The Contractor Fight with Tom Reber TCF596: Contractor Q&A: "What are the Other Ways to Make 50% Gross Profit Besides Doubling Labor Cost?"
Tom and Dan reply to a question asked by Liam, an electrician, about making 50% gross profit. Liam states the cost of electrical materials can be extremely high. So, how can he still make that 50% gross profit other than doubling the labor?
In this episode, we talk about…
- Present your cost to the client with confidence
- Don't be afraid to price your service at 50% Gross Profit - If you have 100 customers, 20% of them will spend at least ten times more on your service.
- Build your brand — When you build a strong brand, people don't care about what you charge.
- Three ways you can price your service to make 50% gross profit:
- Doubling your cost of goods
- Doing a blended multiplier
- Selling labor only
Resources:
Submit your questions to help@thecontractorfight.com with the subject “Podcast” and Tom and Dan will try to answer them on an upcoming show.
Visit our sponsors of this episode, NiceJob. NiceJob is Reputation Marketing software that will help your business collect 2-3 times more reviews on Google, Facebook, and the platforms that matter. Don’t forget to use code “Fight” for $50 off the first month on new accounts! https://www.TheContractorFight.com/nicejob
Are you stealing money from your family because you aren’t charging enough for your services? Discover what you SHOULD be charging. Download our 50% Gross Profit cheat sheet: https://thecontractorfight.com/50
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