A short advisory segment from Mike Andes explaining how to effectively raise perceived prices without increasing customer-facing rates by using internal "budget hours" and fixed crew allocations. He gives numeric examples (e.g., dividing a job price by an internal hourly target) so owners can guarantee crew compensation while letting customers see stable prices.
$200
4 budget hours
Without raising your rates. You could raise your rates. What I mean by that is. Okay, last time it was $400 for Mr. Bill. 424 60, 390. Okay, we're just gonna pay. It's 400 for his property cleanup. I'm divide that down by a hundred dollars an hour. Yeah. Guys, you have four budget hours on the schedule now. You give them a target to beat, and all of a sudden it will get done in three hours because you know you can do it that way. The reason that you can is because you have the compensation and the information of an owner. I think from a customer perspective, they don't need to know anything. Their prices are basically going to stay the same. You're just now gonna have budget hours in the background. So, like, if this is a $600 cleanup, I know $200 is going to my crew, period. Okay? Doesn't matter if it takes them 10 hours or takes them four hours, okay?
