I guess this guy goes and buys a shirt and asks the sales guy "now I want to know what you paid for this shirt"? "How do you figure out how much to charge for the shirt, do you call other stores and ask what they are charging for the same shirt"?
Don't you get it, there is a cost of doing business that needs to be covered, it also includes profit for the business owner. A business could give away free freon with every service call, but they are going to make it up somewhere else in the cost you pay for thier service. It may be a higher trip charge, higher labor rate, higher parts cost, or in the worst case, selling you repairs and parts you don't need. So go ahead and call around town for the cheapest per lb rate on freon, hopefully you need 10 lbs so you can save $20 to help buy your hard start kit, zerol ice and never clean electrostatic 1/4" supper filter, and the new compressor when yours blows a nut due to being overcharged by 6 lbs.
I apologize for the question, i'm new to this site. I quess what i'm curios about is how do most of you arrive at your going price. Do you use a multiplier or just ask everyone else what the're charging in your area.
To be competitive you must price it in-line with your competition. Each company arrives at their price differently, from multipliers to WAG.
If everything was always done "by the book"....the book would never change.
Recently checked with other contractors in our area and we found all charged a different per pound price for 4 of the basic refrigerants we use.
Checked with multiple wholesalers and also found different pricing on the same day with larger price swings on multiple days.
The price is entirely dependent on how its bought in the wholesale markets. How long its carried in inventory, how often its turned over on our side, etc..
In my opinion its no longer possible for us to set a solid price for refrigerants.
Recently sent another note in our billings to our regular customers in effect saying that refrigerants are a commodity item and will be priced accordingly due to the wide swings we see in our purchase prices and replacement costs of existing stocks.
So we try to price refrigerants based on futures costs in the hopes of maintaining some kind of profit.