How to Price Fire Protection Services: A Contractor's Guide to Profitable Pricing
Most fire protection contractors set their prices one of two ways: they copy what competitors charge, or they pick a number that "feels right." Both approaches leave money on the table—or worse, lead to jobs that lose money.
This guide breaks down how to calculate your true costs, choose the right pricing model for each service, and set rates that keep your business profitable while staying competitive.
Why Most Fire Protection Companies Underprice
Before diving into the numbers, let's address why pricing is so hard in this industry.
Fire protection services are required by law. Every commercial building needs annual inspections. This creates steady demand—but it also creates a race to the bottom. When customers see inspections as a commodity ("just need someone to tag my extinguishers"), they shop on price alone.
The contractors who thrive are the ones who:
- Know their true costs down to the penny
- Price for profit, not just revenue
- Communicate value beyond "we'll keep you compliant"
Let's start with the foundation: understanding what it actually costs you to send a technician to a job.
Step 1: Calculate Your True Costs
Every job has three cost components:
Direct Labor Cost
This isn't just your technician's hourly wage. It's their fully-loaded cost:
Rule of thumb: Your fully-loaded labor cost is typically 1.3x to 1.5x the base wage.
If you're paying a technician $25/hour, they're actually costing you $32-38/hour when you account for everything.
Vehicle & Travel Costs
The IRS mileage rate for 2026 is $0.725/mile, but your actual costs may differ. Calculate yours:
Don't forget travel time. If your technician spends 90 minutes driving to and between jobs each day, that's $52 in labor cost before they inspect a single extinguisher.
Overhead Allocation
Your overhead includes everything that keeps the business running but isn't tied to a specific job:
- Office rent and utilities
- Administrative staff
- Software and technology
- Insurance (general liability, E&O)
- Marketing and advertising
- Professional services (accounting, legal)
- Training and certifications
- Uniforms and safety equipment
How to allocate overhead to jobs:
- Calculate your total monthly overhead
- Divide by the number of billable hours your team produces monthly
Example:
- Monthly overhead: $15,000
- Technicians: 3
- Billable hours per tech per month: 120
- Total billable hours: 360
- Overhead per billable hour: $41.67
This means every hour your technician is on a job needs to cover $41.67 in overhead—on top of their labor cost and materials.
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Putting It Together: Your Hourly Cost
If you're charging $75/hour, you're losing $10 for every hour worked.
Step 2: Choose Your Pricing Model
Fire protection services can be priced several ways. Each has pros and cons.
Per-Device Pricing
Best for: Fire extinguisher inspections, sprinkler head counts, smoke detector inspections
Customers understand per-device pricing. It's transparent and easy to quote.
Typical ranges (2026):
Warning: Per-device pricing can hurt you on small jobs. Inspecting 5 extinguishers at $15 each ($75) doesn't cover your costs if it takes 90 minutes including travel.
Solution: Set a minimum service charge ($150-250) that applies when per-device totals fall below your threshold.
Flat-Rate / Per-Visit Pricing
Best for: Small to mid-size buildings with predictable scope
Flat-rate pricing shifts risk to you—if the job takes longer than expected, your margin shrinks. But it also simplifies quoting and eliminates customer surprises.
How to set flat rates:
- Estimate total time (travel + inspection + documentation)
- Multiply by your hourly cost
- Add materials
- Add your target profit margin (20-35%)
Example: Small office building
- Travel time: 45 minutes
- Inspection time: 90 minutes
- Documentation: 15 minutes
- Total time: 2.5 hours × $85/hour = $212.50
- Materials/supplies: $25
- Subtotal: $237.50
- Profit margin (25%): $59.38
- Quote: $297 (round to $295 or $300)
Hourly + Materials
Best for: Service calls, repairs, complex or unpredictable work
Hourly pricing protects you on jobs with unknown scope. But customers often resist open-ended billing.
Typical hourly rates (2026):
Pro tip: Quote a "not-to-exceed" estimate for service calls. Customers get cost certainty; you get flexibility if the job goes sideways.
