Dynamic Pricing Overview

Overview

Dynamic Pricing is a flexible pricing system that adjusts flat-rate service prices based on multiple factors, such as after-hours work, add-ons, memberships, and more. Instead of relying on fixed prices, it dynamically calculates costs using service time, materials, equipment, and predefined pricing rules.

This approach helps maximize margins, ensure pricing accuracy, and improve transparency across all trades and service scenarios.

Things to know

• Dynamic Pricing only works with materials linked to services. The pricing rules apply to the overall service, not to each material separately. If a material isn’t tied to a service as a sub-item, Dynamic Pricing won’t apply.

• Dynamic Pricing does not use the Price, Member Price, or Add-On Price fields in your pricebook. It relies on pricing rules and actual costs.

• After-hours pricing is only reflected on invoices, not estimates, since it’s not guaranteed that a job will occur after-hours.

• Add-on pricing must be set through rule modifiers, not standard pricebook fields.

• Dynamic Pricing can treat materials and equipment added to a job as sub-items, the same way it treats items linked in the pricebook. To enable this, go to Pricebook > Pricing Builder > Dynamic Pricing > Settings.
  

Benefits of using Dynamic Pricing

• Optimizes profit margins by factoring in actual job costs and service conditions.

• Automatically applies pricing rules without manual adjustments.

• Simplifies complex pricing for scenarios like after-hours work, memberships, or custom surcharges.

• Ensures accurate estimates and invoices by using real-time data from your pricebook.

• Reduces errors and inconsistencies by standardizing pricing logic across your business.

How Dynamic Pricing works

Dynamic Pricing applies only to services, not individual materials. It automatically includes the cost of linked materials and equipment when setting the service price.

The general calculation of dynamic pricing is:

(Billable Hours × Labor Rate) + (Material Cost × Markup) + (Equipment Cost × Markup) + Surcharges

Dynamic Pricing replaces the static prices in your pricebook with real-time calculations based on the following components:

• Labor Costs:

  • Uses Billable Hours (sold hours) from each service

  • Multiplies by the Billable Rate set in your pricing rule

• Material Costs:

  • Based on the materials attached to each service

  • Applies your selected material markup (flat, percentage, or gross margin-based)

• Equipment Costs:

  • Based on installed equipment tied to a service

  • Applies your selected equipment markup

• Surcharges & Modifiers

  • Additional rules for after-hours, price levels, or custom factors

  • Can be flat fees or percentages

• Membership Discounts

  • Applied after dynamic pricing is calculated

  • Pulled from the settings in each membership type

What you need to get started

Before using Dynamic Pricing, make sure your pricebook is fully configured and employees have the correct permissions.

Enable Required Permission

You can set the permissions by assigned company role or an individual office employee:

1. Go to the top toolbar and click Settings .

2. In the side panel, go to People > Employees.

3. Under Employees, click Edit for the employee whose permissions you want to set.

4. Click Permissions.

5. Scroll down to the Pricebook section and enable the View Pricing Rates and Create/Edit Pricing Rates permissions.
   

For accurate pricing, make sure the services in your pricebook that you want to use Dynamic Pricing with are complete and up-to-date.

Update Your Pricebook

• Add sold (billable) hours to all your services. 

• Attach materials to services in your pricebook and ensure their costs are accurate. These costs, combined with pricing rule markups, determine the material portion of the service price.

• For services that include equipment installation, attach equipment items with accurate standard costs. These are used with markups to calculate the equipment portion of the service price.

• Set member discounts for your membership types by business unit or pricebook category. These discounts are applied to the dynamically set prices of services added to an estimate or invoice.

Note: Dynamic Pricing does not use the Price, Member Price, or Add-On Price fields in your pricebook. It relies on pricing rules and actual costs.

Set up Dynamic Pricing rules

Set Up Pricing Rules

Create pricing rules that define how service prices are calculated. These rules should include:

• Billable Rates: Labor costs based on technician hours

• Material Markups: Flat or percentage-based markups applied to material costs

• Equipment Markups: Similar markups applied to equipment costs

• Surcharges: Charges for specific scenarios, such as after-hours work or add-on services

• Special Conditions: Any scenario-specific pricing adjustments

Add Modifiers

Enhance pricing rules with modifiers to reflect real-world job conditions:

• Add-on: Apply discounts when services are bundled.

• After Hours: Use separate rates for work outside regular hours.

• Price Level: Add fixed or percentage adjustments for extra-effort jobs.

• Rounding: Round prices to the nearest dollar, ten, or hundred for cleaner presentation.

Calculate prices from ServiceTitan Mobile

Dynamic pricing applies to items by default in ServiceTitan Mobile. For example, if an item is added after hours or if the item is an add-on.

1. Select an item or search for the item you want to add.

2. On the invoice, tap the item to open Edit details.

3. Select the quantity.

4. Select Add-on item, if it is.

5. Select a Price Level.

6. When finished, tap Save. Check to be sure dynamic pricing was applied.
   

Want to learn more?

• Visit ServiceTitan Academy and enroll in Dynamic Pricing Overview