“Am I selling at the right price?” This was the start of a conversation I had with a plumbing contractor at the end of 2013. It’s how many of my first conversations happen with contractors I coach. My answer is, “I need more information.” The “right price” doesn’t mean a magical number is floating around that everyone should be using to sell their services. It does mean that for your business, the right price is based on specific financial assumptions to help you achieve business and personal goals.
I worked with this contractor to determine his right price. I’d like to share this process with you so that as you work through this year, you can start to apply it in your own business. You may want to have your 2013 financials available to apply what I did here to your own results. I started by reviewing his 2013 consolidated profit-and-loss statement. I’ve highlighted the actual numbers in the chart below.