Operations · Playbook
How to set up a service menu (flat-rate pricing book)
Move from per-job custom quoting to a flat-rate menu that lets your team quote in 5 minutes from the truck. The methodology, pricing math, and rollout plan.
A service menu (or "flat-rate book") is a documented set of common services with predetermined pricing. Each customer encounter pulls from the menu rather than building quotes from scratch. The benefits compound across operations: faster quoting, consistent pricing across techs, easier customer-facing communication, and meaningful margin protection.
Most service operations transition to flat-rate menu within 1-3 years of starting. Operators who never make the transition spend disproportionate time on custom quoting and have inconsistent margin across jobs.
The phases
Phase 1
Audit current job mix
Week 1-2
Pull last 90 days of completed jobs from your FSM platform or invoicing system. Categorize each job by type — what was the work? Group similar jobs together (e.g., all "AC tune-up" jobs go together regardless of brand or specifics).
For each category, calculate: average job duration, average parts cost, average final price charged, and standard deviation in each. The output: a list of 30-80 service categories that represent 80%+ of your work, with baseline data on each.
Categories representing under 5 jobs in 90 days are typically too low-volume to warrant menu inclusion — handle as custom quotes.
Checkpoints
- 90 days of completed jobs categorized
- Top 30-80 service categories identified
- Average duration + parts + price documented per category
Phase 2
Build pricing for each category
Week 2-4
For each service category, calculate: loaded labor cost (hourly wage + benefits + overhead, typically $80-$150/hour) × average duration + parts cost (with 25-40% markup) + target margin (typically 50-65% gross margin).
Example for AC capacitor replacement: 1 hour labor × $120 = $120 + $25 parts × 1.30 markup = $32.50 + 60% margin → $381 menu price.
Review pricing against current market — your prices should be within ±10% of established competitors. Significantly below market signals underpricing; significantly above signals you may need to validate value differentiation.
Build three-tier pricing where appropriate (basic / standard / premium) — particularly for installs and replacements. Three-tier presentation lifts average ticket size 15-30%.
Checkpoints
- Pricing calculated for all categories
- Market validation against 3-5 competitors
- Three-tier pricing for install/replacement categories
Phase 3
Roll out to team and refine
Week 4+
Train techs on menu use during weekly meeting. Walk through the most common categories together. Practice quoting a simulated customer using the menu. Address questions about edge cases.
Monitor the first 30-60 days of menu use. Track: which categories get used most (validate they're priced right), which custom quotes happen anyway (may indicate menu gaps), customer pushback on specific categories (may indicate market mispricing).
Quarterly menu review: update prices for inflation (typically 3-5% annually), add new categories that emerged, retire categories no longer relevant. Most operations refresh menu every 12-18 months for major review.
Checkpoints
- Team trained on menu
- First 30 days of menu-driven quoting
- Quarterly review schedule established
Common pitfalls
Pricing menu by gut without margin math
Menus built on instinct often have categories that lose money silently. The math discipline (loaded cost + margin target) prevents this.
Skipping the pricing-against-market step
Pure cost-plus pricing ignores customer-side market constraints. Validate against competitors to ensure prices are within market range.
Locking the menu and never updating
Labor costs rise, parts costs change, market shifts. Menus need quarterly minor updates and annual major reviews to stay current.
What good looks like
- Menu covers 80%+ of job volume
- Quote-build time under 5 minutes for menu services
- Per-tech pricing consistency (same category, same price across all techs)
- Quarterly review cycle established
Frequently asked
Ready to see what an honest tool feels like?
Start your 14-day free trial. No credit card. Cancel anytime.