If you're starting an appliance repair business or running one already, pricing is the thing that determines whether you make a good living or stay busy and broke. Most techs undercharge. This guide gives you the real numbers.

The Pricing Mistake Most New Techs Make

Charging too little. Every new tech does it. You're nervous about losing the call, so you quote $20 less than everyone else. Then $30 less. Then you're running 6 calls a day and can't figure out why you're not making money.

The race to the bottom attracts the worst customers. Price-shoppers who call four companies, pick the cheapest, and leave a 1-star review because you charged $10 for a part that costs $3. Meanwhile, the customer who would happily pay $150 for a quality repair hired the other guy because you looked too cheap to be good.

Your time, expertise, tools, van, insurance, gas, and phone all cost real money. If you're not covering those costs plus a healthy margin, you don't have a business — you have an expensive hobby.

Service Call / Diagnostic Fee

This is your fee to show up, diagnose the problem, and provide a quote. $80-$120 for residential. $100-$150 for commercial. This is standard in most US markets in 2026.

Your diagnostic fee should cover your drive time plus 30 minutes of diagnosis on-site. That's the minimum to make the trip worthwhile.

Should you waive the diagnostic if the customer approves the repair? I don't recommend it. Here's why: waiving your diagnostic fee tells the customer that your expertise has no value — that showing up, pulling panels, running tests, and identifying the problem isn't worth paying for. It also attracts price-shoppers who will call you for a free diagnosis, then hire someone cheaper to do the repair.

Some shops do it successfully. My advice: if you're going to waive, only do it on repairs over a certain threshold. Under $200 total? Diagnostic stands. Over $300? Roll it in. But make it a conscious decision, not a default.

Hourly Labor Rate

$100-$150/hour is typical for appliance repair in 2026, depending on your market, experience level, and cost of living in your area.

Here's how to calculate your minimum rate:

  1. Add up your monthly business expenses: van payment, insurance, gas, tools, phone, software, parts inventory. Call it $6,000/month.
  2. Add your desired take-home pay. Let's say $5,000/month.
  3. Total needed: $11,000/month.
  4. Divide by your realistic billable hours. Not hours worked — hours you can actually bill a customer for.

Here's the reality most new techs miss: you don't bill 8 hours a day. You bill 4-5. The rest is drive time between calls, parts runs, lunch, phone calls, invoicing, scheduling. If you're working 20 days a month, that's about 80-100 billable hours.

$11,000 ÷ 80 hours = $137.50/hour minimum. That's your floor, not your target.

Per-Machine Pricing

This is where most CRMs fail appliance repair and where most techs leave money on the table. One flat rate doesn't work for our trade.

A dryer belt replacement takes 20 minutes. A Samsung sealed system repair takes 3 hours. A commercial ice machine diagnostic requires specialized knowledge most techs don't have. These should not all cost the same.

Set different service call rates by machine type:

These numbers work in my market. Adjust for yours. The point is: your price book should know the difference between a residential dryer and a commercial ice machine. If your software doesn't support per-machine pricing, you're either doing it manually or leaving money behind. ApplianceOps has a per-machine price book built in because I needed it for my own shop.

Parts Markup

Standard markup: 30-50%. Higher on hard-to-find or specialty parts. This is standard across the trade and customers expect it.

Why the markup is fair:

Example: You buy a compressor start relay for $85. At 40% markup, you charge $119. That $34 margin covers your time sourcing it, the risk of it sitting in inventory, and the warranty you're providing. That's fair.

Don't apologize for parts markup. Every trade does it. Every business does it. You're providing a complete service, not running a parts counter.

Flat Rate vs. Time & Materials

There are two main pricing models, and most shops end up somewhere in between.

Flat rate: You quote a fixed price for the repair regardless of how long it takes. Customer knows the total upfront. You earn more if you're fast, but eat it if there are complications. Flat rate rewards experience.

Time and materials (T&M): You charge hourly labor plus parts at cost + markup. You're always covered for time, but the customer doesn't know the final total until you're done. Can create trust issues with new customers.

What most successful shops do: a hybrid. Flat service call fee (covers diagnosis and basic repair) plus T&M for the actual repair work. This gives the customer certainty on the front end and fair pricing for the actual work.

Warranty Work Pricing

Home warranty companies — AHS, First American, Choice — pay a flat rate per repair, typically $75-$150 depending on the company and the type of repair.

The margins are thinner. That's the tradeoff for steady volume. Warranty work fills your calendar and keeps your techs busy, especially when you're building the business.

My advice: track warranty work and cash work separately. Know your average ticket on each. If warranty work starts exceeding 50% of your total revenue, you're too dependent on it. Warranty companies can change terms, reduce rates, or drop you. Build your direct customer base alongside warranty volume.

Raising Your Prices

Review your pricing every 6-12 months. Parts costs go up. Gas goes up. Your experience and efficiency increase. Your prices should reflect that.

Most customers won't blink at a $10-$15 increase. The ones who do were probably price-shoppers anyway.

For property management contracts and repeat commercial accounts, give 30 days' notice. A simple email: "Starting [date], our service call rate for [machine type] is increasing from $X to $Y. This reflects increases in parts and operating costs." Professional, clear, done.

New customers always get the current rate. Only existing contracts need notice.