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  1. #1
    Join Date
    Mar 2006
    Posts
    2,032
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    Post How to Charge What You’re Worth

    By Rob 'Doc' Falke
    Cost + overhead + a fair profit is the basic formula used by the HVAC industry to determine the price of a typical repair or equipment replacement. The net result of this practice is an average company net profit of 2% to 3% year-after-year. Let’s take a look at what some companies have learned to do to earn profits on some of their work that is ten times the industry average.

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  2. #2
    Join Date
    May 2016
    Posts
    11
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    I need to charge more

  3. #3
    Join Date
    Jun 2006
    Location
    Richmond, VA
    Posts
    4,171
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    Read the posts on this site about pricing.........

    Someone posts about a customer getting a $1000 bill for a repair......then the choir chimes in about how they would have done the repair for "half" that.....Or.. after the prices have been deleted you get the "I saw what you paid...you paid too much"

    My belief is we are installing equipment that is supposed to last 14-20 years and any lowballer can hack on it and it last a few years......
    I wish I had a $1.00 for every response I deleted.....

    "Decidedly Superior in a twisted pathetic way".....

  4. #4
    Join Date
    Nov 2016
    Location
    Colorado
    Posts
    9
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    This is a great article. There are two things at play that affect pricing:

    1) Authority. If you can show customers your authority, based on years of experience, qualifications, training...and from a lot of good testimonials and reviews, you can demand higher prices. Especially if you are upfront about why your pricing is higher; some people will be turned off by the fact that you are not the lowest bid. But if you can show why it is worth paying you more, you will have good customers...and not only that, you will find the kind of customers who refer you because of the excellent work you do.

    2) "Head trash". It is super easy to get stuck thinking it's wrong for you to charge more. Somewhere deep down, or way back in the past, someone told you that money is inherently evil, and getting paid well is wrong. There's always a level that the market won't bear... but there's probably a level below that where you say (to yourself), 'woah... I can't charge that!' Why not? If you don't have a good reason why not except that it 'feels wrong', that's head trash my friend. If you're up front about pricing and can defend it to your customers, and they will pay it... then it's an internal issue to work through.

  5. #5
    Join Date
    Nov 2016
    Location
    Toronto, ON
    Posts
    9
    Post Likes
    No need to add same link 2 times. LOL

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