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Old 02-18-2009, 08:41 PM
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PROCUT1 PROCUT1 is offline
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Join Date: Dec 2003
Location: TN
Posts: 4,857
Quote:
Originally Posted by humble1 View Post
thats the best time to raise the price. Marty Grunder seminar I went to: If you are closing more than 10% of your bids, you are too low in price.
What if.

Your company is growing
You show a nice healthy profit
No debt
Bills paid on time
Well compensated, happy employees
Very nice salary for the owner.
Money in the bank.

And youre closing much higher than 10%?

I like to stay away from "one liners" and generalizations.

Like the "dollar a minute" rule you hear on here. Post a thread on what to charge for mowing....They all say "a dollar a minute"

Would my company survive on a dollar a minute?
8 employees
12 trucks
office
shop
bills
insurance more than an average americans salary

Would a dollar a minute cover that? You have no idea. Nobody has any idea, they dont ask those kind of questions.

Could you survive on a dollar a minute? I have no idea. I know nothing about you or your business.

But guys on here will argue for 5 pages that "a dollar a minute" is what you charge.

If you and i have identical businesses with identical overhead and bills.

We both bid a job

I bid 20,000

you bid 15,000

I get the job.

Im charging more than you, and im making 5,000 more off the job than you would but I got the job.

Is that because my price is too low?

Or could I have been a better salesman?

If we repeat that a bunch of times.......Do I have to raise my price?
Im already selling the job at a higher price than my competitors.
And Im closing more jobs than they are?
Im making a nice profit too.

Do I need to jack up my price because Im a better salesman?

Am I getting the jobs because Im too cheap?

Or am I getting them because I sold the customer on my company?

Im already 5,000 higher than my competitor. So if I hit that 10%, how high do I raise the price?

Whats the perfect number so I close the maximum number of sales for the maximum profit?
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