Contract / Recurring Pricing
Best for: Ongoing inspection and maintenance agreements
Contract pricing builds predictable revenue and locks in customers. Price contracts at a slight discount (5-15%) compared to one-off work—you're trading margin for volume and retention.
How to price annual contracts:
- List all required inspections and frequencies
- Calculate per-visit pricing for each
- Total the annual value
- Apply contract discount (5-15%)
- Offer monthly or quarterly payment options
Example: Restaurant with hood suppression system
Step 3: Price by Service Type
Here's a breakdown of typical pricing for common fire protection services. Use these as benchmarks—your costs and market may differ.
Fire Extinguisher Services
Minimum service charge: $125 - $200 (covers travel and basic overhead)
Fire Sprinkler Inspections (NFPA 25)
Fire Alarm Inspections (NFPA 72)
Kitchen Hood / Suppression Systems (NFPA 96 / NFPA 17A)
Step 4: Adjust for Your Market
Pricing varies significantly by geography. A fire extinguisher inspection that goes for $12 in rural Texas might be $22 in San Francisco.
Factors That Justify Higher Prices
- Higher cost of living: Your labor and overhead costs more
- Less competition: Fewer contractors means less price pressure
- Specialized services: Complex systems, high-rise, healthcare, etc.
- Faster response times: Premium for same-day or emergency service
- Better documentation: Digital reports, photos, compliance tracking
Factors That Push Prices Down
- High competition: Many contractors fighting for the same work
- Commodity perception: Customers see inspections as interchangeable
- Large volume accounts: Property management companies expect discounts
- Seasonal slowdowns: Pricing pressure during slow months
How to Research Local Rates
- Call competitors for quotes. Use a real building you have access to. Get 3-5 quotes.
- Ask customers what they've paid before. When bidding new work, ask about their previous provider's pricing.
- Check government bid tabulations. Public entities publish winning bids—search "[your city] fire extinguisher inspection bid" or check municipal purchasing portals.
- Talk to industry peers. Trade association meetings, online forums, or contractors in non-competing areas.
Step 5: Handle Common Pricing Scenarios
"Your price is higher than the other guy"
Don't compete on price alone. Compete on:
- Response time: "We'll be there within 48 hours, not 2 weeks"
- Documentation: "You'll get a detailed digital report with photos"
- Reliability: "Same technician every visit who knows your building"
- Compliance support: "We'll handle the paperwork for your AHJ"
If you're $50 higher on a $500 job, that's 10%. Most customers will pay 10% more for better service—if you explain the value.
"We need a discount for multiple locations"
Volume discounts make sense when:
- Travel efficiency improves (locations are clustered)
- Admin burden decreases (one invoice, one contact)
- You're locking in recurring revenue
Reasonable multi-location discounts: 5-15% off standard rates
Don't discount just to win the work. A $5,000 contract at breakeven is worse than a $4,000 contract with 20% margin.
"Why are you charging $150 for a 20-minute drive?"
Customers sometimes balk at service call fees because they only see the technician's drive time. Here's what that fee actually covers:
Vehicle costs:
- Fuel (obvious, but often underestimated)
- Insurance on a commercial vehicle ($200-400/month)
- Maintenance, tires, oil changes
- Depreciation—that van loses value every mile
- Registration, inspections, permits
Technician time beyond the drive:
- Loading the van with the right equipment before leaving
- Travel time (they're on the clock the whole time)
- Paperwork and documentation after the visit
- Time between jobs that can't always be filled
Back office costs:
- The person who answered your call (15-20 minutes for intake)
- Scheduling and dispatch coordination
- Creating the work order in our system
- Invoicing and payment processing after the job
- Customer service if you have questions later
Readiness costs:
- Keeping certified technicians on staff and trained
- Maintaining inventory so we have parts when you need them
- Carrying insurance so you're protected if something goes wrong
- Investing in tools and equipment that let us do the job right
How to explain it to customers:
"The service call fee covers everything it takes to get a trained, equipped technician to your door ready to work—the vehicle, fuel, insurance, scheduling, and the staff that coordinates it all. The labor you see on-site is just one piece of delivering reliable service."
