How Should We Structure Diagnostic Pricing?

A Contractor University Member recently utilized the Ask-The-Expert Q&A feature within the member dashboard by submitting the following question and received the response below.

Contractor Question:

“What is the best way to structure diagnostic pricing?”

Contractor University Expert Response:

“Your diagnostic fee should be simple, strategic, and profitable.

Start by knowing your real costs. If it costs you $374 in overhead and $100 in labor, your breakeven is $475 for a two-hour service call—before parts. If your average ticket is around $850, you’ve got margin, but only if you’re pricing correctly.

Use a flat diagnostic/trip charge:

• Standard: $89
• Club members: $49

This not only covers costs—it drives club signups and builds customer loyalty.

Second trip?

Either build it into your flat-rate repair pricing or clearly state a return visit fee (often waived for club members).

Want to raise average tickets?

• Use flat-rate pricing
• Raise prices strategically
• Train your techs to educate and offer complete solutions
• Bill for all work
• Track labor-to-labor sales
• Promote accessories and club agreements

A well-structured diagnostic charge sets the tone for profitable, value-driven service.”

Contractor University members can click here to log in to their member dashboard and submit a question through the Ask the Expert portal.