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Level10 Contractor Daily

2388 5 Ways To Get Net Profits to 15% FINAL

πŸ“… March 23, 2026 ⏱️ 25:51 🎀 Rich Harshaw

Chapters

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  • 0:00
    You have a math problem, not a lead problem
  • 1:39
    What a 10% business really looks like
  • 2:43
    #1 Raise your prices (the side-by-side math)
  • 4:56
    Your calculator is your best marketing tool
  • 6:33
    #2 Push for higher-end work
  • 7:37
    #3 Cut out crap expenses (the dumpster story)
  • 10:21
    Auditing expenses quarterly
  • 11:26
    #4 Engineer repeat & referral
  • 13:03
    Foundation, engine (brand ambassador), amplifier
  • 15:44
    Constant contact & top-of-mind awareness
  • 17:54
    #5 Farming: known before you're needed
  • 22:16
    Bonus #6: Financing as price support
  • 24:57
    Recap of the six levers

Speakers

R
Rich Harshaw
Host, Level10 Contractor Daily

Key Takeaways

✦

You don't have a lead problem, you have a math problem: raising a $10,000 job to $11,200 while nudging costs up modestly turns a 10% net into 15% β€” an extra $700/job that at 100 jobs a month is $840,000 more per year.

✦

Raise your prices first (your most important marketing tool is your calculator); do it gradually over one or two years and reinvest some of the gain into 'awesomeness' and more marketing at-bats.

✦

Push for higher-end work with better margin β€” fiberglass over vinyl windows, James Hardie siding, $250k decks β€” not charging more for the same cheap job, but going after customers who want and will pay for quality.

✦

Ruthlessly cut crap expenses quarterly: one $50M client paid $10k/month for dumpster hauling that cost $500 to do themselves β€” $114k/year, and at a 10x earnings multiple that's $1M of company valuation.

✦

Engineer repeat and referral (usually under 5%, should be 10-20%) via a three-part system: the foundation (a great job experience), the engine (a brand ambassador program), and the amplifier (constant contact by mail/email/text).

✦

Invest in farming β€” TV, radio, OTT, SEO, organic/branding social β€” which builds familiarity so you're known before you're needed; it rewards commitment not impatience and makes all your direct-response convert better.

✦

Bonus lever, financing: it's a price-support system, not an affordability tool β€” raise prices to cover the cost, and it reliably lifts average sale and close rates for a triple win.

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