Materials went up. Insurance went up. Fuel, software, your helper's pay. If your prices stayed the same, the difference came out of your profit.
A lot of contractors and trades go years without a price change because it feels awkward. Here are signs it might be time:
Your costs went up and your prices didn't.
You're booked out for weeks. Steady demand is often a sign you're priced below the market.
Your gross margin is shrinking even though you're busy. (Your job costing from Issue 058 will show this.)
It's been more than a year since you last changed prices.
Hypothetical: a business doing $400,000 a year raises prices 5% and keeps the same customers and costs. That's $20,000 more a year, and because costs didn't change, most of it reaches the bottom line.
A few ways to make it easier:
Raise prices for new quotes first.
Give regular customers a heads-up with a date.
Know your break-even number (Issue 074) so you're pricing from facts, not nerves.
If you're not sure what your prices should be, send me a message through the Contact page and we can look at your numbers together.
— Rachel, Two Miles LLC