Price Book Setup: How to Standardize Services and Margins
A well-built price book is one of the most valuable assets in a trade business. It ensures consistent pricing, protects your margins, and speeds up the quoting process. Here's how to create one that works for your business.
What Is a Price Book?
A price book (also called a flat rate book or service catalog) is a standardized list of all the services your business offers, along with their prices. Instead of calculating quotes from scratch every time, you select items from your price book and assemble a professional quote in minutes.
Think of it like a restaurant menu. The chef doesn't negotiate prices with each customer - they have a menu with set prices that cover their costs and desired profit. Your price book works the same way.
Benefits of Flat Rate Pricing
Consistent Margins
Every job is priced to hit your target margin, regardless of who creates the quote.
Faster Quoting
Create professional quotes in minutes instead of hours of manual calculations.
Customer Confidence
Customers appreciate upfront pricing. No surprises means more trust.
Team Scalability
New hires can quote jobs correctly from day one using your price book.
Step 1: Calculate Your True Costs
Before setting prices, you need to understand your costs. Every price book entry should cover:
Direct Costs
- Labor: Burdened hourly rate x estimated time for the task
- Materials: Parts, supplies, and consumables needed
- Equipment: Any specialized tool rental or usage cost
Overhead Allocation
Add a percentage for overhead costs: insurance, vehicles, tools, office, software, marketing, etc. A typical allocation is 15-25% of direct costs.
Profit Margin
Finally, add your desired profit margin. Most successful trade businesses target 20-30% net profit on service work.
Example: Faucet Replacement
Labor: 1.5 hours x $35/hr = $52.50
Materials: Faucet + supplies = $85
Direct Cost: $137.50
+ Overhead (20%): $27.50
Total Cost: $165
+ Profit (25%): $55
Price Book Price: $220
Step 2: Organize Your Service Categories
Structure your price book into logical categories. Here's a sample organization for a plumbing company:
Service Calls & Diagnostics
- Standard diagnostic fee
- After-hours diagnostic fee
- Weekend/holiday diagnostic fee
Drain Services
- Drain cleaning - standard (up to 50ft)
- Drain cleaning - main line
- Camera inspection
- Hydro jetting
Fixture Installation
- Faucet replacement - standard
- Faucet replacement - premium
- Toilet installation
- Garbage disposal installation
Water Heaters
- Water heater flush
- Element replacement
- 40-gallon gas install (standard)
- 50-gallon gas install (standard)
- Tankless conversion
Step 3: Create Pricing Tiers
For many services, offer Good-Better-Best options. This gives customers choice and often increases your average ticket.
| Option | What's Included | Price |
|---|---|---|
| Good | Standard faucet, basic installation, 1-year warranty | $220 |
| Better (Recommended) | Quality faucet, new supply lines, 3-year warranty | $345 |
| Best | Premium faucet, new supply lines + shut-off valves, 5-year warranty | $485 |
Most customers choose "Better" - it feels like the smart middle ground. Your average sale increases without pressure tactics.
Step 4: Account for Variables
Not every job is standard. Build modifiers into your price book for common variations:
- Access difficulty: +15-25% for crawl spaces, attics, tight areas
- After-hours: +50% for evenings, +100% for weekends/holidays
- Travel distance: +$X per mile beyond your standard service area
- Permit fees: Pass through at cost + 10% handling
- Disposal: Separate line item for removing old equipment
Step 5: Review and Update Regularly
Your price book isn't set-and-forget. Schedule reviews to keep it current:
Quarterly: Material Cost Check
Review supplier pricing and adjust material costs as needed.
Annually: Full Price Review
Comprehensive review of all prices, labor rates, and overhead allocation.
Ongoing: Add New Services
When you offer a new service, add it to the price book before quoting it.
Price Increase Tip
Raise prices annually, even if only 3-5%. Costs always rise - if you don't adjust, your margins shrink every year.
Getting Started: Your First 10 Items
Don't try to price everything at once. Start with your 10 most common services:
- 1List your 10 most frequently performed services
- 2Calculate the true cost for each (labor + materials + overhead)
- 3Add your target profit margin to set the price
- 4Create Good-Better-Best tiers for installation services
- 5Enter them into your quoting software
- 6Add more services as you encounter them
Within a few months, you'll have a comprehensive price book that covers 90%+ of your work.
Digital Price Book in JobWright
JobWright includes a built-in price book feature. Add your services and pricing, then pull them directly into quotes with a click. Your team stays consistent, and you can update prices in one place.
Build Your Price Book in JobWright
JobWright's price book feature makes it easy to standardize pricing. Try it free for 7 days.
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