The Easiest Way To Increase Profit (Pricing Strategy)

📅 April 3, 2026 ⏱️ 1:00:12 🎤 Jered Williams, Eddie Barkhurst

Chapters

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0:00

Introduction to Profit Increase

Jared introduces the topic of the easiest way to increase profit, citing a personal experience of adding a million dollars in profit to his company.
0:56

Plum Line Answering Service

Jared promotes Plum Line, a 24-hour answering service for trades that books calls directly into CRMs and charges per booked call.
3:30

Initial Price Increase Success

Jared recounts a desperate move to raise prices overnight, leading to a significant profit increase with no customer or employee backlash.
17:12

The Million Dollar Goal

Jared shares his personal goal of making a million dollars, achieved through strategic business changes, and then sets a new, more ambitious goal.
18:29

Efficiency and Gross Margin

The discussion shifts to the importance of efficiency and gross margin pricing, inspired by Billy Stevens' podcast, and how it uncovered significant material losses.
29:00

Switching to Margin-Based Pricing

Jared explains the transition from hourly rate pricing to margin-based pricing, highlighting its impact on labor rates, material markups, and overall profitability.
40:20

Technician Mindset and Selling

The hosts delve into the challenges of technician mindset regarding sales, specifically the misconception of 'selling something they don't need'.
55:40

Implementing Commission Structure

The episode details the introduction of a commission structure for technicians, incentivizing them to bundle services and increase average ticket size.
1:09:00

Tying Personal Goals to Finance

The hosts discuss how to motivate technicians by connecting their personal financial goals, like buying a house, to their sales performance.
1:36:40

Recap and Coaching Invitation

Jared provides a recap of the key strategies discussed and invites listeners to join The Wealthy Plumber coaching community for more insights.

Speakers

Jered Williams

Host

Eddie Barkhurst

Key Takeaways

✦

Raise your prices: If struggling with profitability, a direct price increase can significantly boost your bottom line with minimal impact on sales volume.

✦

Optimize material markup: Ensure your material markups are at least 120-150% to cover costs and contribute to gross margin, as low markups can severely erode profits.

✦

Implement gross margin pricing: Shift your pricing strategy to focus on gross margin percentage, ensuring consistent profitability across all services, not just labor.

✦

Track and improve efficiencies: Monitor billable labor efficiency (aim for 80%+) and material efficiency to identify and plug profit leaks.

✦

Incentivize performance: Introduce a commission structure that rewards technicians for increasing average ticket size and overall revenue, aligning their financial goals with the company's.

✦

Educate technicians on sales value: Help your team understand that offering comprehensive solutions (even if beyond the immediate 'need') provides better service and value to the customer in the long run.

✦

Bundle services for increased average ticket: Train technicians to identify opportunities to bundle multiple services, offering a better deal to the customer while significantly increasing the average ticket per job.

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