How Much Should You Really Be Charging?
The number one question I receive is tied directly to the fact, most contractors are still guessing when it comes to pricing. Overhead. Profit. Labor rate. Trip fees. They think just because they throw a number they hear their competitors use, thats all that they need. It may work, but how and what do you divide these funds is just as important for your business health. If you don’t know how to do the math, you’re not building a business. You’re surviving check to check and think you need more work, when you do not. So here’s the plan: This Tuesday & Thursday on IG, I’m walking you through our Contractor Price Builder Worksheet FREE on instagram live. We will cover: - How to calculate your real hourly rate - The difference between markup and margin - Why profit is a non-negotiable - And how to price with confidence Join the session. Bring your numbers.How do I record payment when a customer has already given me a deposit?
I am charging a customer $120/month for exterior rodent control and they paid me in full for the year. I applied that payment to the account but when I try to record each months service off of the credit, I can't seem to be able to. Jobber is telling me that the invoice must exceed $0.50. The balance is showing on the account but I can't figure out how to make the monthly charge come off of the balance. HELP!When should businesses increase prices to keep up with rising payroll costs?
When's the last time you updated your pricing model to match your payroll reality? For example, our direct payroll (before tax) is 38% while our indirect payroll is 10%. As of January 2, we increased rates for all recurring clients by 4% to offload the indirect percentage. Going forward, we increased all first-time services by 5%. Thoughts?What do I need to know/have prepared in order to get better business loans?
Have been using Jobber Capital for years to help grow my business. However, it is expensive and really sucks for cash flow purposes. At least in my experience. Is there a better way to do that, or should I be trying to get financing somewhere else that is cheaper? If you recommend the Jobber Capital/ Stripe Loan, then how much have you taken? I have been approved for a little over $100K but I haven't wanted to take that risk. Let me know what you have done and options I may not be thinking of. Thanks!How do service business owners adjust from a steady paycheck to getting paid per job?
I was talking with a friend yesterday about how my business is going. I mentioned to him how it is new to me not getting a paycheque anymore, but just receiving payments after each service. It is taking me a little bit of time to get used to that. Very different way of budgeting and balancing my chequebook. Has anyone else had this mental challenge when starting out on their own?How to price a job that is outside your normal working area?
I have made myself a set price list for work within the 35KM where I like to work, but often get calls outside that area. I have been going and doing the work at the same price I quote for calls within my area and wonder if that is hurting me? The idea was to have people discuss what price I gave them with family and friends in different locations and recommend me, but at what point does that price become unprofitable? Should I raise all my prices so customers feel I am not adding a travel surcharge? Should I be upfront and let them know my location and if they want me to come, I will have to add a travel charge? Should I refuse work outside my area? Refuse is such a bad word right!
