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.Those who charge for inspections, do you have a flat rate or does it depend on the porperty?
I recently got a request for a rodent assessment for a house that is about 10,000 sqft, an absolute monster of a house with 6 levels, a 4 car garage (buddy has a McLaren 750S, Porsche 917, Ford GT and a Range Rover!!!), vehicle lifts, elevator, separate chef kitchen, indoor pool...the works! I told the homeowner my standard fee for a more modest sized house, and that I would have to triple that to be able to spend the time at their home and not feel rushed. They did agree and made no issue out of it but it did make me wonder how other people approach this. Then I found the issue areas and they were about 3-4 times as many as a regular house and the cost reflected that. More doors, vents, cracks, holes, utility lines...it was insane. Should I have kept the inspection charge the same knowing I would find many many more holes or was it smart to up the inspection charge?Are You Building a Business or Just Creating Yourself Another Job?
It’s easy as a small business owner to get caught up doing everything yourself. At what point do you start delegating, hiring, or putting systems in place so the business can operate without you being involved in every job? I’d love to hear how other owners are making that transition while still keeping quality and customer service high.Should customers pay more if they refuse auto-pay?
Auto-pay saves a lot of admin time in a recurring service business. Manual billing sounds simple until invoices sit unpaid, cards fail, reminders pile up, and someone has to decide whether to pause service. That extra follow-up has a cost. I don’t think every customer who avoids auto-pay is a bad customer. Some people just prefer more control. But if one customer requires more billing work every month, should they pay the same price as someone on auto-pay? I’m starting to think manual billing fees make sense. Something simple like: “Auto-pay is included with monthly service. Manual invoice payment is available for an added admin fee.” Do you require auto-pay, charge more for manual billing, or let customers pay however they want?What’s Your Target Gross Margin vs. Actual Net Margin? Let’s Benchmark.
In home services and contracting, top-line revenue gets all the attention, but net profit pays the bills. Many trade operators aim for a 40–50% gross profit margin to retain a healthy 15–20% net margin, but actual figures vary significantly based on team size and trade complexity. A standard healthy benchmark breakdown often looks like: Cost of Goods Sold (Direct Labor + Materials): 50–60% of revenue Overhead & Operating Expenses: 25–30% of revenue Net Profit Target: 15–20% of revenue I’d love to benchmark with the community: Are you hitting your target net margins consistently as you scale, or is overhead creeping up faster than revenue? Where are you seeing the biggest pressure on your margins today?Are You Selling Your Service… or Selling the Experience?
Customers have more choices than ever. Sometimes the difference isn’t just the service you provide, but how you make people feel from the first interaction to the final follow-up. What are some ways your business creates an experience that keeps customers coming back?Service Agreement Ideas for Project Based Businesses
This one has got me racking my mind. One thing they always talk about when you are building enterprise value in a business is having predictable revenues. I think for something like window washing, lawn care, poop scooping etc it'd be easy to have predictable revenues because it's pretty straightforward to have a re-occuring service agreement. But what about us GCs? I originally thought I could get people with a membership for a percentage off jobs. This seemed like a good idea till the first two people to sign up only did so because they had large $40k plus jobs so it was a no brainer (it paid for itself 2x over). If I tried to make the percentage off smaller, it wouldn't be enticing enough to get people interested. Let's brainstorm here guys - what can a general contractor do as a monthly or quarterly service to get in to the service agreement game?Are discounts teaching customers to wait instead of buy?
I’ve been thinking about this more as we use more offers during slower seasons. Discounts can work. I’m not against them. We’ve used first-cleanup offers, prepayment offers, reactivation offers, seasonal promos, and different incentives to get people moving. Sometimes a discount gives the customer the little push they needed. It can help fill routes and bring back past customers. It can create cash flow and get someone to finally say yes after sitting on the quote. The problem starts when discounts become the main reason people buy. If customers only take action when there’s a deal, you may be training your market to wait. They learn your normal price is flexible and that your urgency is artificial. That can hurt your business over time. For a recurring service business, this matters even more because the first sale is only the beginning. If someone signs up because of a discount, you need to know whether they actually value the service at the regular price. A discounted customer can still become a great customer. But if the discount attracted someone who was never going to pay full price, you may have created a churn problem instead of a growth win. I’ve had to think about this with our own offers. When we send a first-month discount or a reactivation offer, I don’t want the message to sound like: “We’re cheap right now.” I want it to feel more like: “This is a reason to take action now.” That’s a big difference. The offer should support the value, not replace it. For example, I’d rather tie a discount to a clear situation: First cleanup when starting recurring service Prepaid months Seasonal restart Route opening in a specific area Past customer reactivation Limited schedule availability Add-on bundle That feels different than randomly cutting the price because leads are slow. Random discounts can make the business look desperate. Structured offers can still protect positioning. The other thing I think about is who the offer is for. A discount for a loyal customer who prepays is different than a discount for a brand-new price shopper who hasn’t shown any commitment. A discount to reactivate a past good customer is different than chasing someone who ghosted 5 follow-ups and only responds when the price drops. Those are not the same lead. I also think discounts need boundaries. How long is it available? What service does it apply to? Does it require recurring service? Does it require card on file? Does it require prepayment? Does it apply to add-ons? Does it stack with anything else? Without boundaries, the discount becomes negotiable. And once customers learn your price is negotiable, some of them will keep negotiating. That creates problems for the sales process and the brand. The goal is to use discounts without damaging the perceived value of the service. If your service is reliable, professional, well-communicated, and priced correctly, the discount should not be the strongest part of the offer. The strongest part should still be the outcome the customer wants. For us, that means a clean yard, waste hauled away, gate photo after every visit, clear communication, and one less thing the customer has to worry about. The discount may get attention. The service has to justify the full price after that. Have discounts helped your business grow, or have they trained customers to wait for a better deal?
How do I explain the value of my services without defending my prices?
What's one service that customers consistently underestimate the value of? For me, it's often the planning, preparation, and experience behind the work—not just the labor itself. How do you educate customers on the value you bring without feeling like you're defending your prices? I'd love to hear how others approach these conversations.
