How do you go about pricing your services for profit?
Communicating cost increases to your clients aren't the easiest yet it has to be done as a business continues to grow. Thoughts?
Forum Discussion
Every field’s a little different, but for us it’s all about knowing our real numbers. We price from the ground up: materials, labor, equipment, overhead, and a little buffer for unknowns. Labor is usually the biggest swing, so if you miss that, you lose money quick. Once we know our true cost, we stick to a margin that keeps the business healthy. If it doesn’t make sense, we pass.
On price increases, we just keep it real. Costs go up (materials, fuel, labor) and we explain it simply. No fluff. Most good clients get it, especially when you show up, communicate well, and do solid work.