The 5 Profit Leaks Draining Your Home Service Business—And How to Fix Them Fast

Intro: The Problem You Can’t See

You might be selling jobs. You might even have good revenue.

But if the bank account still feels tight, you’re probably bleeding money somewhere.

The truth is, most home service businesses aren’t struggling with sales—they’re struggling with profit leaks.

Money should be there, but it’s slipping through the cracks.

Let’s plug those holes. Keep reading for 5 common profit leaks and how you can fix them.

1. Underpricing Your Work

Too many owners are afraid to charge what they’re worth.

• You’re basing pricing on “what the market will bear” instead of actual cost + margin

• You’re not accounting for overhead, labor burden, or the real cost of doing business

• You’re eating materials, change orders, and “little extras” to keep customers happy

Fix it:

Price for profit, not just for the sale.

Do the math. Know your margins. And remember—cheap prices attract cheap customers.

In every industry and market, there is someone charging way more than you and still getting business. Customers shop on value before price. Even the ones who say they buy on price alone.

2. Missed Upsell Opportunities

Your techs are in front of customers every day, but how often are they trained to offer:

• Maintenance plans

• Warranty upgrades

• Add-on services

• Financing options?

Every missed upsell is money left on the table.

Fix it:

Create a simple upsell system. Train your team to identify and offer value—not just do the job. Incentivize success.

3. Wasted Time & Poor Scheduling

Downtime between jobs. Techs showing up unprepared. Last-minute reschedules.

Time is your most valuable (and expensive) resource.

Unbilled labor comes right off the bottom line.

Fix it:

Use job planning tools, daily dispatch meetings, and route optimization.

Create prep checklists so jobs are done right the first time.

Every minute saved is margin gained.

4. Rework and Callbacks

Poor quality = wasted labor and damaged trust.

• Are your guys rushing to finish jobs?

• Are customers calling back with problems?

• Are you fixing the same issues twice?

Fix it:

Implement quality checks. Slow down to speed up.

Train for craftsmanship, and document your install or service standards.

Reputation is expensive to repair.

5. Not Knowing Your Numbers

You can’t improve what you don’t track. Data and tracking may sound boring. Or maybe you are the owner who says "I go with my gut."

One of my mentors says GUT stands for "Gave Up Thinking." Let the data confirm your hunch.

If you don’t know you:

• Profit per job

• Closing rate

• Average ticket

• True overhead…

…then you’re guessing. And guessing kills growth.

Fix it:

Track the key metrics that move the needle. Review them weekly. Use tools (like our Profit Acceleration Software) to uncover opportunities and make smarter decisions.

Final Thought:

You don’t need more jobs. You need more profit from the jobs you already have. Then, when you get more jobs, you are efficient and highly profitable!

Plug the leaks. Dial in your systems. And start keeping more of what you earn.

Want help finding the hidden money in your business?

Click here to schedule a free Profit Acceleration Review—we’ll find it together.