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The Easiest Way To Increase Profit (Pricing Strategy)

📅 April 3, 2026 ⏱️ 1:00:12 🎤 Jered Williams, Eddie Barkhurst

Chapters

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  • 0:00
    Introduction to Profit Increase
    Jared introduces the topic of the easiest way to increase profit, citing a personal experience of adding a million dollars in profit to his company.
  • 0:56
    Plum Line Answering Service
    Jared promotes Plum Line, a 24-hour answering service for trades that books calls directly into CRMs and charges per booked call.
  • 3:30
    Initial Price Increase Success
    Jared recounts a desperate move to raise prices overnight, leading to a significant profit increase with no customer or employee backlash.
  • 17:12
    The Million Dollar Goal
    Jared shares his personal goal of making a million dollars, achieved through strategic business changes, and then sets a new, more ambitious goal.
  • 18:29
    Efficiency and Gross Margin
    The discussion shifts to the importance of efficiency and gross margin pricing, inspired by Billy Stevens' podcast, and how it uncovered significant material losses.
  • 29:00
    Switching to Margin-Based Pricing
    Jared explains the transition from hourly rate pricing to margin-based pricing, highlighting its impact on labor rates, material markups, and overall profitability.
  • 40:20
    Technician Mindset and Selling
    The hosts delve into the challenges of technician mindset regarding sales, specifically the misconception of 'selling something they don't need'.
  • 55:40
    Implementing Commission Structure
    The episode details the introduction of a commission structure for technicians, incentivizing them to bundle services and increase average ticket size.
  • 1:09:00
    Tying Personal Goals to Finance
    The hosts discuss how to motivate technicians by connecting their personal financial goals, like buying a house, to their sales performance.
  • 1:36:40
    Recap and Coaching Invitation
    Jared provides a recap of the key strategies discussed and invites listeners to join The Wealthy Plumber coaching community for more insights.

Speakers

J
Jered Williams
Host
E
Eddie Barkhurst

Key Takeaways

✦

Raise your prices: If struggling with profitability, a direct price increase can significantly boost your bottom line with minimal impact on sales volume.

✦

Optimize material markup: Ensure your material markups are at least 120-150% to cover costs and contribute to gross margin, as low markups can severely erode profits.

✦

Implement gross margin pricing: Shift your pricing strategy to focus on gross margin percentage, ensuring consistent profitability across all services, not just labor.

✦

Track and improve efficiencies: Monitor billable labor efficiency (aim for 80%+) and material efficiency to identify and plug profit leaks.

✦

Incentivize performance: Introduce a commission structure that rewards technicians for increasing average ticket size and overall revenue, aligning their financial goals with the company's.

✦

Educate technicians on sales value: Help your team understand that offering comprehensive solutions (even if beyond the immediate 'need') provides better service and value to the customer in the long run.

✦

Bundle services for increased average ticket: Train technicians to identify opportunities to bundle multiple services, offering a better deal to the customer while significantly increasing the average ticket per job.

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