Doing work to do work isn't a business, that's a hobby with payroll. We price off a formula that carries the entire operation, from overhead to benefits to training and beyond. If your number doesn't account for all of it, your busy season is just expensive exercise.
@officialchadpetermanTranscript
There is a large percentage of the contractor population who is just doing work to do work. We have to be priced right. Oftentimes I hear, "Wow, your prices are way too high." Well, we have a mathematical formula that takes into account all of the overhead it takes to support this operation, plus paying our field pros appropriately, providing benefits to them, making sure that they have trucks and gas and insurance and all of these things make sure they have the training that they need. All of these things need to be taken into consideration.
Download Transcript
Related Videos

Here’s the fastest way to know if you’re making money or just staying busy: know your three numbers. 50% gross profit. 35% overhead. 15% profit. If you can’t say where you stand on each right now, that’s the first problem to fix.

If I could only track five numbers in my HVAC sales department, it would be: revenue per lead, close rate, average install revenue, discount rate, and revenue to budget. Most owners track none of them daily and then wonder why the month got away from them. Measure every day and the numbers stop surprising you.

If your tech left for $2 more an hour, money wasn't the problem. The problem is there was nothing else keeping them. Techs spend most days working on their own. If the money's right, it's the one-on-ones, the organizational support, the daily encouragement that keeps them here. A small raise can't outbid a place people actually want to work and feel supported.

This is where we build technicians from scratch. Zero experience walks in, and electricians, plumbers, and HVAC pros walk out. Everything in this lab is functional. They can tear it apart, we can plant faults, and they can fail safely here instead of in a customer’s home.