Here's an e-mail message I recently received. It is typical of the many requests that I receive daily.
"Dear Mr. Blau, I am going into business for myself, and need to know how to figure out my hourly rate. I recently ordered Ellen Rohr's new book, and she recommended I purchase your book, too. Will your book instruct me on exactly how to figure an accurate hourly rate and a selling price? I plan to go with flat rates as soon as I can afford to purchase your flat rate system."
Imagine going into business without enough capital even to purchase some basic instructional books. This statement speaks volumes about our industry. It is open to anyone with a plumbing license -- or even without one -- and mechanical skills. And this is the source of our biggest problem: People enter the field without knowing a thing about business economics. They are playing a big guessing game with their prices and end up buying themselves most jobs.