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
This is one I would love more feed back about. I just went from a 3 person team, me and an installer, to a 5 person team. Now I have a person answering the phone, making the schedule and doing gofer tasks for me as well as an install team that can work without my labor contribution. Now that I am off the tools and the phone I have time to sell way more than I ever have before. However, my payroll cost is way up and my profit has disappeared. I raised my prices today but worried how to tell my long term clients.
3 people; Installer, pt bookkeeper, myself.
Remember that as your payroll went up, your value went up too. Your company is now more responsive ever with a dedicated office staff. More techs on the road means less scheduling glitches when one calls out. more trucks on the road means less hiccups should one break down. You may still offer the same service, but now you do so in a more responsive, reliable, and quicker way. if i was you client, i would pay more for that...
I utilize a budget to make sure we are properly recovering costs and passing them on to our clients.
Smart approach. A solid budget can really help with staying on top of costs for sure. How do you typically communicate those price adjustments to clients?
Always explain reasons why and include your team as part of the driving force as usually they are!
price transparency 🤌 i love that. Not only does it foster understanding across your whole team but can potentially empower them, improve accountability, and increase satisfaction. 🙌
