How to Work Out the Margin Your Business Actually Needs
You hear “charge 45% margin” thrown around a lot. Your mate says he runs at 40%. Your supplier says 50%. The bloke at the pub swears 35% is plenty. So you pick a number that feels about right and hope for the best. Here’s the problem. None of those numbers might be right for your […]
Example: Good, Better, Best Options on a Service Call
One of the easiest ways to improve service calls is simple. Give the customer clear options. Not one solution. Not pressure. Just a clear view of what’s possible so they can make the right decision for their home. A common way to do this in the trade is using a Good / Better / Best […]
Why Giving Customers Options on a Service Call Matters
“The biggest mistake on service calls isn’t technical. It’s communication.” Most techs know how to fix equipment. But the real difference between average service and great service isn’t just the repair. It’s helping the customer understand their options and make the right decision. This is something many trade businesses learn the hard way. The Reality […]
Trade Industry Gross Margin Benchmarks (Residential & Projects)
Margins in the trades can be confusing. Ask five contractors what “good gross margin” is and you’ll get five different answers. Why? Because margins depend on: The type of work (service vs project) How labour is treated in COGS Business model maturity Overhead structure Pricing discipline So before looking at benchmarks, here’s the clean definition […]
Why HVAC Service Departments Need to Charge Based on Billable Hours
If your service department is busy but the numbers never stack up, this is usually why. Most HVAC service pricing is built on the wrong foundation. Not bad work. Not lazy techs. Not lack of jobs. Bad pricing logic. The Core Problem With Service Pricing Most service pricing is done one of three ways: Flat […]
How to Determine the Right Margin for Your HVAC Business
Getting your margin right isn’t about being greedy. It’s about making sure your business survives, grows, and actually rewards the hard work you put in. If your margin is wrong, you can be flat out every week and still go backwards. Here’s how to work out the right margin for your business, step by step. […]
Why Margin-Based Pricing Is the Smarter Way to Quote Jobs
Pricing jobs right is one of the biggest challenges in any trade business. A lot of businesses stay busy. The phones ring. The team is flat out. But at the end of the year, the money just isn’t there. Most of the time, the problem isn’t work — it’s how the jobs are priced. One […]
How to Price a HVAC Installation Job
The easiest way to understand pricing is to picture a job like a pie. Let’s use a $10,000 HVAC installation as the example and break it down piece by piece. Step 1: Start With the Full Job Price You sell the job for $10,000. That money doesn’t all go to the business. It gets split […]