Overview
Set billable rates, apply markups, and configure advanced settings to create a dynamic pricing rule that keeps your pricebook updated automatically.
Who uses this feature
Administrators and managers
Primarily for Residential Service and Residential Construction
Create a rule
To create a dynamic pricing rule:
Go to the navigation bar and click Pricebook
.In the side panel, go to Pricing Builder.
On the Dynamic Pricing screen that opens, click Create Rule.
Note: Depending on your account configuration, you might also see the Client Specific Pricing tab when navigating to the Pricing Builder. Proceed by selecting the Dynamic Pricing tab and choosing Dynamic Pricing when creating a rule.
There are five steps to complete your dynamic pricing setup. Follow the steps below to get started.
Step 1. Categories
Select the categories you want to apply your pricing rule to. The rule applies to all items within the selected categories and subcategories.
When finished, click Continue to set billable rates.
Step 2. Billable Rate
Set the hourly rate for services covered by the pricing rule. This rate is multiplied by the billable hours to calculate the labor price.
You can set a static rate or use progressive rates to create a sliding scale. To set billable rates, under Billable Rate, either:
Enter a static hourly rate. For example, charge $150 per hour for all hours.
Click Use progressive rates. For example, charge $150 per hour for the first 2 hours, then $130 per hour for each additional hour.
Enter the starting range ($0 by default for the first row).
Set the upper limit of hours.
Enter the billable rate for that range.
Click + to add another range.
Tip: For the final range, enter 999 as the upper limit to cover all additional billable hours.
When you're finished, click Continue to set material and equipment markups.
Step 3. Markup
Set markup for materials and equipment in a service based on a pricing rule:
Price markup options:
Individual: This marks up each item separately.
Aggregate: This adds up all costs first, then applies the markup.
Markup types
Gross margin: Sets your profit based on the final selling price.
For example: With a 30% profit margin and a $100 cost, the item is priced at $142.86 - 30% of the final price is profit.
% Markup: Adds a percentage to the item's cost.
$ Markup: Adds a fixed dollar amount to the cost.
Multiplier: Multiplies the item’s cost.
For example, 2× $100 = $200.
Set markup ranges
Enter the starting range. The default starting value is $0 for the first row.
Enter the highest cost for that material range.
Set the markup for that range.
Click + to add more ranges.
Tip: For the last range, set the upper limit to $99,999 to cover all remaining material costs.
Equipment Markups
Turn on Use same rules as Material to apply the same markup.
Or follow the same steps above to set different markup rules for equipment.
Select the Configurable Services Price Rule
Generic Cost: Uses a fixed cost for materials, keeping the service price the same, no matter which material is used. This option is the best for consistent pricing.
Exact Cost Variation: Adjusts the service price based on the actual cost of the selected material, keeping the profit margin the same. This option is the best for accurate cost-based pricing.
When finished, click Continue to set surcharges.
Step 4. Surcharge (Optional)
You can add a flat or percentage surcharge to a service item. The surcharge is included in the service price but not shown to the customer.
Example: Add a 3% surcharge to cover small extra costs like protective equipment or disposable materials ( gloves, shoe covers), or a $50 flat surcharge to cover fuel expenses.
To add a surcharge:
Click $ to add a flat surcharge or % to add a percentage surcharge.
Enter the amount or percentage.
If you do not want to add a surcharge, click Continue to move to the next step.
Step 5. Business Units
Set different prices for each business unit to reflect local market conditions and job types. Adjustments made here will override your default billable rate.
To set up a business unit:
Click Add New Business Unit Rule.
In the Business Units screen that opens:
Enter the rule name.
Select the business unit from the dropdown.
For each business unit, adjust as needed:
Billable Rate: Enable and set billable rates if needed.
Markup: Enable and set markups if needed.
Surcharge: Enable and set surcharges if needed.
Click
to add more Business Unit Rules.
When finished, click Continue to review your pricing rule.
Step 6. Review & Add Modifiers
Review your rule and make any adjustments if needed.
Hover over any section and click Edit to edit that part of the setup.
Add modifiers to adjust pricing based on specific conditions.
When finished, click Continue.
Enter a Name for the rule.
(Optional) Add a description.
When finished, click Finish.
Preview the rule
After setting up the rule and adding all necessary modifiers, preview it to see how pricing applies to the service. To test the rule:
Click Preview.
Use the Service dropdown to choose a service to test.
Test your dynamic pricing:
Select if this is an add-on service
Test your different price levels
Use the time dropdown to adjust the job start time
When finished, click Close.
Want to learn more?
Visit ServiceTitan Academy and enroll in Dynamic Pricing Overview