Pricing For Profit

Many contractors consider estimating and pricing to be the same thing, yet the two are entirely different. A job’s price should be shaped not just by the estimated cost, but by your assessment of the customer, the market, and most important, by your own need to make a reasonable profit. Until you recognize these differences and master the “art” of smart, profitdriven pricing, you will not be able to make money consistently. Unfortunately, few contractors understand the several different pricing strategies available. Big corporations have full-time employees who figure out what price a widget must carry to increase market share, generate the largest net profit, and beat the competition. This is not always the lowest price, and the cost of producing the widget