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Adjusting your prices for 09??

DJ Carroll

New member
Can you explain that?

I was refering to what Dan said

plainpainter said:
But if I went to estimate folks and only got 1 job in 20 - that would be very bad. That would be so bad - I wouldn't even consider my price was too high - you'd have to priced at quadruple the 'going' rate in order for that to happen.

Jim was stating that if you only close 1 out of 20 estimates you would have to be super high priced. Not necessarily. My comment was that there is more to this biz than price. Jim you often seem like price is always your biggest factor. If some one shows up in a beat up van, with wholes and bleach stains on there jeans and a Budweiser t-shirt. . . I don't care what your price is im not hiring you!

that make sense tony???

Terry Miller

New member
National average for closing residential service bids used to be 35%. Today, it is about 25%. I base this on our records and hearing from other contractors. Adjusting prices should only be made in critical areas. Never in the bottom line. Reduce profit, never actual cost of doing a project. Why would anyone reduce their cost to below their break even price? You'd be out of business soon. That is why it is so important to know what it cost you to run your business. Thank you.

Ken Fenner

I close on average 50% of my sales. Thats a blended percentage with decks coming in at 35% and house washes coming in at 65%. House washes are more lucrative then decks so I am reluctant to drop that closing percentage even though the numbers are telling me I should raise prices.

Its difficult to hone in your closing percentage until you have been in business for awhile. No matter what I type here and how many experienced pros would back it up, there are going to be many new guys that think they have to get every job. The sole reason for that is because their phone is not ringing enough.

servicemark p.w.

New member
we will have to see how the market unfolds. right now we plan business as usual. no increases, historically when the economy takes a dive, we tend to do more work, people tend to make their castle a priority, a place they can enjoy, when they can't afford to go on vacation. we will focus on higher end residential and gov. work for now. not going to cut prices or quality.

Tony Shelton

Environmental Consultant / Past Director
Our pricing today is about 15-20%less than it was in 2008. Our local competition has reduced pricing by mire than double that ans cut a lot of staff. I plan to keep our pricing right where it is for the next few years. My competition is trying to raise prices bow and I am taking their customers because of it.
Streamlining your operation is more likely to produce steady profits than trying to pretend your service is better just because your invoice is higher.

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