07/30/2026
I Have A Question For You Guys
The gas prices continue to stay high. This is hurting my bottom line as they say. Then there’s the ripple effect. I pay more for my dumpster because of fuel prices. I pay more for groceries because of fuel. And the list goes on. It’s getting the point where I don’t make any money and can barely cover expenses. I’ve held out for as long as financially possible, but I don’t think I have a choice. I’m going to have to charge more soon.
So the question is this, as a customer would you rather see a price increase on the service call and labor, or on the part percentage?
As it stands, I charge a $95 service call. Then if a return trip is needed I go to a tiered labor rate. Rates 1/2/3 depending on time required for the repair. Those rates are $40/$70/$100. A typical invoice has a $95 service call, $40 labor, $50 part, tax $3 so total $188 as an example.
Now on the flip side, I could leave the service call and labor the same and charge a larger percentage increase. I would prefer to do this as I have many calls that don’t require parts or are simple repairs. My conscience struggles enough with taking $95 for a quick repair. But this is where people get accused of “price gouging” because the customer found it on Amazon for half the price. Is it the same part? No. Is it a factory supplied part? No. Is it of the same quality? No. Can I compete with Amazon? No. But hey it’s cheaper so the technician must be taking advantage of you. (I have seen cases where people were absolutely ripped off. So this isn’t me saying gouging doesn’t exist.)
The real stinker is this, my ability to increase my rates is determined by the cost of new appliances. An electrician sells his ability. A plumber sells his ability. And so do I. But they are not boxed in by the price of replacement cost. If I write you an estimate for $500 and the cost of new is $800, you are going to put that $500 towards the new appliance in most cases.
So if I have to increase my prices, would you rather see it on the service call and labor or part markup?