TCF556: Contractor Q&A: “Why The 50% Gross Profit Rule is Right?”

Tom and Dan address the concern of a contractor about the 50% gross profit rule, who argues that 50% gross profit is ripping people off when it comes to home renovations. He claims while 50% gross profit may make sense on a smaller project — like a French door installation — it seems outrageous when doing renovations on a large scale.   In this episode, we talk about…   Understanding how money works in a business 50% gross profit is feasible, and that does not mean you are screwing your customers Selling shouldn't be based on your own budget or your own assumptions about the value. When you make more profit, you can: Provide a better experience to your customers Honor your warranties  Make a callback and not argue with the customer Hire better people Take care of your team, provide them with training, and provide them with a career path   Resources:  Submit your questions to [email protected] with the subject “Podcast” and Tom and Dan will try to answer them on an upcoming show.   Are you stealing money from your family because you aren’t charging enough for your services? Discover what you SHOULD be charging. Download our 50% Gross Profit cheat sheet: https://thecontractorfight.com/50   == Join us in BATTLEGROUND == Everything your contracting business needs in one comprehensive program with three main focus areas: Leadership, Communication, and Numbers. For more info check out: https://TheContractorFight.com/Battleground    == Order your free copy of Tom’s book Winning the Contractor Fight (Just pay to ship) == https://thecontractorfight.com/book    == Grab the Gear == https://gear.thecontractorfight.com/    == Find Us on Social Media == YouTube: https://www.youtube.com/c/TomReber  Instagram: https://thecontractorfight.com/ig  Live Unafraid Swag: https://thecontractorfight.com/unafraid    The Contractor Fight is the ultimate resource for becoming an uncommon contractor! Pick a fight with mediocrity. Live Unafraid.