Contract pricing defines the parameters of any task and allows contractors to package prices in a fashion to recover their costs.

Have you ever wondered if you were charging the right amount for your services? Of course, you have. It’s only natural. Unfortunately, many contractors set their prices based on the amount charged by their competitors.

Charging $85/tech hour does not make sense (or dollars and cents). But not knowing your true cost of operation and the proportionate hourly cost is insane. Identifying and calculating your true cost per tech hour varies dependent upon tech abilities and geographic locations. 

If you want to increase sales by offering some additional item or service with the purchase of another item or service, make sure you include all your legitimate costs in your package price.

You can only compensate your employees well and make a profit if you know your true operational costs.

Life is a journey. And like all journeys, reaching your destination requires directions and choices such as the route to take, whether to turn left or right at intersections or just go straight.

Consumer trust in your business leads to success. Trust is a very important business-building asset to have.

The old saying is that, “Sticks and stones may break my bones, but words will never hurt me.” However, when one contractor calls the other a high-priced crook or a low-ball fool of questionable quality, neither looks good in the eyes of the intelligent consumer. And if their prices are too high or low, they are hurting themselves.

One of those realities is your employees are actually your partners since they must conduct their duties in the best interest of your business for it to succeed.

Except for pure luck, using set percentages does not reflect actual cost. Percentages should not be used as a formula to arrive at your overhead cost.