Why We Stopped Treating Every Estimate the Same
Early on, I treated almost every estimate like it deserved the same amount of time and attention. Eventually I realized that makes no sense. A straightforward residential lead who already knows what they want is very different from a commercial property manager asking for multiple service options, a walkthrough, custom scope, and internal approval. So we started matching the sales process to the opportunity. Some prospects need a fast price and an easy way to move forward. Others justify more discovery, more questions, and more time because the potential value of the account is much higher. That also helped me stop over-serving low-intent leads before they ever became customers. I still want every prospect to have a good experience, but I don’t think every estimate needs the exact same process. How much do you adjust your quoting process based on the size or complexity of the opportunity?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?
💡FEATURE REQUEST: Price Increases in Products & Services List
Do you increase prices for ongoing customers? Do you know how long it takes me to increase my prices for 700 ongoing clients in my cleaning business? Whether you increase your prices on an annual basis or just as needed in these unpredictable times, it would be easier to make these changes en masse in the Products and Services tab! How would it work? When editing a product or service line item in the Products & Services List, there should be an option to carry that modification over to any existing Jobs that have that line item on it. Currently, this would only update for new jobs created, but I'd love to see a little pop-up that says, "Would you like to change the price for existing Jobs with this line item? Yes/No" Use Case Example: Because I am in the cleaning industry, it will be my primary use case. Let's say you have a minimum price that every client's rate will be at or above. When you create a new job for a recurring customer, you add a line item titled "Minimum Rate + current year," like for 2020: "Minimum Rate 2020," which is $150. You also add another line item based on how your pricing model is set up - in this case, I will use a simple one: "Small House" for $10 "Medium House" for $30 "Large House" for $50 When it's time for your prices to increase, consider the following options: you could decide to raise prices only for people with large houses and keep your minimum rate the same, or you may want to increase the cost for clients who have been with you for more than 5 years. Instead of making this change one client at a time and trying to sort through who the change applies to, I could go to the Products and Services List and find the specific line item I want to modify. Then, I could edit the price in there! Ta Da! You've raised your prices! Why should Jobber care? This would be huge for any business industry that has recurring clients. ServiceTitan, Housecall Pro, and other competitors already have this feature. I have found other threads that mention something like this or frustrations with how to go about raising prices. This would allow businesses that only see customers once or twice a year to set up their customers as recurring with one Job, saving them a lot of time and effort as well. You'd have at least one very loyal customer in me! I've spoken to two support agents who thought this was a simple but fantastic idea! My next price increase is in June, and I'd love you guys if you saved me weeks worth of work in a single click 🤞🙏 QUESTIONS, COMMENTS, FEEDBACK, AND MORE USE CASES WELCOME!!What are the extra things you do to sell a job that you don't charge for?
I had a client recently share with me that between me and another remodeler, I was the one willing to do the most without asking for anything in return before he booked the job, so that's why he went with me. I went and took measurements, got him a rendering of his new kitchen and a layout from the cabinet shop, met with him 2 other times, met them at the cabinet store. Really spent a lot of time developing report before I got the sale. I don't know how sustainable that is however my motto is just be as helpful as possible and the rest will come. What are the "extra's" you guys do to get that sale or create value with your customers?“Your prices are probably too low.” 💸
Winning almost every job you quote? Gabe Chrismon (Oply) says that could be a sign you’re charging too little. More jobs can keep you busy, but the extra driving, paperwork, and labor can eat into what you actually take home. 💬 Comment below: Have you ever realized you were charging too little? How did you know, and did you raise your prices? In this Masters of Home Service episode, Gabe shares the hidden costs of taking on more jobs, how to test higher prices with new customers, and ways to explain an increase to longtime customers. Never miss an episode of Masters of Home Service. Subscribe on Apple, Spotify, or wherever you get your podcasts.
The Hidden Cost of Letting Customers Pause Service
Pausing service sounds customer-friendly. Sometimes it is. But recurring businesses can get hurt by too much flexibility. When someone pauses, the route loses density, monthly revenue drops, and that open spot may sit empty for weeks. Then when the customer wants to come back, the schedule may no longer have room in that area or on that day. We’ve also seen customers pause for budget reasons, travel, or seasonality and never fully return. That’s why I’d rather try a lower-frequency option first when it makes sense. A temporary downsell can keep the relationship alive without creating a full cancellation. I think the key is having a clear pause policy instead of handling every request differently. How do other recurring service businesses handle pauses? Do you allow them freely, limit them, or push customers toward a lower-frequency plan instead?8 Year-End Financial Myths Costing Your Business Money
Attn: Jobber Community It's about that time to be thinking about year-end...and many home service business owners make the wrong move (or no move at all). Join me on October 22nd at 11am ET where I am collaborating with Jobber to discuss 8 Year-End Financial Myths that could be costing your business. Sign up today (link below). PS If you register and attend live, there's a chance to win a $50 gift card. See you there! https://www.getjobber.com/events/year-end-financial-tips/How to Win the Job When You’re Not the Cheapest Bid
Have you lost a job recently to a lower bid, even though you were confident your price was fair for the scope? Same story I hear a lot from contractors we work with. Homeowners rarely have a real way to compare the quality of two bids. They can only compare the number. So when price is the only variable they can see, price is what they use to decide. The fix isn't to always be the cheapest bid. It's giving the homeowner something else to compare, and that something else usually comes down to a few concrete things they can actually see and weigh against price: How clearly you explain what's actually included in the price and what isn't? Whether you walk them through your process instead of just handing over a total Proof that other people had a good experience with you (e.g., reviews, before and afters, past jobs in the neighborhood) What happens if something goes wrong after the job is done? None of these replace a fair price. But when a homeowner can see the difference between two contractors, price stops being the only thing they have to go on. What's worked for you when you weren't the lowest number on the page?How are you qualifying new clients?
This is something we’ve struggled with for a few years. How and when to really qualify clients before you do the estimate. Right now our flow is typically people will call and speak to my Admin and she will book them in for a video call with myself. They can also book and schedule this online through the AI receptionist or online booking. Now because we’re just doing a video call we’re not driving all over. I don’t really have a whole lot of skin in the game. I’m wondering, should I not qualify them too hard? These are the qualifying questions that we’ve been trying to ask. 1. When would you like to get this project done? 2. Do you have a budget for this project? 3. Have you got other estimates that we need to be aware of? Who is hard-core when you do this? If you didn’t like the responses you were getting would you literally stop the video call and say sorry we can’t give you an estimate for this? I would love to hear how hard-core others are doing this? Thanks for your time.How do you calculate your baseline price before sending a quote out?
When you look at a job site, how are you actually building your estimates? Are you pricing based on true operational costs and target profit margins, or are you matching local competitors and hoping there is money left over at the end of the month? Knowing your numbers comes down to a few key questions: What is your true hourly overhead rate? (Total monthly fixed overhead divided by total monthly billable hours) Are you calculating margin or markup? (Markup on cost is not the same as gross profit margin. If you want a 30% margin, multiplying your costs by 1.30 leaves you short at 23%.) What is your minimum shop rate before pulling a rig out of the driveway? How are you handling this in your business?
