It’s time to review the issue of pricing. I say that because, based on some of the pricing we’ve seen going around, contractors are no longer using the proper systems for establishing prices. Now, I understand what is proper for one contractor may not be proper for another, but the important thing is, as a contractor, you use consistent methods for developing your pricing. We believe this to be extremely important because we receive a lot of referral business. When a customer refers our company to another customer, we want to make sure that new customer receives the same level of pricing we gave the referring customer. The only way this can happen is if your pricing is consistent.
Consistent pricing starts when you develop your budget. Within this budget, you will have established the percentage of overhead you anticipate as well the desired net profit. We’ve developed some easy-to-use budgeting systems as well as pricing spreadsheets. If you contact me at the email address at the top of this page, I would be happy to forward those to you.