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Coaching Cuts: Taking on Work for Friends and Family
Manage episode 487776782 series 3385001
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We tackle the delicate balance of working with friends and family in the contracting business, focusing on proper pricing strategies to maintain both relationships and profitability.
• Never give upfront discounts to friends and family
• Always build in extra padding (35% profit minimum) for unexpected issues
• Story about refinishing hardwoods for a relative and the importance of having cushion
• If everything goes well, you can discount the final invoice down to 25% profit
• Minimum 25% profit necessary to cover business overhead (which averages 21%)
• Opportunity to be a "double hero" by giving unexpected discount after job completion
• Average contracting business has 21% overhead costs on every dollar
• Working at cost or minimal markup actually costs you money in the long run
Visit ProStruct360.com to learn more about our coaching services or to schedule a free 30-minute consultation. Our software can help run your contracting business from estimate to final invoice.
Have a question or an idea to improve the podcast?
Email us at [email protected] or text us at +1 (678) 940-5747
Want to learn more about our software or coaching?
Visit our website at ProStruct360.com
Chapters
1. Introduction to Coaching Cuts (00:00:00)
2. Dangers of Discounting for Friends (00:00:33)
3. Hardwood Refinishing Family Story (00:01:22)
4. Pricing Strategy for Personal Connections (00:04:36)
5. Episode Closing and Contact Info (00:08:43)
145 episodes
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