Short excerpt from a YouTube conversation (recorded Apr 11, 2024) led by Mike Andes discussing a simple pricing rule: keep base pay to the team under 25% of your hourly rate. Other speakers describe underbidding and competitive market pressure, noting regrets about charging too little for long jobs.
Less than 25%.
About $18 per hour.
When you take your hourly rate, you want it to be less than 25% of that to be going towards base pay to the team. So if you're doing 75, we really need to be around 18 bucks an hour to make that make sense.
I feel like I definitely underbid some of the work that I do. It's also the market that I'm in is pretty tough. We all fight for every job we get.
Sometimes I feel like we price things a little low. Definitely been a couple ones where we go to and we're like, oh, we should have charged more. We're going to be here the whole day. So I feel like that kind of hurts sometimes for him.
