I’ve been listening to stories about getting the courage to charge enough. Be it labor rate or proper margins on parts, including effective labor rate.
If you did an inventory of what our investment has been over the last 10 years, you might just be astonished to see what your investment is. From tools, equipment, and facility. Also, you can put a value for every hour worked growing and building your business (a priceless number, no doubt).
Also, the investment you make in your people and what you invest in them. Equipping their bays, tablets, cell phones, computers, subscriptions, and list list goes on.
What about the investment in your learning curve? What did you pay, and what did you learn from comebacks? This is an investment that brings us no value, yet it makes us smarter if you learn from it and attempt not to repeat it. Did you journal what you learned so you can prevent costly repeats?
So as you ‘brainstorm’ your investment, think of everything you’ve done, from a money investment to all the time you invested because you are building your dream, your vision.
When setting your labor rate from the ground up, working with a coach, and using a spreadsheet as you consider your net profit and production, don’t be afraid to charge the number you come up with. Have no fear and find the courage. The customers you lose aren’t your customers.
If you see your six or seven-figure investment from the exercise above, you will know that what you need to charge must cover your costs in order to make a profit so you can continue to invest in equipment, training, tools, and most importantly, your people. You want to bring value to your customers, and what better way than to be profitable and provide a great living to yourself and your people.
It is not all about you it is about your work family, and they are a big part of your investment.