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Still Guessing Your Prices? Use This Profit Formula

📅 February 3, 2026 ⏱️ 26:13 🎤 Adam Sylvester, Wilson Betances

Chapters

Click to jump to section

  • 0:00
    Identifying Low Prices
    Adam and Wilson discuss indicators that a business's prices are too low, such as winning every job.
  • 0:00
    Introduction & Guest
    Adam Sylvester introduces the episode's topic of effective pricing and guest Wilson Betances, an electrical contractor.
  • 0:26
    The 30-30-30-10 Rule
    Wilson explains his pricing formula: 30% taxes, 30% overhead, 30% profit, and 10% contingency.
  • 0:50
    Base Employee Cost
    The discussion focuses on calculating prices starting from the employee's hourly cost and adding percentages for various expenses.
  • 0:10
    Pricing Stigmas & Market
    Wilson addresses common stigmas around pricing and how market conditions influence pricing strategies.
  • 0:10
    Jobber for Pricing
    Wilson and Adam share how Jobber helps them accurately cost and price their services, identifying profit margins and leaks.
  • 0:15
    50-30-20 Rule
    Adam introduces his own pricing rule: 50% gross profit, 30% overhead, and 20% net profit.
  • 0:17
    Indicators of Low Prices
    They reiterate that winning most jobs and underpaid employees are strong indicators of prices being too low.
  • 0:21
    Pricing Bigger Jobs
    Wilson explains how understanding cost breakdown allows flexibility to price larger contracts competitively, even removing ad costs if work is guaranteed.
  • 0:24
    Actionable Pricing Tips
    Adam concludes with three immediate actions listeners can take: increase prices by 5%, aim for a 50-60% conversion rate, and multiply employee pay by four for an hourly charge.

Speakers

A
Adam Sylvester
Host
W
Wilson Betances
electrical contractor

Key Takeaways

✦

If you're winning 8-10 out of 10 jobs, your prices are likely too low; aim for a 4-6 range of accepted bids to ensure healthy profitability.

✦

Implement the '30-30-30-10' rule: allocate 30% for taxes, 30% for overhead, 30% for profit, and 10% for contingency to ensure all costs are covered and profit is guaranteed.

✦

Base your pricing on the cost of your employees (labor only), then apply the percentage rules for taxes, overhead, profit, and contingency to determine the final hourly rate.

✦

Use job costing software like Jobber to track job profitability, identify 'leaks' (unexpected costs or time overruns), and ensure you're hitting your desired profit margins.

✦

Don't just compete on price; homeowners and commercial clients buy experience, promptness, and professionalism. Charge for the value and quality of service you provide.

✦

Consider the '50-30-20' rule: 50% gross profit (materials, labor, subs), 30% overhead (rent, fuel, insurance, owner salary), and 20% net profit for business growth and rainy days.

✦

Increase your prices by a small percentage (e.g., 5%) regularly; a 5% price increase can lead to a 25% increase in net profit without significant client pushback.

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