5 Warning Signs You're Underpricing | ANOH Strategic Group
Why It Happens: You're pricing to stay competitive without calculating whether those prices actually cover your costs plus profit.
Why It Happens: You're estimating based on best-case scenarios instead of real historical data.
You know what you pay employees per hour, add a markup, and call that your "labor rate." But you're not accounting for payroll taxes (7.65%), workers comp, insurance, benefits, PTO, training time, drive time, or non-billable hours.
Example: You pay Joe $25/hour and charge $50/hour, thinking you make $25 profit. But after hidden costs, Joe actually costs you $38-42/hour, and you're only making $8-12/hour.
"Everyone charges $X for this service, so we do too" - but you have no idea if $X covers YOUR specific costs.
Why It Happens: Fear of being "too expensive" drives pricing instead of math.
Why It Happens: Your pricing doesn't include proper owner compensation. You're treating your time as free.
Three Immediate Actions:
1. Calculate your true costs (labor, overhead, materials)
2. Review your last 10 jobs for actual profitability
3. Adjust pricing on new quotes (test 20% higher)
ANOH Strategic Group specializes in helping trade businesses ($250K-$2.5M) uncover hidden profit.
Rapid Financial Diagnostic ($1,800): Complete cost analysis, job profitability review, pricing recommendations, 90-day plan
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Launch Pricing: $1,800 diagnostic (limited time)
Limited capacity: Maximum 12 clients per quarter
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