How Flat Rate Pricing Works (New Model) | Lula's Help Center

How Flat Rate Pricing Works (New Model)

Written by Josh
March 3, 2026

Flat Rate jobs now follow a standardized Service Fee + Service Option workflow.

Instead of hourly billing or NTEs, each job includes:

A Service Fee
- $50 for Handyman
One or more Service Options selected after diagnosis, each of which has a scope and payout defined.

Pricing is transparent, automated, and approved in real time.

1. The Service Fee

Every Flat Rate work order includes a Service Fee. For handyman work orders, that service fee is $50.

This covers:

Travel
Diagnosis
Job setup
Standard overhead

The Service Fee applies once per work order, regardless of how many service options are selected.

2. Diagnosis + Selecting Service Options

The claim, en-route, start, and stop functions all remain the same. The new part of the workflow is that you will diagnose and select services before starting the work.

After diagnosing the issue onsite:

Select the appropriate Service Option(s) in the app
Review the pre-set rate for each option
Submit. Approvals are automated (or turn into an NTE increase)

You can select multiple service options within the same work order if multiple issues are resolved during the visit.

Example Pricing Scenario

You arrive and diagnose two labor only issues:

Running toilet → Flapper replacement ($45)
- Add-ons: $15 Materials
Faulty outlet → Outlet replacement ($55)
- Add-ons: $9 Materials

Pricing Breakdown:

Service Fee: $50
Flapper Replacement: $45+15
Outlet Replacement: $55+9

Job Payout: $174

The best part? Lula job fees no longer apply to these flat rate jobs.

The system automatically calculates this total once you select the service options.

3. How Approvals Work

Once you submit the selected services:

If the total price is within the customer’s approval threshold → Approved instantly
If the total exceeds the approval threshold → It automatically converts into an NTE approval request

You’ll know immediately whether you’re cleared to proceed or if you need to submit it for manual approval.

No calls for NTE requests.
No back-and-forth messaging required in most cases.

4. Two Types of Service Options

Service Options fall into two categories:

A. Lula-Procured (Replacement-Based Work)

Some Service Options include materials purchased directly by Lula.

When selected:

Lula purchases materials at the nearest Home Depot (or approved vendor)
Pickup details are included in the work order
Pricing includes labor + materials
No reimbursement or markup submission required

Your role:

Diagnose
Select the correct replacement option
Pick up materials
Complete the repair
Close out

B. Labor-Only Service Options

Some repairs are labor-based with variable parts.

When selected:

The service option includes a fixed labor rate
You source the necessary parts
Add your parts cost in the workflow

The system:

Combines labor + parts
Runs automated approval logic
Approves instantly or generates an approval request

No separate invoicing needed.

5. No More NTEs

Flat Rate jobs no longer operate under NTE structures.

Instead:

Pricing is tied directly to selected service options
The total builds automatically
Approvals are automated
If approval isn’t available, the system generates a pricing request automatically

The system handles the workflow — not you.

6. Payment & Close-Out

Once approved and completed:

Close out the job as normal
Payment is issued based on:
- $50 Service Fee
- All selected Service Options
- Add-Ons/Materials
No hourly rate calculations
No post-job adjustments
No reconciliation
Zero fees (unless there's a no show or background check fee)

You know the total before starting the repair.

Why This Model Works for Pros

Clear, predictable earnings
Faster approvals
No NTE management
No pricing disputes
Multiple repairs = higher ticket per visit
Less admin work
Zero fees (unless there's a no show or background check fee)

Flat Rate is designed to make common repairs faster, more scalable, and easier to complete — for you and for Lula.