As we ring in 2023 (and check our Christmas spending- Ouch), we can all see the impact of inflation on our household and business budgets. At the grocery store last week, strawberries were $9.98. $9.98! A gallon of milk is $7. Transition that to your business, and you notice the price of materials is up by 20% to 50%. Have you changed your prices to reflect the current market? The greatest price resistance is not always from the customer, but often in our own minds.

In the service industry, contractors sometimes worry that increased prices will put a hardship on customers who have real needs for services for the health, safety, and comfort of their homes. Remember, you have a valuable skill set and true craftmanship – that’s why customers call you! The hard truth is that without increasing your prices, your profit margin shrinks as it absorbs the increased material and labor prices, putting your business at risk. Choose to focus on the value you bring to your customers rather than just the dollar amount: your customers are prepared to pay for the high-quality work you bring to their home.

When you align prices with your local and national market, you can run a better business because:

1. You can pay your technicians more, leading to higher retention and the ability to pay for training.
2. You can offer better craftmanship and quality products to your customers, leading to fewer call backs and more referrals.
3. You can invest in technology and equipment to automate and scale your business, leading to fewer slow seasons and a more efficient office.
4. You as a business owner gain greater peace of mind having a more stable profit margin.
5. You can anticipate increased costs and better absorb them.

Start 2023 off with a bang – increase your prices to reflect market trends and maintain your margins. Your employees and your family will appreciate your business savvy, and your customers will more than likely say nothing, as they are already paying more for products and services everywhere else.

If you need help aligning your prices, call us at The New Flat Rate. We are the #1 Menu-pricing tool that’s completely done for you – no need to spend hours haggling over what price changes are appropriate for your market, since we’ve already done it for you. Your technicians just choose the repair page, show the customer the menu, and automatically add-on sales without even asking. Call us at 706-259-8892, or schedule a demo online at www.thenewflatrate.com.

Melody Chaney is a marketing expert with a passion for helping contractors succeed. She currently serves as The New Flat Rate's Marketing Director, overseeing the marketing department and developing growth strategies. Melody's professional interests include recruiting and retaining technicians, increasing service sales, and using inbound marketing techniques.

Melody's passion for marketing and supporting contractors dates back to her childhood, when she appeared in a trampoline commercial for her father's HVAC company. In her free time, Melody enjoys traveling and engaging with people from all over the world. She also loves driving her motorcycle at high speeds.