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:

1. Doubling your cost of goods
2. Doing a blended multiplier
3. Selling labor only

Resources:

Submit your questions to [email protected] with the subject “Podcast” and Tom and Dan will try to answer them on an upcoming show.

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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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