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
Everything starts with building a budget! This budget is going to show you what margin you need to make to complete your budget goals at the end of the year. So if your budget is telling you that you need a 50% gross margin then now when you quote you know you need to at the very least add up your costs and double them. I would say if your budget says 50% then you are quoting around 60% gross margin. This give you a profit buffer for some bad jobs and things like team days and just general slippage. Get that gross margin as high as you can and you will be a very happy business owner.
I'd love to chat with you sometime. I just joined the community and I'm an electrician in the Denver area. I have found it difficult to build a budget in my type of service based electrical work.
Absolutely, my email address is cory@vancityelectric.ca reach out and we can hop on zoom. Cheers.
