Clockwork Protocol Pricing
Definition
Clockwork Protocol pricing is a disciplined approach to building field service rates from burdened labor cost, overhead allocation, and target gross margin instead of copying competitors.
What Clockwork Protocol Pricing Means for Your Business
What it means
Clockwork Protocol pricing starts from the math. It takes the burdened labor rate, adds allocated overhead, applies a target gross margin, and lands on a rate that actually pays for the business.
Why it matters
Most shops price by looking at what the guy down the street charges. That guarantees you inherit his mistakes. Protocol pricing grounds every number in your own cost structure and profit goal, which is the only way to scale sustainably.
How contractors use it
The owner or controller walks the full calculation once a year, updates the price book, and retrains the sales and dispatch team on the new numbers. Every task in the price book ties back to the underlying math.
Real-World Example
A plumbing company ran a full Clockwork Protocol pricing review and discovered 68 tasks priced below true cost. Repricing lifted average ticket 14% and added $520,000 in annual gross margin with zero new marketing spend.
Related Terms
Burdened Labor Rate
Burdened labor rate is a technician's true hourly cost after adding payroll taxes, benefits, and other employment overhead on top of base wages.
Overhead Allocation
Overhead allocation is the accounting method of spreading indirect costs like rent, insurance, and office salaries across jobs or departments so true profitability can be measured.
Gross Margin
Gross margin is revenue minus the direct cost of labor and materials, expressed as a percentage of revenue.
Price Book
A price book is a standardized catalog of labor and material tasks with pre-set flat rate prices that technicians use in the field.
Flat Rate Pricing
Flat rate pricing charges a fixed amount for a specific task, regardless of how long the technician actually takes to complete it.
Put This Into Practice with Free Software
Clockwork handles clockwork protocol pricing and everything else you need to run your shop. $0/month, 3.5% + 30¢ per transaction.