TCF556: Contractor Q&A: “Why The 50% Gross Profit Rule is Right?”

Tom and Dan address the concern of a contractor about the 50% gross profit rule, who argues that 50% gross profit is ripping people off when it comes to home renovations. He claims while 50% gross profit may make sense on a smaller project — like a French door installation — it seems outrageous when doing renovations on a large scale.

In this episode, we talk about…

Understanding how money works in a business
50% gross profit is feasible, and that does not mean you are screwing your customers
Selling shouldn't be based on your own budget or your own assumptions about the value.
When you make more profit, you can:

Provide a better experience to your customers
Honor your warranties
Make a callback and not argue with the customer
Hire better people
Take care of your team, provide them with training, and provide them with a career path

Resources:

Submit your questions to help@thecontractorfight.com with the subject “Podcast” and Tom and Dan will try to answer them on an upcoming show.

Are you stealing money from your family because you aren’t charging enough for your services? Discover what you SHOULD be charging. Download our 50% Gross Profit cheat sheet: https://thecontractorfight.com/50

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Published on 3 years, 8 months ago

Podcast Episode Details

TCF556: Contractor Q&A: “Why The 50% Gross Profit Rule is Right?”