Why Every Service Contractor Needs to Understand Material Markup (Not Just Job Markup)
Some home service contractors love to mark up the entire job, and that’s fine until you realize you’re not really making money on your materials. For me, personally I love to know ow everything is divided in my margins... Because It covers all the costs that get overlooked: Warranty replacements that eat into profits Time to grab, stock, or return parts Fuel and vehicle wear from sourcing Credit card fees and supply chain risk When you don’t separate material markup, you lose visibility. If you’re inefficient in your labor or your jobs start dragging, you won’t know where the leak is. Understanding markup on material is one of the most vital fundamentals for any service provider. It’s what separates a day to day contractor from a profitable one. That’s why we built this quick resource for you: It breaks down: ✅ How to calculate markup by cost range ✅ What markup really covers (overhead, risk, and time) ✅ Why materials should always be treated as a profit center, not just a pass-through expense Download the worksheet, walk through it with your team, and start identifying where your leaks are. Let me know what you think.Why I Stopped Chasing Jobs and Started Building Systems
Early in my career I equated motion with progress. AKA: Rocking chair syndrome. If the phone rang, I was winning. If my schedule was full, I was successful. But all that movement was just noise. I was busy, not effective. The shift came when I started documenting everything! How calls were answered, how quotes were written and how materials were ordered. Once I built systems, my business stopped depending on how many hours I worked and started depending on how well I led. Systems create predictability. Predictability builds trust. Trust builds freedom. Stop being the technician who holds it all together with duct tape. Be the leader who builds a machine that runs smoothly, even when you step away. Have questions? Message me!Our Painting Service Contract!
I have a painting service contract for our customers. It has worked out well for the last year but we haven't signed up a lot of customers. I think we have 15 customers on service contracts right now. I really want to vamp this up but I am hoping to get insight from other businesses on best practices for service contracts. I'm also trying to figure out if I should just sell as many as I can and then hire a full time person to service those clients, or keep slowly adding them until I can hire someone full-time to do it. I have been hesitant to go after this super hard because I don't want to be in a position where I can't get to our service contract clients for too long.
Looking to collaborate with Junk removal, landscape or cleaning companies.
Hello Jobber world, I am a small Canadian owned and operated pest control company operating in Toronto, Ontario. I am putting this message out to try to get in touch with a small commercial cleaning, landscape and junk removal company to share some work. Also open to creative ideas also, pressure washing comapnies, HVAC, construction, lawn care...anything we can do as small business owners to share the work. My business model is a full service pest control company, and all three of these services are going to be offered to my customers due to the importance of each. I plan to do most of it myself at the beginning, but would like to have some other local Canadian owned small business owners to share work leads. I do not want to work with a large operation to outsource work because I am a huge believer in owner/operated businesses, hence why I (and likely yourself) started my own business I would love to hear from anyone reading this and you can email me anytime at pestfreecanada@gmail.comAnyone using an ESOP?
I have recently heard about ESOPs a couple times over the past few weeks. It has me thinking this fits my culture and might be a good fit for my business. If you are running an ESOP can you share details about it? Does it work for you? What are the benefits? Has it helped team culture and morale/buy-in?New, Used, or Lease? And WHEN?
As a small business owner it has been nothing short of challenging to build a business from nothing. I came from nothing and have built this thing from the ground up. I didn't have a lot of money. When I first started I couldn't afford company vehicles. I eventually bought used vehicles in the $20K-$30K range and financed them and that was fine until I unexpectedly slowed down and had to sell off my trucks just to survive. Once I rebuilt from the slow down I decided to buy used vans around $9K to $10K cash. Right now I have 6 vehicles. One of those vehicles needs major work done. And the others are all 100K miles or more and I feel like they are just ticking time bombs. I want the reliability of newer, or leased vehicles but the risk intimidates me after my struggles in 2022. Is there a formula for when you should go from paying cash for used, to financing newer/new, and to finally leasing? Is there a revenue metric, a number of vehicles in your fleet, or some other sign that going one route over the other is more advantageous or less risky? Thanks for taking the time to read this and share feedback!What is the biggest bottleneck for you as a blue collar trade owner?
