How to Build a Flat-Rate Price Book for a Small HVAC Shop
Updated August 28, 2026
A small HVAC shop builds a flat-rate price book the same way a small electrical shop does: work out what an hour of the shop really costs, add the margin you want, then price each repair as hours times that rate plus marked-up parts, graded for difficulty. The HVAC-specific parts are the task list (diagnostics, repairs, maintenance agreements, and changeouts each behave differently), the parts markup structure (a capacitor and a compressor should not carry the same percentage), and the seasonal billable hours that make a summer rate and a March rate feel like two businesses. Here is the method for a one or two tech shop, with one worked example carried all the way through.
Start with the shop rate, not the price list
Enterprise flat-rate systems for HVAC start with a rate the software vendor assumes; most small shops copy prices from a bigger competitor. Both skip the number that matters.
Build it from your own year:
| Input | Value |
|---|---|
| Overhead (van, fuel, insurance, phone, tools, gauges and recovery gear, software, licenses and EPA cert, marketing, admin) | $27,200 |
| Owner salary target | $85,000 |
| Burden (SE tax, health, retirement) | 20% |
| Owner labor cost | $102,000 |
| Total annual cost | $129,200 |
| Weeks worked | 48 |
| Hours per week | 50 |
| Billable share | 55% |
| Billable hours | 1,320 |
| True hourly cost | $97.88 |
| Shop rate at 15% margin | $115.15 |
| Rounded shop rate | $120 |
The $27,200 is a realistic solo number; HVAC shops with a recovery machine, vacuum pump, combustion analyzer and refrigerant inventory often run higher, so put your real lines in. The free Trade Hourly Rate Finder does the arithmetic and lets you change any input.
The HVAC task library
Group tasks so a tech can find one with a customer watching. Seven categories cover residential service:
- Diagnostics - no cool, no heat, short cycling, refrigerant leak search, combustion analysis, airflow and static pressure test
- Electrical repairs - capacitor, contactor, fan relay, control board, transformer, hard-start kit, thermostat replacement
- Mechanical repairs - condenser fan motor, blower motor, inducer motor, igniter, flame sensor, pressure switch, gas valve
- Refrigerant - leak repair and recharge by charge size, TXV, line-set repair, drier
- Drain, ductwork and airflow - condensate line clear, pump, duct repair, register and damper, filter rack
- Maintenance - AC tune-up, furnace tune-up, heat pump tune-up, maintenance agreement visits
- Changeouts and add-ons - condenser only, air handler, full system, mini split, UV light, humidifier, surge protection
Fifty to eighty tasks. Take the base hours from your own invoices; if you have replaced 60 capacitors you know it is a 0.5 hour job with the diagnostic done.
Grades: the same idea, HVAC reasons
Use three grades on base hours: Easy 0.80, Normal 1.00, Hard 1.35. In HVAC the Hard grade is usually access, not the repair: attic air handler in July, crawlspace furnace, rooftop package unit with no ladder access, a condenser buried behind a fence. Pick the grade on site; the customer sees one price.
Parts markup by tier, not one number
Electrical parts and HVAC parts have very different cost curves. A single markup percentage either gouges on the compressor or gives away the capacitor. Use tiers:
| Part cost | Markup | Example |
|---|---|---|
| Under $25 | 100% or more | Capacitor, contactor, flame sensor |
| $25 to $150 | 50 to 75% | Motors, boards, igniters |
| $150 to $600 | 30 to 40% | Blower motor, TXV, larger boards |
| Over $600 | 15 to 25% | Compressor, coil, equipment |
Tiered markup on small parts is normal in the trade and customers rarely push back on a $40 capacitor; they push back on a $2,400 compressor at 60 percent. The engine can hold a tier table and apply it by part cost.
Worked prices at $120
Twenty-five percent markup on a mid-tier part, $150 minimum job charge, Normal grade.
| Task | Base hours | Part cost | Labor | Part with markup | Price |
|---|---|---|---|---|---|
| Diagnostic, no cool | 1.0 | $0 | $120 | $0 | $120 (service call) |
| Replace dual run capacitor | 0.5 | $18 (tiered at 100% = $36) | $60 | $36 | $100 -> $150 minimum |
| Replace contactor | 0.5 | $22 (tiered at 100% = $44) | $60 | $44 | $105 -> $150 minimum |
| Replace condenser fan motor | 1.5 | $140 (50% = $210) | $180 | $210 | $390 |
| Clear condensate line and add pan switch | 1.0 | $30 | $120 | $60 | $180 |
| AC tune-up | 1.25 | $10 | $150 | $20 | $170 |
The rule that usually gets the diagnostic and the repair right: charge the diagnostic fee to find the fault, quote the repair from the book, and waive part of the diagnostic if the repair is approved on the spot. The book prices must still clear your minimum without the diagnostic.
The season trap
A one-tech shop can be 80 percent billable in July and 35 percent in March. If you set the rate on July hours you will lose money nine months a year. Use the full-year average - 55 percent is a realistic figure - and use maintenance agreements to fill the shoulder seasons rather than dropping the rate. A maintenance agreement priced from the book (two tune-up visits at $170 each less a modest agreement discount) is worth more than any spring promotion.
Changeouts are bids, not book prices
Full system replacement varies too much for a flat price. Price it as a bid from the same engine: estimated hours by grade, equipment cost at its tier markup, plus permit, crane if needed, disposal and start-up. Keep the book for repairs and maintenance, which is where the volume and the margin live for a small shop.
Build it in a weekend
Saturday: the engine (overhead lines, salary, burden, hours, billable share, margin) on one tab, producing a shop rate cell. Then the task list with base hours and typical part cost. Sunday: the price book tab (three prices per task from the formula above, rounded to $5 with a minimum), a tier table for parts, and a ten-line quick quote. The electrical version of this walk-through is in our price book guide; the spreadsheet mechanics are identical.
Next step
Put your real overhead and salary into the free Trade Hourly Rate Finder. If the rate that comes out is not the one on your invoices, that is the first thing to fix.
Frequently asked questions
Should refrigerant be priced per pound or per job? Per job by charge size (small, medium, large system), with the leak repair as a separate line. Per-pound pricing invites arguments over the scale and exposes your cost. Recovery and vacuum time belong in the base hours.
How much should the diagnostic fee be? For a $120 shop rate, $99 to $149 covering the trip and the first 45 to 60 minutes is typical. Many shops apply part of it to the repair if approved on the visit.
What about after-hours calls in the summer? A 1.5x labor multiplier on the book price for after-hours and 2x for holidays and weekends is standard. Put it on the service call agreement so it is agreed before the truck leaves.
Do I need a different book for heat pumps and gas furnaces? One book with the categories above and separate tasks where the components differ (igniter and flame sensor for gas; reversing valve and defrost board for heat pumps). Base hours differ per task, not per book.