TCF803: When Should You Charge 50% Gross Profit

Aug 31, 2023

Tom Reber answers the common question of when to charge a 50% gross profit for contractors. He dispels myths about which industries can hit the mark. The podcast also emphasizes the importance of knowing your numbers and having a pricing strategy. They discuss the profitability of builders in new construction and the significance of building a strong brand before charging higher prices.

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Introduction

00:00 • 2min

Knowing Your Numbers and Charging 50% Gross Profit

01:59 • 4min

Understanding Your Numbers and Making Informed Decisions

05:57 • 4min

Analyzing the Profitability of Builders in New Construction

09:44 • 2min

Knowing Your Numbers and the Importance of a Pricing Strategy

11:40 • 4min

"When should you charge 50% gross profit?" — Tom answers this common question asked by many contractors and breaks down the rule of thumb for achieving the 50% gross profit. He also addresses the common objections by some contractors, like "I'm a GC. 50% Gross Profit is not possible for me," and dispels myths around what industries can and can't hit the 50% mark.

Conversation Highlights:

[00:00] - Intro

[00:58] - What 50% gross profit means

[01:47] - When should you charge 50% gross profit

[02:21] - How can contractors charge 50% if they don't know their numbers

[03:38] - GCs can charge 50% gross profit too

[05:28] - Situations when a lower gross profit is acceptable

[09:54] - Custom home builder charging 50% gross profit

[11:22] - Wrap up

Resources:

The Mile High Profit Summit isn't your typical boring contractor conference. Our speakers are experts who will keep you engaged with valuable tips and tricks that will immediately impact your bottom line. You can say goodbye to boredom and welcome actionable insights to help you skyrocket your profits!

Visit http://MileHighProfitSummit.com and join us in Denver this September.

💰 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/

💸 Grab your copy of our FREE Contractors Guide to Spotting Cheap Prospects here: https://thecontractorfight.com/cheap

== Join us in BATTLEGROUND ==

Everything your contracting business needs in one comprehensive program with three main focus areas: Leadership, Communication, and Numbers. For more info, check out: https://TheContractorFight.com/Battleground

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https://gear.thecontractorfight.com/

== Find Us on Social Media ==

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