What Your Books Can Tell You About Pricing

Most owners set prices by looking at competitors. Your own numbers are a better guide — if the books are organized to show them.

Separate revenue by service or product line

A single 'Sales' account hides everything useful. Track income streams separately and the profitable ones become obvious within a quarter.

Know your true cost to deliver

Include labor, materials, subcontractors, and the software and fees tied to delivery. Anything you spend only when a job happens belongs here.

Watch gross margin, not just revenue

Growing revenue with a shrinking margin is a treadmill. Margin by line item tells you what to raise, what to drop, and what to sell more of.

Revisit prices on a schedule

Costs move every year. Reviewing prices annually, with real numbers in hand, is far easier than an emergency increase after a bad quarter.