Diagnostic Fee
Definition
A diagnostic fee is a flat charge a service company bills to come onsite, inspect the problem, and provide a repair quote.
What Diagnostic Fee Means for Your Business
What it means
The diagnostic fee is the price of showing up. It covers the tech's drive time, inspection labor, and the written quote. Whether the customer accepts the repair or not, the fee is due.
Why it matters
Diagnostic fees stop tire-kickers, pay for trucks, and preserve tech productivity. Shops that go out for free get crushed by windshield time. Shops that charge fairly keep their economics healthy.
How contractors use it
Typical fees range from $59 to $149 depending on trade and market. Many shops waive it if the customer approves the repair. The fee is disclosed up front when the call is booked to avoid disputes.
Real-World Example
A plumbing company charges an $89 diagnostic fee and runs 4,200 service calls per year. That generates $374,000 in guaranteed trip revenue, which covers the entire CSR team and dispatch overhead.
Related Terms
Service Call
A service call is a single customer request for a technician to come onsite, diagnose an issue, and perform repair or maintenance work.
Emergency Service
Emergency service is urgent repair work that cannot wait for normal scheduling, typically involving health, safety, or property damage risks.
Close Rate
Close rate is the percentage of presented estimates that result in a booked job or signed contract.
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.
Average Ticket
Average ticket is the mean revenue generated per service call, calculated by dividing total invoiced revenue by the number of completed jobs.
Put This Into Practice with Free Software
Kaldr Tech handles diagnostic fee and everything else you need to run your shop. $0/month, 3.5% + 30¢ per transaction.