Over the years, I have seen many hardworking contractors who don’t price their jobs or their services so that they make a real profit. They think that they are, but when they get their financial statements they’ve worked for wages or are losing money — even though they are working hard.
I have developed a series of rules that you can use to ensure that you will price your jobs and services so that you make a profit. Using these rules, you can also “what if” yourself to death. For example, you can find out how much you need to sell if you raise your overhead by 5%, want to hire a parts runner, or add production personnel.