Mike AndesFounder, Augusta Lawn Care and Homeworks · Founder of Homeworks and Augusta Lawn Care

Too Many Customers! 😮 #shorts

6 Oct 2021 · 0 min

Watch on YouTube

0:27

Short YouTube clip (Mike Andes) advising service businesses on pricing: he reports a close rate of about 8 out of 10 jobs (≈80%) and states that labor typically comprises about 40–50% of the total invoice. Based on those two facts he advises raising prices because a high labor-to-invoice ratio (40–50%) and a high close rate (80%) are both signals to increase pricing.

Questions this video answers

About 8 out of 10 jobs (≈80%).

Approximately 40% to 50% of the total invoice.

We get about eight out of 10 jobs when we go out for quotes. Does that mean we are too cheap or just a good service? Typically labor is 50 to 40% of total invoice. Yes, you should raise your prices. If your total labor is costing you 40 to 50% of total invoiced, you need to raise your prices and even further compounds my answer by saying that 8 out of 10 80% close ratio I'd be telling you again to raise your prices. So you got two green lights there because of your close ratio and your labor expense ratio being too high.