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The #1 Mistake Contractors Make When Booked Out

⏱️ 11:35 🎀 Mike Andes
AUDIO EPISODE
The #1 Mistake Contractors Make When Booked Out
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Chapters

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  • 0:00
    Capacity and Pricing Strategy
    Mike explains that being at capacity means serving the maximum number of customers without additional resources, and how to strategically raise prices in this situation.
  • 1:11
    Profit Mode vs. Growth Mode
    The discussion distinguishes between profit mode (raising prices at capacity) and growth mode (expanding capacity by adding resources like more trucks).
  • 1:43
    Website Review: Instant Quotes
    Mike reviews a lawn care website, suggesting improvements like asking for a physical address before an email for instant quotes and clarifying wording for customers.
  • 3:16
    Website Review: SEO & Structure
    He further advises on website structure, recommending separate pages for each service to improve SEO and the benefits of a .com domain over .net.
  • 4:02
    Mid-Season Price Increases
    Mike addresses how to handle mid-season price increases, emphasizing the importance of collecting customer contact information like email and phone numbers.
  • 5:05
    Strategic Customer Loss
    The host suggests that when truly over capacity, contractors should raise prices enough to lose some customers, as these are often the least profitable or most problematic.
  • 5:48
    Minimum Price Increase Percentage
    Mike recommends a minimum 15% price increase, stating that smaller increases often lead to regret as few customers are lost, missing an opportunity for higher profit margins.

Speakers

M
Mike Andes
Host

Key Takeaways

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When at capacity, strategically raise your prices until your close ratio decreases to merely replace customer churn, optimizing for profit without needing new resources.

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If consistently beating budget hours, increase your internal hourly rate (while keeping customer prices stable) to make budget hours more accurate for scheduling and resource allocation.

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For online instant quote forms, prioritize asking for information truly necessary for the quote (e.g., address for lawn care) before sensitive contact details like email to increase conversion rates.

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Structure your website with individual pages for each service (e.g., /mowing, /shrubtrimming) instead of a single 'services' page to significantly improve search engine optimization (SEO) and keyword ranking.

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Always collect customer email and phone numbers; leverage text messages for communication as they have a significantly higher open and response rate than emails, improving efficiency and payment times.

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When facing overcapacity, implement a price increase of at least 15%, as smaller increases often don't shed enough unprofitable customers and lead to missed profit opportunities.

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Consider a phased price increase by starting with a subset of clients to gauge the impact before rolling it out to your entire customer base, especially if concerned about customer retention.

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