Consumers want value for their dollar. Contractors who are intelligent business people strive to deliver performance excellence. This is due, in part, to the correct calculation of costs, the application of a proper profit margin and the development of the correct selling price.

As we’ve dealt, or not dealt, with high inflation in the last few years, it is imperative to note that rising business expenses will need to result in higher pricing in order to make a profit.

Giving your customers a simple questionnaire about your company’s prices and services will provide you with valuable insight into challenges you need to fix and the qualities they appreciate the most.

Building your business around the principles of honesty, integrity and prudence will bring you more success than deception and greed. 

As older technicians continue to leave the industry, ensuring that new technicians know how to treat customers honestly and fairly is vital. Business owners must recognize and compensate outstanding techs so they stick around and influence apprentices and new techs, creating a circle of knowledge that will only benefit you and your company. 

Certain situations negatively affect the contracting business arena; some are facts, while others are figments of the imagination.

If a contractor finds his profits decreasing, it may be time to examine task pricing and how many revenue-producing hours your technicians bring in. 

Networking and training are the best reasons for joining an industry group. They also keep members abreast of legislation and regulations that can positively or negatively affect them. Keep an open mind and see how an industry association can help your business.

When your technicians believe you are rich because of the prices you charge, it’s up to you to educate them about how your business is run and how the hours they work contribute to the company’s profitability.

What beans should you count to do what is right for your business to succeed? Read on to determine the just-right factors to properly price your services while collecting a profit.