So, your service business is going through some difficult times. That doesn’t mean you need to throw in the towel. This just means there's a few things that you’ll need to change in your business to get things back on track. The first question you’ll need to ask yourself is, “Are you charging enough?”
In your service business, you’re running a business, point blank. Your job is to provide a service to your customers and to make a profit. Profit is defined as “the ratio of profit for a given year to the amount of capital invested or to the value of sales.” When you look at your finances, you’ll need to see how much you’re paying your employees, benefits that you offer and normal day-to-day expenses (ie. gas, electricity, tools, etc.). We have a cheat sheet for you to look over that shows what contractor profitability is. Or, if you’d like to see more on profit that we have provided for contractors like yourself, we’ve got that covered here.
So, back to the question at hand. How do you know if you’re charging enough? This calls for just a few more questions, and no, we’re not playing 20 questions. Do you walk away from service calls thinking that you may have given them a good deal and it may hurt your wallet? Do you feel the need to “pinch pennies” in order to keep your business afloat? Last one, do you feel that your business is doing well? These are tough questions to answer, but this is what we find many contractors coming to us saying.
We work with contractors from across the country to provide them with a solution that allows them to not question if they’re making enough money. With this specific infographic, it’s going to break down what the majority of contractors in your area are charging to take out the guessing game.