Sometimes, it’s hard to understand why you’re paying $200 for a part that costs $50 & took a half hour to replace. We hear this a lot from home owners all over the country that don’t really understand why their invoice is the price it is, and why quotes from 3 similar companies are vastly different in price. Here at Paschal Air, Plumbing, & Electric, we believe that service pricing must be fair to the homeowner, and provide ample revenue for the company to survive, prosper, and continue to provide great service. While we can’t speak for the rest of the industry, we are open & transparent about our pricing – here are the 4 major factors that determine our cost of service.
Equipment & Materials – 48%
The direct cost of supplies, equipment, and materials makes up 48% of the cost of our services.
- This includes supporting materials for the installation of your equipment as required by local & state mechanical code, and for equipment efficiency & performance.
- This also includes supply chain costs, such as access to on-demand distribution channels, inventory for our fully stocked trucks & trailers, and readily available inventory for our warehouses.
As we have seen in recent months, supply chain issues can drastically affect equipment & supply prices in the short term. This year alone we have seen multiple price increases set by parts and equipment manufacturers, and supply chain disruptions that have caused inventory to become scarce across the country.
Customer Support – 28%
We aren’t a one man job. When you need us, there will always be someone available to answer your call. But customer support goes far beyond just answering the phone. The factors that make up customer support include:
- Insurance: Mistakes happen, that’s why it’s essential to always be prepared. This includes our general liability to protect your property, vehicle insurance as required by state and federal laws, and other insurances required to be carried in the event of any liability on our part.
- Training: This includes funds spent to recruit new technicians, tuition costs to train our technicians, continuing education for our technicians to stay up-to-date with their skill sets, and resources provided to our technicians to be the best that they can be.
Labor – 14%
Our labor costs include the direct technician’s wages. This is what we pay them to complete the jobs they do.
- Our labor costs include the top pay in the industry in order to deliver Paschal standard service.
- This also includes indirect labor costs that the technicians accrue, such as time spent travelling to and from jobs, time spent in training, incentives, and benefits such as health, life, and dental insurance, as well as 401k matching and retirement planning.
Profit – 10%
The profit made on each job is used to re-invest in the growth of our people, our processes, and our community.
As you can see, we charge only what is needed to complete a job the right way. While we can’t speak for every home service company in Arkansas, or across the country, we only charge what is fair to the home owner, and what allows us to complete jobs without cutting corners.