515: What Every Trade Business Owner Should Know About Raising Prices

<h1 style="text-align: center;"><span style= "color: #0000ff;"><strong>This Podcast Is Episode Number 515, And It's About What Every Trade Business Owner Should Know About Raising Prices</strong></span></h1> <p>Raising prices can be a sore subject. Many construction business owners like you assume doing so will spell the end of your competitiveness. But by not raising prices, you're simply letting inflation and your suppliers' maintenance of your margins quietly eat away at profitability. The bottom line is that costs will always rise long-term - at least with inflation.<br /> <br /> That means you have to pass on the costs to your customers or consume those costs yourself to the point where one day, you'll have to either suddenly raise prices or accept the eventual failure of your business.</p> <p><br /> The worst thing you can do is avoid measuring your costs by sticking your head in the sand. Cost rises will catch up with you eventually, so take action to maintain your margins.</p> <h4 style="font-weight: bold;"><span style= "color: #0600ff;">Analyze and reduce your costs</span></h4> <p><span data-preserver-spaces="true">Regularly check the accuracy of the prices you use in your forecasts and break-even calculations. If you're using outdated costs, your predictions could be dangerously off course from the actual performance of your business.</span></p> <p><span data-preserver-spaces="true">Ideally, you should have your figures analyzed by a professional accountant with experience in the construction industry - and even then, you should remain directly involved to maintain an understanding of your books.</span></p> <p><span data-preserver-spaces="true">But if that's impossible and you have to make your own costs and margin analysis, try using the following tips to help you resolve any profit issues.</span></p> <ul> <li><span data-preserver-spaces="true">Analyze costs and profits on an individual product and service level first before looking at the business as a whole. You may miss critical financial details if