Employees talk about raises and sometimes gripe a little about their pay, but the boss doesn’t have anyone to talk to about his pay — except himself. I often hear service and repair business owners complain they do a lot of business, but don’t make any money. Let’s continue our discussion from last month about ways to get you out of the rut of doing more and making less.
The first question I ask in response to the disappointment I hear in owners’ voices about their profits is, “How much are you charging an hour?” If you are still charging only $45, $55 or $65 an hour (rates I still frequently encounter), then you may fall into this group of low margin/low profit companies. Before I get a chance to show you the benefits of charging more, I usually get the objection that customers may resist increases. The fact is everything goes up periodically, just like your costs have gone up. I find much of the supposed resistance from customers is often in the owner’s mind. In suggesting a solution, I will assume the resistance has some merit and may affect business.