What’s in a Price?

December 20, 2016

In the service industry, we are constantly asked about our prices. A lot of people want to understand how we determine the price of a service or product. Some people think it is based on the hourly rate of the technician or that we just pick a number out of thin air. Many factors play a role in determining pricing for services, parts, and equipment.

When you pay a service company, you aren’t just paying the technician. If that were the case, there would be no money for the company’s overhead. The company makes all of its money and pays all of its bills from the combination of calls per month. Here’s what factors and costs influence the pricing process.

• Technician salary
• Other salaries (managers, customer service, office staff, etc.)
• Training
• Vehicles
• Equipment and tools
• Office maintenance and supplies
• A healthy stock of replacement parts
• Insurance
• Mortgage/Rent
• Utilities
• Taxes
• Employee benefits
• Quality Control
• Marketing and Advertising

A business has a lot of expenses that help keep it running smoothly. Service calls and product sales are how they make money to pay them!

Here at Lindstrom Air Conditioning & Plumbing, we strive to give our customers a great price along with their great air conditioning and plumbing service. We hope this explanation gives you a better understanding of the cost of your repair or service. Be sure to check out our specials page to see what special offers you can take advantage of this month!