It's easier to maintain a balance of costs, pricing and profits in times of a stable economy. When business opportunities are growing, inflation is minimal, and the cost of borrowing is low and available for equipment, inventory or expansion, pricing procedures are not as crucial.
But, in difficult times when the economy tightens, lending is constricted and inflation is heating up pay attention to business fundamentals. Pricing has to reflect the true cost of labor, material, overhead and profit. If just one of these elements is slighted, trouble will not be far behind.
Profit margins can be greatly increased by adding volume when fixed overhead does not expand. Square footage pricing has proven to be best in relating true costs to the price charged for each job. We have an adjustable price calculator in our catalog that is accurate and efficient if you need help establishing prices.
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