How to Boost Profits Without Raising Prices in Your Home Service Business

Introduction:

Tired of working harder but not seeing the profits you deserve? You're not alone.

Many home service business owners feel like they’re spinning their wheels, but there are smart ways to boost profits without charging your customers more. Let’s dive in.

1. Know Your Numbers

Start by understanding your real costs, margins, and average ticket size. Without knowing your numbers, you can’t improve them. Many home service business owners make a mistake of pricing decisions based on the market, and not on their real numbers. Big mistake!

Use a simple profit and loss spreadsheet or software to track your revenue and costs. Ask your bookkeeper or accountant for these reports regularly.

2. Increase Your Average Ticket

Train your techs to offer add-ons or upgrades that bring more value to the customer. For example, offer a maintenance plan or upgraded materials with a clear explanation of the benefits.

This isn't about adding things to add things. Maintain your integrity and offer real value!

We've all seen it...a company offers a $49 service call (or maybe even a FREE service call!), but then tells every customer they need $300-$500 in repairs to offset the cheap service call.

3. Improve Scheduling Efficiency

Tighter schedules = more jobs per day. Use scheduling tools or CRM software to reduce downtime between jobs and group jobs by geography.

There's no bigger drain on profits than having your techs wasting the day with "windshield time."

In my previous life I worked for a satellite TV provider. We did a time study, and then implemented a new scheduling and routing system. The techs hated it at first because they might drive past another tech on the way to an install.

This new system ended up reducing windshield time and saved $25 million PER YEAR!

4. Eliminate Waste

From excess inventory to time wasted on back-and-forth trips, there are hidden profit leaks in your business. Regularly review your process and look for ways to reduce friction and costs.

One of the hardest things for an owner to do is stop, step back, and just watch how things get done.

It is also one of the most enlightening things you can do. I ask every one of my clients to do this. The findings are always quite powerful.

5. Outsource Low-Value Tasks

Focus on high-value activities like sales and leadership. Delegate or outsource admin, bookkeeping, or marketing tasks to free up your time and energy.

One key mistake many owners is make is hiring to grow their business. This sounds like the logical path to growth. I want to encourage you to think differently.

The best business owners—those true entrepreneurs—hire to buy back their time. Some say this sounds selfish.

Yep!

Why did you start your business?

To hire people and stay busy fighting fires, or to build a life with wealth and freedom in it? If it's the former, you don't own a business. You have a job...and a really crappy one at that!!

Summary:

Most home service businesses hang around 10% net profit margins. This is sad and should not be. There are significant profits tied up in your business, and you don't always have to increase prices to discover them.

Today we covered 5 ways to increase net margin without raising prices.

Want to see the power of Profit Acceleration in your business? I have a powerful tool called the Profit Acceleration Simulator that you can access for free and get a 12 month roadmap to growth in your business.

Here's how you can access this amazing tool. And if you schedule a discovery call with me, I will send you a free copy of my book, The Business Growth Blueprint.

Cheers,

Pete Leckemby

Master Your Trade. Scale Your Business. Own Your Future.

Photo credit: Pixabay