Does your pricing work?

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what pricingLast week I worked with four different contractors and people in two different programs and discussed pricing.

Oh my.

Contractors, can you make sufficient margin selling air-sealing insulation at your current pricing? (Or selling air-conditioning? or any other service you provide? Do you know?) If you can’t, then you’ve got a few choices.

The first is what too many contractors do. They keep selling ...

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Your Operating Plan – An Important Management Tool

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Operating Plan SnippetWe’re not even halfway into 2016. And baseball season is just getting underway (and the Cubbies are looking formidable). It’s not too early, however, to consider some as-in-baseball, as-in-life wisdom. Now, he might not have been talking about residential contracting businesses, but Yogi Berra said “If you don’t know where you’re going, you might not get there.”1

While I’m quoting old guys, we’ve also got Ben Franklin’s “If you fail ...

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The most expensive contractor (part 4 of 4)

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This is the last of a 4-part series on pricing from Mike Gorman. It costs more to deliver quality work. If it costs more, you should charge more.

How Does This Fit Together?

A lot of homeowners are open to understanding the costs and benefits of a higher-quality job, but only if we are willing and able to inform them. Depending on whose research you read, as few as 10%–15% of consumers use price as their primary deciding factor. I would like ...

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The most expensive contractor (part 3 of 4)

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This is Part 3 of a 4-part series on pricing from Mike Gorman. It costs more to deliver quality work. If it costs more, you should charge more.

Building Your Estimate

The starting point of any estimate should be the cost of the plans and permits required to build the project. To apply the concept of unit cost to this part of the estimate, we’ll look at some cost items, starting with the plans and the proposal. Time is money. This ...

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The most expensive contractor (part 2 of 4)

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This is Part 2 of a 4-part series on pricing from Mike Gorman. It costs more to deliver quality work. If it costs more, you should charge more.

Determine a Fair Price

Instead of lower prices, try to establish fair prices. Fair prices are based on the true cost of doing business. Start by taking a look at how much it costs to operate your business, and be realistic. The remodeling side of home performance contracting is truly one of the ...

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The Most Expensive Contractor (part 1 of 4)

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This is the first installment of a 4-Part series on pricing from Mike Gorman. It costs more to deliver quality work. If it costs more, you should charge more.

Not everyone can be the most expensive contractor. The ability to continuously charge the highest prices doesn’t come by accident; it is usually the result of careful planning and execution.

Being the most expensive isn’t a bad thing. Throw away the notion that having the reputation of being most expensive could harm ...

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You Got the Phone Call. Now What?

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A coffee-stained napkin is not the best CRM system!

Leads are the starting point. Now you’ve got to help them become buyers. That initial phone call plays an important role in the process.

The phone rings! Congratulations, your marketing worked, and you’ve got a lead. But you can’t sell home performance on the phone. You need to turn that call into an appointment, and ...

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You Got the Phone Call. Now What?

Posted by:

A coffee-stained napkin is not the best CRM system!

Leads are the starting point. Now you’ve got to help them become buyers. That initial phone call plays an important role in the process.

The phone rings! Congratulations, your marketing worked, and you’ve got a lead. But you can’t sell home performance on the phone. You need to turn that call into an appointment, and ...

Continue Reading →
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Efficiency Programs Shouldn’t Ignore the Demand Side of the Equation

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Just because you can deliver something, doesn’t mean anyone wants to buy it. It’s called supply and demand. You could teach me to sing, but I probably wouldn’t sell a single record.  People choose what they want, and few will want to hear me sing! (Trust me on that.)

In the home efficiency world, over the past decades, we have focused on a lot on the supply side. We’ve trained tens of thousands of technicians how to ...

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