TCF983: The Most Profitable Pricing Strategy for Contractors

Jan 23, 2025

Discover the key to transforming your contracting business with an effective pricing strategy that targets a 50% gross profit margin. Tom shares his own experiences with the consequences of poor pricing decisions, emphasizing the importance of a positive money mindset. Learn how limiting beliefs can hinder your financial success and explore the T-BAR framework to reshape your approach. Practical tips are provided to help build confidence in your pricing and ensure you charge what you’re worth. Unlock your potential for greater profitability!

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Unlocking Profitability: The 50% Gross Profit Strategy for Contractors

00:00 • 4min

Mindset Transformation for Profitability in Contracting

03:33 • 2min

Tom shares the single most effective pricing strategy to transform your contracting business. By implementing this approach, you can significantly boost your profits and avoid the common mistakes that keep many contractors stuck in the financial gutter.

Episode Highlights:

[00:00] - Introduction and overview of today’s topic: Pricing for profitability
[00:27] - Tom’s personal story of losing money on a project due to poor pricing
[00:57] - Why every contractor should aim for at least a 50% gross profit margin
[01:52] - How a broken money mindset impacts your ability to charge appropriately
[02:22] - Stop selling in the way you buy: Overcoming limiting beliefs about value
[03:17] - The T-BAR framework: How thoughts, beliefs, actions, and results shape your pricing strategy
[03:47] - Practical steps to shift your money mindset and charge what you’re worth
[04:16] - Introduction to the 50% gross profit calculator and how it simplifies pricing
[04:44] - The Contractor Business School: A comprehensive resource for contractors earning less than $500K annually
[05:17] - Final thoughts: Building confidence in your pricing strategy and embracing your value

Resources:

🧰 CONTRACTOR BUSINESS SCHOOL

If you’re serious about building a profitable, structured contracting business without the chaos, this is your shot. Get the tools, insights, and mentorship you need to level up—on YOUR time, at YOUR pace. https://contractorbusinessschool.com/

⭐️⭐️⭐️⭐️⭐️ Grab our NEW course to grow your business

5 Steps to 5 Stars: How to Charge Premium Prices and Never Run Out of Leads https://thecontractorfight.com/5-stars/

🛡️Join us in BATTLEGROUND - Everything your contracting business needs in one comprehensive program. Three main focus areas: Leadership, Communication, and Numbers. For more info visit: https://thecontractorfight.com/battleground

💰 You didn’t become a contractor to struggle financially. Download our worksheet and start calculating a 50% gross profit on every job. It’s time to get your shit together! https://thecontractorfight.com/50/

🎧 Get on the podcast! - https://thecontractorfight.com/intervention

📘 Grab a free copy of Tom’s book, Winning the Contractor Fight (just pay shipping and handling): https://thecontractorfight.com/book/

🎥 Explore over 1,400 free videos on Contractor Fight TV: https://www.youtube.com/c/TomReber

🎙️ Listen to the podcast archives: The Contractor Fight podcast now features nearly 1,000 episodes.

💬 Join over 18,000 contractors in the free Facebook group: https://thecontractorfight.com/facebook

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