Hey what's up if we've never met, my name is Jeff aka "The 360 Electrician" or @the360electrician on all social media. I coach over 1000 electrical contracting and blue collar businesses and have been a Jobber ambassador for well over 2 years now. I run 2 electrical contracting companies for the past 20 years. I'm located in California and Montana, so you better believe I have the experience to help anyone from 0 to 360. After talking to hundreds of you in my 8 week contractor playbook course, time and time again the topic of the "unknown" comes up. Most of you want to grow your business, you are booked solid, you know there is a shortage in the trades but the unknown of being the "boss" is what holding you back. I have 3 tips that may help you with this and I hope you will reach out if you have any questions or need a more comprehensive hiring system. Hire before you need to hire - Don't wait till it's too late. If you know you need help start looking NOW! Otherwise you hire out of desperation and trust me, that's a recipe for disaster. Make sure you aren't hiring to fill a spot, but rather to buy back your time. This is based on the best seller from Dan Martell "Buy Back Your Time". When you can step away from the tools, you change the game as far as your business goes. You can hire anyone qualified to cut the grass, or install an electrical panel, you can't just hire anyone to run your business and take care of the finances taxes etc. Freeing up your time is PRIORITY 1 so you can grow. Own the trains don't run the trains. Hire 24/7 always hire better, more qualified employees. Make sure you have a Win-Win / profit sharing system in place and you will keep employees longer and happier. Constantly losing good employees takes time to retrain and trust so don't lose good people, reward them to stay. Need more tips, check out what we offer at http://www.The360Electrician.com and you can always email me at mailto:jeff@the360electrician.comProgress Payments
I’ve been running into something with Jobber that I’m curious if other contractors are struggling with too. Jobber seems mainly designed around industries like pest control or lawn maintenance — companies that don’t usually run really high line item prices or multi-stage projects off a single quote. For trades like mine (electrical contracting), projects are often big and spread out — think full home rewires, panel changes with remodels, or multi-phase installs. On those kinds of jobs, you can’t realistically bill everything upfront. We need to take progress payments as the work moves along. Here’s what I’ve been forced to do: Create a quote for the full project and get the client to approve it. Save the quote, don’t schedule it. Start the job and then build separate invoices for progress payments. The problem is that this really messes with the books. Jobber ends up showing the full approved quote plus all the separate invoices and payments. That doubles the client value and makes reporting messy. It also makes it harder to show the client a clear record of what’s been billed versus what’s left. My idea for a fix: Add a “progress payment” option to quotes/jobs/invoices — basically the same way deposits work now. On a quote or job, we could set a deposit, and then later go back in and log progress payments against the total without closing the job. That way the system would track everything cleanly, clients could pay stage-by-stage, and we wouldn’t have to hack around the software to make it work. Also while I’m at it — one other small request: on desktop we can add text-only line items to quotes, which is amazing for breaking them into sections or adding explanations. On mobile, we can’t. It would be a huge time-saver if that feature was available in the app, too. So — is anyone else having this problem with progress payments in Jobber? Would this kind of solution help your business too? – TJ Maddock Odinson Electric, LLCWho Was Your First Hire?
I’ll never forget mine! My first hire was a foreman. I needed someone who could run the job while I focused on running and growing the business. That was the moment it stopped being just me and started becoming something bigger. Scary? Of course. Exciting? Absolutely. That first hire teaches you the hard stuff. How to train. How to lead. How to TRUST someone with your name and your clients. You don’t always get it right, but that’s how you grow. What I learned: Hire sooner than you think you’re ready Character beats skill every time Being a boss is a completely different trade than doing the work So let me ask you… who was your first hire, and what did they teach you?
