You’ve been working extra hard all year.
It sure would be frustrating to find that you’re making less than you should be!
It’s common for successful contractors to be too slow in adjusting their prices to reflect new costs. They don’t want to cause trouble with their loyal clients, even when their clients are willing to pay more.
Cost increases are happening quickly this season in these three areas:
- Manufacturer material price increases. Almost every major industry manufacturer – and plenty of the smaller manufacturers – have announced price increases of up to 10%. Some are planning additional increases this fall. Others say that once they start to receive post-tariff inventories, we could see components go up 25% or more.
- Employee costs. “Employee quits” have skyrocketed as workers go elsewhere for better pay and benefits. Keeping your best people should be your top concern. You will need to invest more in wages, benefits and work environment. Raising prices helps you generate the profits you need to build a stronger business.
- Routine costs. Fuel, office supplies, machine rentals, rents, interest and much more are rising. Do not try to absorb these.
Have you adjusted your prices upward to cover these new increases?
Failure to adjust your pricing will result in a lot of hard work — with little profit to show for it.