How can home service businesses improve profit margins without raising prices?
If you had double your profit margin without raising rates, what would you cut or optimize? Our payroll all-in consistently remains at around 50%, but I was hoping to hear what others are doing considering labor is our biggest expense as home service businesses!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.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?Do you feel confident in your pricing?
Pricing can feel tricky. How do you usually decide what to charge? And what’s one thing you learned the hard way about pricing? In this episode of Masters of Home Service, Wilson Betances (EnergizeUs) shares: The 30-30-30-10 profit formula How knowing your true costs changes everything Why even a 5% price increase can have a big impact on profit Never miss an episode of Masters of Home Service. Subscribe on Apple, Spotify, or wherever you get your podcasts.
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 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!How can I create an invoice for the deposit?
When doing certain commercial work the client will ask us to send them an invoice for the deposit. This isn't typically how Jobber works as the invoice isn't created until the job is closed usually. What is the best way to send a customer an invoice before having the quote signed, deposit paid, or the job completed? Hope that makes sense. Thanks in advance!
