Mike Andes tells home service owners to set a customer limit and stick to it instead of constantly expanding. A 15% price increase could double your profits. Endless growth mostly enriches equipment makers and marketing companies, not you.
15%
I believe the vast majority of home service business owners that go out of business is simply because they never determined and defined what the finish line was for them to stop growing the business and start raising prices. So what I want you to do before you even get the spring rush is determine, okay, how many customers will I stop growing at, how many trucks will I stop growing at, how many employees will I stop growing at? And when I hit those numbers, I'm going to stop growing and instead raise prices. If we're on this constant treadmill of just keep buying more trucks, keep hiring more people, keep getting more customers, we don't actually ever raise our prices and get profitable because if I can raise my prices by 15%, I could potentially double my profits. But most people never even get to raising their prices because they just keep buying more trucks, hiring more people, and getting more equipment. So who gets rich? Equipment manufacturers and marketing companies, because that's what fuels that massive amounts of growth.
