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S3 EP14 Still Charging $120/hr? Here’s Why That Ends in 2026.

⏱️ 32:28 🎤 Joseph Lucanie, Clay Neumeyer
AUDIO EPISODE
S3 EP14 Still Charging $120/hr? Here’s Why That Ends in 2026.
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Chapters

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  • 0:00
    The Profitability Problem
    Joseph discusses how many electricians don't know what to charge to be profitable, leading to undercharging and lack of confidence.
  • 0:12
    Accountant Limitations
    The hosts share experiences about accountants not being proactive in helping businesses increase profitability and tax savings.
  • 0:18
    Pricing Tools and Confidence
    Clay explains how their pricing tool helps electricians understand their expenses, calculate accurate rates, and gain confidence in their pricing.
  • 0:21
    Calculating Billable Hours
    They break down how to calculate billable hours for a service technician, considering a 50% efficiency rate for service work.
  • 0:26
    Gross Profit Targets
    Clay outlines target percentages for revenue, cost of goods sold, and gross profit for a service company (50-60% gross profit).
  • 0:30
    Increase Prices for Profit
    The first method to increase gross profit is to increase prices, which directly impacts the bottom line without additional costs.
  • 0:35
    Increase Sales per Call
    The second method involves increasing sales per service call by addressing emotional concerns and offering more solutions.
  • 0:38
    Reduce Cost of Goods Sold
    The third method to improve profitability is to reduce the cost of goods sold through efficiency, reducing travel, and optimized inventory.
  • 0:44
    Hyper-Local Hero Strategy
    The hosts discuss the benefits of becoming a 'hyper-local hero' to reduce travel costs and increase gross profit margins.

Speakers

J
Joseph Lucanie
Host
C
Clay Neumeyer
Host

Key Takeaways

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Utilize pricing tools and calculators to accurately determine your profitable hourly rate, boosting confidence in your offers.

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Aim for a gross profit margin of 50-60% by carefully managing your revenue and cost of goods sold.

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Increase your prices. If you're already profitable, every price increase directly contributes to your bottom line.

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Focus on increasing sales per call by understanding and addressing customers' emotional needs, not just technical problems.

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Reduce your cost of goods sold by optimizing travel routes, performing ride-alongs to improve van stocking, and focusing on hyper-local service areas.

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Engage with your accountant regularly (quarterly or semi-annually) to proactively manage finances, rather than just for tax compliance.

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