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
After 38 years in renovation planning, interior design, and project management, I have learned that profitable pricing has to include much more than the visible hours spent with a client.
In renovation work, clients are paying for experience, planning, risk reduction, contractor coordination, site management, problem solving, and the ability to prevent costly mistakes before they happen. I manage projects on site with the trades full time, so pricing also has to reflect the responsibility of keeping the work aligned with the approved specifications, schedule, budget, and homeowner expectations.
For my business, profitable pricing starts with a very clear scope of work. I separate planning, specifications, contractor coordination, and project management so the client understands the value of each part. When the scope is clear, the pricing is easier to explain and the project usually runs much more smoothly for everyone involved.