Or more simply:
"That fee covers the truck, the tools, the insurance, and the team that gets everything scheduled and invoiced. Without it, we'd have to charge higher hourly rates on every job."
Most customers understand once you break it down. The ones who don't are often price-shopping for the cheapest option—and that's rarely a customer who values your service long-term.
"Can you match this quote?"
Ask to see the quote. Often, competitors leave out services or have hidden fees (trip charges, report fees, etc.).
If the quote is genuinely lower and apples-to-apples:
- Don't match it automatically
- Explain what differentiates you
- Offer a small concession if needed to close ("I can't match that, but I can do X")
Sometimes, let them go. Customers who choose solely on price will leave you for the next low bidder anyway.
"We'll pay you when we get paid"
Net-30 is standard. Net-60+ should come with a premium (2-5%) or require a deposit.
For new customers or large jobs, consider:
- 50% deposit before work begins
- Progress billing on multi-day projects
- Credit check for accounts over $X
Step 6: Know When to Raise Prices
Annual Increases
At minimum, raise prices annually to keep pace with inflation (3-5%). Communicate increases 30-60 days before they take effect.
How to communicate:
"Effective [date], our service rates will increase by [X]% to reflect rising costs for labor, materials, and insurance. We remain committed to providing you with reliable service and compliance support. Thank you for your continued business."
Most customers expect annual increases. The ones who push back hard are often low-margin accounts anyway.
When to Raise More Aggressively
- You're booking out 3+ weeks. Demand exceeds capacity—price is too low.
- Close rate is above 80%. You're not losing enough bids, which means you're underpriced.
- Costs jumped. Insurance, fuel, wages—pass increases to customers.
- You added value. New certifications, better equipment, digital reporting.
When to Hold Prices
- Market is soft. Recession, slow season, new competitor undercutting.
- Key account at risk. Sometimes it's worth holding price to retain a strategic customer.
- You're building the relationship. First-year pricing for a customer you want long-term.
Common Pricing Mistakes to Avoid
1. Forgetting Travel Time
A job that takes 1 hour of inspection but 2 hours of driving is a 3-hour job. Price accordingly.
2. Underpricing Small Jobs
Five extinguisher inspections at $12 each is $60. If it takes 90 minutes including travel, you lost money. Set minimums.
3. Not Charging for Extras
Documentation copies, compliance letters, re-inspection after corrections—these take time. Include them in your base price or charge separately.
4. Pricing for Revenue Instead of Profit
A $10,000/month account sounds great until you realize it's eating 80% of your capacity at 5% margin. Price for profit, not just top-line revenue.
5. Being Afraid to Lose
You won't win every job. If you're winning 90%+ of bids, you're leaving money on the table. A healthy close rate is 40-60%.
Pricing Worksheet
Use this framework for any service:
Example:
- Labor: 2 hours × $35 = $70
- Travel: 30 miles × $0.55 + 1 hour × $35 = $51.50
- Materials: $25
- Overhead: 2 hours × $42 = $84
- Subtotal: $230.50
- Target margin (25%): $57.63
- Quote: $288 → round to $285 or $295
Key Takeaways
- Know your true costs. Fully-loaded labor, vehicle, and overhead—not just the wage you pay.
- Set minimums. Small jobs need minimum charges to cover fixed costs.
- Choose the right pricing model. Per-device, flat-rate, hourly, or contract—each fits different situations.
- Price for profit, not revenue. A busy calendar at low margins isn't a business—it's a job.
- Raise prices regularly. Annual increases are expected. Don't let costs outpace revenue.
- Compete on value, not price. Reliability, documentation, and service quality justify premium pricing.
Next Steps
Pricing is just one piece of running a profitable fire protection business. To stay on top of your numbers:
- Track your actual time on jobs vs. estimates
- Monitor your profit margin by service type
- Review your pricing quarterly against costs and market rates
The other half is keeping your costs low enough to stay competitive. Essential helps fire protection businesses automate the back-office work that eats into margins: scheduling, route optimization, customer reminders, invoicing, and compliance tracking. Less overhead means you can price competitively and protect your profit.
