Contractor Evolution
202. How Much Should Contractors Charge? - Ellen Rohr
Mar 5, 2025
Ellen Rohr, an industry legend and founder of Zoom Drain, shares her wealth of knowledge about contractor pricing strategies. She emphasizes the importance of understanding costs and effectively communicating value. Ellen discusses how to determine what to charge based on financial goals and market positioning. She also delves into the significance of billable hours and training sales teams to confidently convey pricing. In a world of inflation, she offers insights on adapting pricing while maintaining customer relationships and industry standards.
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Quick takeaways
- Pricing should reflect actual operational costs and value provided rather than just competitor rates to ensure profitability.
- Establishing trust through consistent service quality is crucial for justifying higher prices and securing long-term customer relationships.
Deep dives
Mastering Pricing Strategies
Determining the right pricing for services is critical for business growth and profitability. It emphasizes that price is often the easiest lever to pull when trying to improve financial outcomes. Or tying pricing to actual costs rather than competitors’ rates ensures businesses avoid underpricing their services. A framework is proposed, which includes calculating all operational costs and appropriately inflating them to derive a selling price that reflects value.
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