls for plumbers, sorts real emergencies from routine work and books jobs into ServiceTitan, Housecall Pro or Jobber, where your price book is waiting. If you are just getting set up, our guide on [how to start a plumbing business](/blog/how-to-start-a-plumbing-business) covers the steps before pricing. See [pricing](/#pricing) or the [plumbing answering service](/plumbing-answering-service).

## Sources

-   [ServiceTitan: Pricebook Pro](https://www.servicetitan.com/features/pro/pricebook)
-   [Housecall Pro: Price book feature](https://housecallpro.com/features/price-book)
-   [Housecall Pro Help: Preparing your account for the Profit Rhino flat rate price book](https://help.housecallpro.com/en/articles/5799305-how-to-set-up-your-account-for-the-flat-rate-price-book-powered-by-profit-rhino)

## FAQ

What is plumbing flat rate pricing?

It is quoting a fixed price per task before work begins, built from task time, your billable hourly rate and marked-up parts, instead of billing hours and parts after the job.

How do I calculate a flat rate for a plumbing job?

Multiply the task time by your billable hourly rate, add parts at your markup, and round. Your billable rate is labor cost plus overhead, divided by billable hours, then divided by one minus your profit target.

Where can I get a plumbing flat rate pricing book?

You can build your own from your invoice history, or start from a prebuilt book such as ServiceTitan Pricebook Pro or the Profit Rhino book available in Housecall Pro, then adjust it to your own rate and task times.

Is flat rate better than time and materials for plumbers?

For repeatable residential service and repair tasks, many plumbers prefer flat rate because customers see one price up front. For unknown scope or large projects, time and materials or a custom quote is often safer.

How often should I update my price book?

Review parts costs a few times a year and whenever a supplier raises prices, and recalculate your hourly rate whenever wages, overhead or billable hours change.

## Related posts

-   [
    
    ![](/media/agents/tom.jpg)
    
    Tom, Fullweek agent
    
    Guides
    
    ### How to start a plumbing business: a step-by-step guide
    
    How to start a plumbing business as a licensed plumber: state licensing, insurance, LLC setup, van and tool costs, pricing, first customers and answering calls.
    
    Jun 2, 2026 · 6 min read
    
    
    
    ](/blog/how-to-start-a-plumbing-business)
-   [
    
    ![](/media/agents/lena.jpg)
    
    Lena, Fullweek agent
    
    Playbooks
    
    ### HVAC service agreements: what to include and how to price
    
    An HVAC service agreement turns one-off tune-ups into recurring revenue. What to include, a clause outline template, pricing math, selling and renewals.
    
    Jun 9, 2026 · 6 min read
    
    
    
    ](/blog/hvac-service-agreements)

## Related pages

-   [Plumbing answering service](/plumbing-answering-service)

## See what your city is missing

Free audit: your Google profile vs the top 3 in your city, missed-call signals in your reviews, and the jobs you are losing.

[Get free audit](/#audit)

On this page

1.  [Flat rate vs time and materials](#flat-vs-tm)
2.  [Step 1: Find your real billable hourly rate](#labor-rate)
3.  [Step 2: Build the plumbing flat rate pricing book](#price-book)
4.  [Step 3: Offer good, better and best options](#good-better-best)
5.  [Common flat rate pricing mistakes](#mistakes)
6.  [Software that holds your price book](#software)
7.  [Pricing only pays if the phone gets answered](#fullweek)

---
Canonical URL: https://usefullweek.com/blog/plumbing-flat-rate-pricing
Title: Plumbing flat rate pricing: build a price book that pays