Kenny Chapman and Chris Crew discuss why pricing is one of the most powerful—and misunderstood—drivers of profitability in home service businesses.
They break down common pricing mistakes, the importance of price integrity, and why efficiency, experience, and knowing your true costs all play a role in sustainable success. Tune in to learn how to shift your pricing mindset, stop undercharging, and build a pricing model that actually works.
- Kenny starts the conversation by explaining why pricing is the foundation to profitability.
- Chris reveals that pricing is not set-it-and-forget-it. Like gas prices, it moves constantly, and businesses that fail to adjust rarely succeed.
- Even with advanced software and real-time data, most business owners still struggle with pricing. Kenny and Chris dig into why the home service space still struggles to price correctly.
- Chris shares a simple truth: if you don't react to rising costs, it eats directly into your margins.
- Kenny urges a mindset shift from service provider to retailer. Retailers adjust pricing based on cost, supply, and demand—and so should you.
- According to Chris, smart pricing means you don't need to be constantly selling. Get your pricing right, and you relieve the pressure to chase endless volume.
- When you price based on your fixed and variable costs, you build a strategy that lasts. Chris breaks down how to price from your numbers, not your emotions.
- Kenny highlights that while everyone has a pricing strategy, the math is simple: you must charge more than it costs to operate daily. Anything less is a loss.
- Kenny shares how he designs pricing to stay profitable and still appear affordable. It's not about being the cheapest, it's about looking like the best value.
- Chris explains that in every business, you're selling time and materials. But when you package that with a powerful customer experience, you can (and should) charge more.
- Chris warns that if your customer experience is weak, your customer will be forced to judge you on price, and that's never a good thing.
- Kenny believes the easiest way to raise prices is to create an unforgettable experience. Memorable service buys you higher pricing power.
- Raising prices unnecessarily isn't sustainable. According to Kenny, customers today are spoiled for choice. The way to achieve long-term profit is to build value and trust.
- Chris and Kenny cover how inefficiency raises your cost of operation and therefore your prices. When you're efficient, you're more profitable and more competitive.
- Chris doesn't look at competitors when setting prices. He builds pricing around his own model and goals, not market noise.
- Chris talks about price integrity and why it's important in the modern business landscape.
- The foundation of pricing integrity: customers should pay only for what they're responsible for—nothing more, nothing less.
Mentioned in This Episode:
HomeServiceBusinessSuccessShow.com/s2e12
The Blue Collar Success Group
