Raise Prices 30% -- Make More Money

You’re working your tail off, but the bank account isn’t reflecting it. You’re probably thinking more jobs is the answer, but what if I told you there's an easier way to fatten those margins?

The Problem: You're Undercharging

Look around. You're probably like every other contractor out there -- scared to raise prices. You think you'll lose customers. You worry about the competition. You convince yourself you're “being fair.” But let's be real: you're leaving money on the table. Every roofing job you complete, every HVAC install, every leaky faucet you fix, you're essentially giving away a slice of your potential profit. You’re trading dollars for pennies because you haven't done the math.

The Strategy: Price for Profit

Forget chasing volume. We're chasing profit. The core of this plan is simple: jack up your prices by 30%. Yeah, I said it. 30%. It sounds scary, but hear me out.

Let's say your current average job ticket is $3,000. That means you're aiming for a new average of $3,900. Here's how you get there:

• Figure out your true costs: Know exactly what each job costs you in labor, materials, and subcontractors. Don't guess. Track it.
• Adjust your pricing: Take a look at your pricing sheet. If you’re a landscaper, increase your patio installation price. Plumbers, bump up the cost of a new water heater. If you paint houses, increase the price per square foot.
• Create package deals: Bundle services together at higher price points. For example, instead of just offering a standard roof repair, offer a "Premium Roof Restoration Package" with enhanced flashing and gutter cleaning for a significant premium. If you're a concrete guy, add a sealant coating as a required component.
• Communicate to your team: Explain the reasoning behind the price increase to your sales team. They need to understand that the goal is higher profit, not just more sales. This is especially important if you're using an automated quoting system.
• Prepare for rejection: You will lose some jobs. Your close rate will go down. That's okay. That's part of the plan.
• Monitor everything: Closely track your new close rates and, more importantly, your overall profit margins over the next few weeks and months. This will tell you if the 30% increase is working, or if you need to tweak it.

Quick Example: HVAC Tune-Ups

Imagine you're in HVAC and your average tune-up price is $150. Your costs are $50 in labor and $10 in supplies. That’s $90 profit. Increase your price by 30% to $195. Even if you lose some tune-up jobs, you're now making $135 per job. That's a huge increase in profit for the same amount of work.

Bottom Line

Fewer jobs, more profit.

Now, go out there and raise those prices. Your bank account will thank you later.