How to Build an HVAC Pricebook That Maximizes Profits

Why Every HVAC Company Needs a Pricebook

A pricebook is your competitive advantage. It means:

• Consistent pricing (no more guessing)
• Faster estimates (look up, don't calculate)
• Better training (techs know what to charge)
• Higher profits (strategic pricing, not reactive)

Let's build one from scratch.

Step 1: Gather Your Data

Before setting prices, you need to know your numbers:

Your Costs

• Average technician fully-loaded cost (hourly)
• Vehicle costs per hour
• Average material costs for common repairs
• Overhead per billable hour

Your Market

• What do competitors charge?
• What are customers willing to pay?
• What makes you different?

Your History

• What have you charged for similar jobs?
• Which jobs are profitable vs. unprofitable?
• Where are you leaving money on the table?

Step 2: Set Your Hourly Rate

Your hourly rate is the foundation. Here's a quick calculation:

Annual Overhead: $180,000 Billable Hours/Year: 1,800 Overhead per Hour: $100

Technician Cost: $55/hour (loaded) Truck Cost: $15/hour Direct Costs per Hour: $70

Total Cost per Hour: $170 Target Margin: 35% Hourly Rate: $170 / (1 - 0.35) = $262/hour

Round to $265 or $275 for simplicity.

Step 3: Categorize Your Services

Organize services into logical categories:

1. Diagnostics & Service Calls
2. AC Repairs
3. Heating Repairs
4. Maintenance
5. Installations
6. Indoor Air Quality
7. Ductwork
8. Thermostats & Controls

Step 4: Build Your Price List

Here's a sample HVAC pricebook structure:

Diagnostics & Service Calls

| Service | Time | Price | |---------|------|-------| | Standard diagnostic (first hour) | 1.0 | $175 | | Additional diagnostic time | 0.5 | $95/half hour | | After-hours diagnostic | 1.0 | $245 | | Weekend/holiday diagnostic | 1.0 | $295 | | No AC call - simple fix | 0.5 | $125 |

AC Repairs

| Service | Time | Price | |---------|------|-------| | Capacitor replacement | 0.5 | $185 | | Contactor replacement | 0.75 | $225 | | AC fan motor | 1.5 | $425 | | Compressor hard start kit | 0.5 | $195 | | Refrigerant recharge (per lb) | 0.25 | $85/lb | | Evaporator coil cleaning | 2.0 | $385 | | Condenser coil cleaning | 1.0 | $225 | | AC drain line clearing | 0.5 | $145 | | Thermostat wire repair | 0.75 | $165 |

Heating Repairs

| Service | Time | Price | |---------|------|-------| | Ignitor replacement | 0.75 | $245 | | Flame sensor cleaning/replacement | 0.5 | $165 | | Gas valve replacement | 1.5 | $485 | | Blower motor replacement | 2.0 | $595 | | Heat exchanger inspection | 1.0 | $195 | | Inducer motor replacement | 1.5 | $525 | | Pressure switch replacement | 0.75 | $195 | | Limit switch replacement | 0.5 | $165 |

Maintenance

| Service | Time | Price | |---------|------|-------| | AC tune-up | 1.0 | $149 | | Heating tune-up | 1.0 | $149 | | Complete system tune-up (AC + Heat) | 1.75 | $249 | | Mini-split maintenance | 1.0 | $175 | | Maintenance plan (annual) | — | $299/year |

Thermostats & Controls

| Service | Time | Price | |---------|------|-------| | Basic thermostat install | 0.75 | $195 | | Smart thermostat install | 1.0 | $285 | | Smart thermostat + setup | 1.25 | $345 | | Zoning panel repair | 1.5 | $395 |

Indoor Air Quality

| Service | Time | Price | |---------|------|-------| | Air filter replacement (standard) | 0.25 | $45 | | Air filter replacement (high MERV) | 0.25 | $85 | | UV light installation | 1.5 | $695 | | Whole-home humidifier install | 3.0 | $895 | | Air purifier installation | 2.0 | $1,495+ |

Step 5: Create Good-Better-Best Tiers

For major services, offer tiered options:

Example: AC Tune-Up

Good - $149

• 21-point inspection
• Filter check
• Coil rinse
• Refrigerant check

Better - $199

• Everything in Good
• Coil treatment
• Drain line treatment
• Capacitor test
• Written report

Best - $279

• Everything in Better
• Full coil cleaning
• Blower cleaning
• Duct inspection
• Efficiency recommendations
• Priority scheduling for repairs

Step 6: Account for Variables

Your base prices need modifiers:

Access Difficulty

• Attic unit: +$75
• Rooftop: +$125
• Crawl space: +$100
• Commercial height: +$150

Timing

• After hours (6pm-8am): +40%
• Weekend: +50%
• Holiday: +75%

Travel

• Beyond 20 miles: +$2/mile
• Second trip required: +$75

Step 7: Installation Pricing

Installations are typically quoted separately, but here's a framework:

AC/Furnace Installation Components

| Component | Range | |-----------|-------| | Equipment (cost + markup) | Cost × 1.35 | | Labor (standard install) | 8-12 hours | | Labor (complex) | 12-20 hours | | Permit fees | Pass-through + 10% | | Miscellaneous materials | $150-400 |

Sample System Prices (Installed)

| System | Good | Better | Best | |--------|------|--------|------| | 2-ton AC | $4,800 | $5,800 | $7,200 | | 3-ton AC | $5,400 | $6,600 | $8,100 | | 80% Furnace | $3,200 | $3,800 | $4,600 | | 95% Furnace | $4,200 | $4,900 | $5,800 | | Complete System (3-ton) | $7,800 | $9,500 | $12,500 |

Step 8: Review and Adjust

Your pricebook is a living document:

Monthly

• Check profitability by service
• Identify underpriced services
• Update for material cost changes

Quarterly

• Compare to market rates
• Review close rates by service
• Adjust seasonal pricing

Annually

• Full pricing review
• Update labor rates
• Add new services
• Remove obsolete items

Common Pricebook Mistakes

1. Pricing too low - Fear of losing jobs leads to thin margins
2. Not updating - Material costs change; prices should too
3. Too complicated - 500 line items overwhelms techs
4. No tiers - Single pricing leaves money on the table
5. Ignoring overhead - Covering parts and labor isn't enough

Key Takeaways

1. Know your true hourly cost before setting prices
2. Organize services into logical categories
3. Include modifiers for access, timing, and complexity
4. Offer Good-Better-Best tiers for major services
5. Review and adjust quarterly at minimum
6. Train your team to use the pricebook consistently

Get Started with EstimateBuilderPro

Our software includes:

• Pre-built HVAC pricebook (customizable)
• Automatic tier generation
• Material cost updates
• Profitability tracking
• Mobile access for techs

Start your free trial and build your pricebook in under an hour.