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New Service Pricing Methods: Flat Rate and Calculated Rate

You can now set prices with a rate – and update them in one place for all related services.

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Written by Julia

Auto repair shops, construction crews, and field service teams often price their work not on cost, but on a rate: the price of a standard hour of repair, a square foot of tile installation, a mile of travel, or an hour of a technician's time. Until now, you could set a service price manually or as a markup on cost. So whenever your rate changed, you had to recalculate and update prices yourself.

Now Orderry does it for you: enter a rate once, and the system calculates and updates prices for all related services – both those sold by the hour or square foot and those priced using standard times.

Rate – a new price type

In the service price settings, next to the familiar markup, there's a new type: Rate. A rate is an amount in your company currency that Orderry uses to calculate the service price. You'll find the new type under Settings → Prices and Discounts, on the Services tab, in the Type field.

Change the amount, and the new prices appear in your service profiles right away. You can also edit a rate directly from a service profile: click the price name in the price table to open its settings. This is available to employees with permission to edit service price settings.

The Rate unit field is optional. If you leave it set to No unit, the rate applies to services with any unit of measure. If you specify a unit, such as an hour, the rate is only available for services with compatible units – minutes, hours, standard hours, or days. Orderry converts it automatically: $60 per hour becomes $1 per minute for a service measured in minutes. For now, a rate with a unit can't be set as the default price.

Learn step by step how to create a rate-based price for services in our Knowledge Base.

Flat rate and calculated rate

You can apply a rate in two ways:

  • Flat rate – the amount becomes the unit price of the service. It works for jobs sold by the hour, mile, or square foot. For example, with a rate of $40 per hour, two hours of work in a work order will cost $80.

  • Calculated rate – the amount is multiplied by the planned quantity specified in the service profile. It works when the service price is based on standard times.

If a rate unit is specified, in both cases Orderry first converts the rate to the service's unit.

To support calculated rates, a new Planned quantity field has been added to the service profile, next to the Duration field. It sets the standard amount of work for one service and is measured in the same units as the service itself, for example, standard hours or square feet. This is what the rate is multiplied by, while duration is still used for scheduling.

For example, the Clutch replacement service is measured in standard hours: the planned quantity is 10 standard hours, and the duration is 5 hours (two mechanics work on it together). With a rate of $40 per standard hour, the service price will be $400. By default, the service is added to a work order with a quantity of 1 and the same amount. Duration doesn't affect the price.

You can see the calculated price right away in the price table of the service profile. If the planned quantity isn't filled in, Orderry won't use a zero price – it will prompt you to enter it.

Quantity in work orders – from duration or planned quantity

Previously, the Use service duration as quantity setting applied to all services at once. Now each price has its own Set initial quantity when adding a service setting instead.

For markup and flat rate, the quantity can come from the planned quantity or the duration. For calculated rate, it can only come from the duration, since the planned quantity is already included in the price. Quantity from duration is only filled in for services measured in minutes, hours, standard hours, or days. You can also turn the setting off.

For example, the Hourly price has a rate of $40 per hour, and the quantity comes from the duration. A service with a duration of 2 hours is added to a work order with a quantity of 2 and an amount of $80. As before, you can change the quantity manually.

If the old setting was enabled, we've already moved it to all your service prices, so the quantity will still come from the duration.

Rates already work in the Orderry web version – in work orders, sales, invoices, and bookings. You can change rates and planned quantities with bulk actions, through the corresponding imports, or via the API. After the Orderry update, your current service prices stay the same, and from now on, catalog prices will follow any changes to the rate. Items already added to documents keep their prices and quantities.

Have questions or ideas about rates? Message our support team in the chat – we're always here to help.

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