Pricing
What to charge, when to raise it, and how to defend the number.
28 topics
How to raise prices without losing your best customers
Most owners under-price by 10-20% at any given time. A 5-8% increase usually lands without drama.
Margin calculations every owner should know
Gross margin, net margin, and contribution margin. What each one tells you and what it doesn't.
When (and when not) to discount
Discounting is a tool. Most owners use it as a reflex.
Setting profit targets that actually drive behavior
A profit target nobody talks about is a wish, not a target.
Value-based pricing for service shops
Cost-plus pricing leaves money on the table on your best jobs and loses you money on your worst ones.
Flat-rate vs hourly vs subscription
How you charge shapes how customers behave. Pick the structure that fits the work.
What to do when a competitor undercuts you
Most undercutters are losing money. Don't follow them into the hole.
Deposits and milestone payments without losing the job
If you're funding your customer's project out of your own cash, you have a deposit policy problem.
Change orders that don't kill the margin
Scope creep is a pricing problem disguised as a customer-service problem.
Setting a minimum job size without sounding rude
Tiny jobs cost more to schedule than they earn. The fix is a clean policy, not a guilty no.
Reviewing every price every year
If you only raise prices when things hurt, you'll always be behind on margin.
Package pricing for service businesses
When customers can't easily compare you, packaged offerings remove the price-shopping conversation entirely.
Pricing warranties and guarantees without losing money
A guarantee is a sales tool, but it has to be priced in, not absorbed.
Why good-better-best beats a single price
Single-price quotes force a yes/no decision. Three-tier quotes let the customer choose how to say yes.
Pricing psychology that actually works in trades
Some pricing tricks are gimmicks. A few are real.
Recurring revenue for service businesses
A maintenance program turns one-time customers into monthly revenue. Most trades underuse this.
Pricing emergency and after-hours work
Emergency calls cost you sleep, schedule, and crew morale. The pricing has to reflect that.
Different pricing for different customer types
Pricing the same way for every customer leaves money on the table with some and loses you others.
Pricing decisions that protect cash flow
Profitable on paper, broke in the bank account is a pricing problem disguised as a finance problem.
Setting prices for your market, not the internet's market
National averages are useful context and terrible pricing inputs.
Service call and diagnostic fees, done right
The diagnostic fee is the bouncer at the door. Charge it confidently or expect a stream of price-shoppers.
How to actually present the price
Most price losses happen in delivery, not the number itself.
Using rebates and incentives without devaluing the work
Manufacturer rebates and utility incentives can move deals if you handle the paperwork. Most shops don't.
Pricing renovations and longer projects
Long jobs hide every pricing weakness. The fix is structure, not bigger numbers.
Pricing has to fund the team you actually have
If the labor rate doesn't cover the real cost of the labor, no amount of volume fixes it.
Menu pricing vs custom quoting
Menu prices speed up small jobs. Custom quotes are needed on bigger ones. Use both.
Communicating a price increase without losing customers
How you announce a raise matters more than the percentage you raise.
The most common pricing mistakes in shops
If you're making any of these, fixing one of them is worth more than a year of marketing.
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