Low Pricing: There’s No Virtue in Bankruptcy

Too many contractors set their service pricing by accident. For this reason one contractor out of five closes every year when the economy’s strong, let alone when it’s weak. Service pricing should be set at a level where you can pay your bills, pay yourself, pay your employees, provide training, invest in the growth of your company, and leave a little left over. In other words, service prices should be set to earn a targeted net profit.
Sounds obvious, right? The question then, is why don’t more service companies charge what they should?

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