Mike Andes explains how to raise prices based on real signals: track your estimates per day and acceptance rates to measure actual demand. If you're getting five estimates daily with a third converting, that's one job a day. Don't promise short lead times when you're already booked six months out.
Why have you not raised prices? This is like screaming to raise prices. If you're getting like, let's call it five estimates a day and you're getting a third of them accepted means a one new job a day, approximately getting accepted.
Oh, yeah.
Okay, great level.
I don't know that my $70,000 job could be 100 grand, you know? I don't know. I don't know. But you're right. I mean, but then what's that based off of? I don't even know. I don't even know what my number is. I think I'm charging this.
But the real thing is you don't know if you're six months booked out. You think you are based on a couple of projects in your brain. Yeah, we'll actually know.
That's right.
If you stop leav leads today for the next six months, we should be able to project our revenue if you're six months booked out. And if you're going to tell someone eight weeks and then push them off A, bad customer experience, B, you're going to overload your crew. And now all of a sudden, like, we got to get this job done because this customer's freaking out. And it's really just a scheduling problem that you put a job on that should have been six months from now, and now you told them two months. So you're setting up your ops for failure. The handoff from sales to operations falls apart when the salesperson over over commits. And you can't really commit or not based upon the fact that you don't know if you're actually fully booked right.
