Pricing Daikin FIT to Maximize Company Profitability


In this workshop, we will evaluate the various pricing methods and strategies for pricing in contracting, reviewing all methods and strategies and specifically discussing how Daikin FIT can help maximize profitability.

The goal is for dealers’ pricing to be both cost-based and designed to properly produce acceptable gross profit dollars to recover overhead. We’ll focus on understanding the difference between gross profit dollars and gross margins, and how to target profitability by business segment, increasing cash flow to allow growth. We will review divisor, multiplier, markup, gross profit per crew day and hour, breakeven and dual overhead pricing methods. We will also discuss the idea of aligning a company brand to a market price, and acceptance of the price versus just cost and profit.

Topics Covered:

  • How pricing fits into a company brand and overall strategy
  • Defining a company cost structure, including a properly organized chart of accounts
  • Breaking down revenues, cost of goods sold, overhead, and how income statements work (GAAP)
  • Identifying breakeven, gross profit per day, and overhead per day concepts
  • Methods of pricing: divisor, markup, multiplier, gross profit per day, breakeven, dual overhead
  • Utilizing add-on replacement cookbook; setting standards and positioning
  • Gross profit per man day benchmarks in replacement and light commercial
  • Crew capacity – labor capacity and planning overhead per day
  • Flat rate implementation – setting a labor rate correctly based on price and market
  • Key performance indicators (KPIs) – benchmarks, and their use in pricing
  • Defining pricing in all segments
  • Service pricing labor rate and parts markups
  • RNC – single and dual overhead, cost-based, breakeven
  • Residential maintenance


Jeremy Chandler



Robin Faust




Gary Elekes

EGIA Contractor University Faculty Member and CEO of iMarket Solutions

Gary Elekes is a serial entrepreneur with a passion for helping others become more successful by sharing what he has learned over the past 3 decades working closely with all facets of the contracting industry. During his career, Gary has held senior management positions at Lennox and Service Experts. In 2000, Gary moved into entrepreneurship and started his training and consulting business EPC. Today, EPC continues to support growth oriented businesses aspiring to reach 20% EBIT. He also designed the very first web based learning platform for the residential contracting industry, which acts as a support system for training and learning in HVAC and plumbing trades, and has over 5,000 subscribers.

In 2003, Gary began acquiring contracting firms with a focus on developing turn-around opportunities. He also opened and operated several start-up businesses. In 2010, he added web design/SEO and online marketing to his company portfolio starting iMarket Solutions as a co-founder. Gary graduated from Ohio State University with a BSBA and also holds a Master's Degree in Business and Finance.