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How to Standardize Pricing When Every Job Is Different | Q&A

⏱️ 1:32:29 🎀 Mike Andes, Ian, Eric, Marco, Justin, Aaron, Christian, Malia, Kevin
AUDIO EPISODE
How to Standardize Pricing When Every Job Is Different | Q&A
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Chapters

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  • 0:00
    Pay for Performance
    Mike introduces the topics to be covered, including pay for performance, getting off the truck, and managing multiple locations.
  • 0:54
    Standardizing Variable Pricing
    Ian asks for advice on standardizing pricing and estimation for tree work, which has high variability, to implement a consistent pay-for-performance system.
  • 4:47
    Marketing for New Businesses
    Eric, a new business owner, seeks recommendations for organic lead generation and deciding when to start Google or Facebook ads, with Mike recommending continued focus on direct response marketing like door hangers.
  • 11:58
    GM vs. Crew Leader Roles
    Marco asks about structuring a growing lawn care company with three divisions and whether to hire a single General Manager or multiple working GMs for each division, leading to a discussion on titling and incentive structures.
  • 20:22
    Admin Role and Growth Decisions
    Justin discusses his part-time admin's desire for full-time work and his dilemma of growing the business versus maintaining current profitability to achieve personal financial goals.
  • 33:06
    Challenges of Multiple Locations
    Aaron, operating two small locations, asks for advice on bonus programs for his salaried technician and the viability of his current multi-location strategy.
  • 41:57
    Growth vs. Profit & Capacity
    Christian and Malia discuss their business growth plans, including adding a second crew and raising prices, and Mike advises on understanding capacity through budget hours before making major changes.
  • 50:20
    Prioritizing Service Areas
    Malia asks for advice on managing routes and service area density in a geographically diverse area, with Mike suggesting the use of Google Earth Pro for mapping.
  • 54:27
    Price Increases at Capacity
    Eric returns to ask about the earliest time to raise prices on customers, even new ones, after hitting capacity, emphasizing the strategic decision to make room for new clients.
  • 56:45
    Distributable Cash in Growth Mode
    Ian asks how to manage distributable cash when transitioning from profit mode to growth mode, with Mike recommending maintaining the cash threshold based on risk tolerance rather than growth stage.
  • 1:01:14
    Snow Removal Business Decisions
    Kevin seeks advice on selling his commercial snow removal division to focus on residential, discussing equipment valuation, employee pay structures, and auto-renew contracts.
  • 1:20:00
    P4P for Owners & Budget Hours
    Christian and Malia ask if pay-for-performance works for owners and how to implement budget hours before expanding with more employees, with Mike stressing the importance of nailing budget hours first.

Speakers

M
Mike Andes
Host
I
Ian
E
Eric
M
Marco
J
Justin
A
Aaron
C
Christian
M
Malia
K
Kevin

Key Takeaways

✦

Standardize pricing and estimation by eliminating services with extreme variability or clearly communicating potential fluctuations to employees.

✦

For new businesses, prioritize direct response marketing like door hangers before investing heavily in online ads, and refine systems for scalability.

✦

Clearly define roles (e.g., 'crew leader' vs. 'GM') and incentivize efficiency based on controllable factors like budget hours, rather than complex profit-sharing models.

✦

Maintain a clear understanding of business capacity using budget hours to strategically decide between raising prices for profit or expanding for growth.

✦

Owners should offload administrative tasks to staff to free up time for higher-leverage activities like sales, even if it requires training.

✦

Consolidate multiple small locations into one until reaching significant revenue (e.g., $500,000+) to improve efficiency, management, and reduce key-man risk.

✦

Prioritize critical business changes (e.g., budget hours, systems, hiring) and avoid introducing too many new initiatives simultaneously to ensure successful implementation.

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