My top recommendation for the contractor just starting out and wondering just how much they need to charge to survive and make a living. This excellent book explains in very simple "jargon-less" language the mechanic and principles of the Capacity Based Markup methodolgy I keep talking about and that is described in David Gerstels excellent book Running a Successful Construction Company.

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Product Details

• Amazon Sales Rank: #476417 in Books
• Published on: 1999-05
• Original language: English
• Number of items: 1
• Binding: Paperback
• 97 pages

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Customer Reviews

Five stars isn't enough For this book
I've been a self emplyed remodeling contractor for 10 years. I've read lots of business books. This one is, in my humble opinion, one of the best.

In "How Much Should I Charge" Ellen Rohr explains the folly of setting a price for your professional services based on the going rate (what others are charging for similar services).

Quoting business sage Frank Blau, she makes the point that being "Busy is easy. Profitability is difficult. And there is only one way to be profitable. Charge more for your services than it costs to create them."

Yeah, it's a basic point, but do you know what YOUR break-even cost per hour is? I didn't either, and that's a common problem in the service trades. If you don't know your costs of being in business, how can you determine a realistic price for your services? A price that allows you to get ahead, not just tread water.

In this book Ellen tells you how to create a selling price based on real numbers. She explains things like overhead and budgets and profit and billable hours and all of that. And the really commendable thing about it is that she manages to present all of this information in an entertaining, easy-to-read maner. There is a lot of rock solid common sense and fundamental business wisdom here and it's not boring or hard to follow like in so many other business books.

You can't read this book without being challenged to reevaluate the approach you take to pricing your services. For most service professionals, that's a reevaluation that is sorely needed.

In short, Ellen's excellent book tells you how to take control of your business; to get in the drivers seat and take it where you want it to go based on real costs of doing business, your own special talents as a service professional, and your own personal goals and dreams in life.

I'd like to share one particularly poignant passage from the book. It is profound. It is true. It's something I can relate to.

"Add up all the real costs of running a business. And charge a selling price that will cover all those costs plus generate a solid double-digit profit for the company. Don't sacrifice everything for the sake of keeping your prices low. Because, when you compromise yourself and your family's well being for the sake of your customer's wallet, something nasty happens. You start treating your customers like dirt.

When you make a great living doing the wonderful work that you do, somethiing marvelous happens; you treat your customers like gold! You thank them for providing you with such a nice living. You go out of your way to do nice things for them."

Some people will find what Ellen says about pricing to be provocative. Some will argue that her system can't work in their business or their area, or whatever. These are the people who equate "busy" with success,but who, despite their busyness never seem to get ahead financially like they would like (and should).

The fact is, Ellen's approach can and does work. I'll vouch for it. And I know there are successful service professionals all over the nation who will vouch for it. To succeed in business without a firm understanding and application of Ellen's pricing principles would be sheer luck.

I'll close with another quote from the book:

"Until YOU change, nothing will change for you"

Get the book. You'll be glad you did.

Funny reading, easy to understand, and super results!
I have been reading several books on the science/art of pricing products and services. I actually ordered this book by mistake. (Sorry Ellen!) The cover made me think it was too goofy, to "entry level" for me. After all, I have been in the consulting business for years. But, I could not put the book down. It took me less than a day to get through the book and the exercises Ms. Rohr included. The manner in which this book is written, a story of a lady interested in starting a business and talking with her business savvy friend, is fantastic. By the time I was done my jaw was on the floor. I was astonished to see the true cost of running my business laid out before me. Figuring out my "break-even point" was a real eye opener and has drastically affected the rates I now charge for my services. The value of this book to anyone struggling to effectively price their goods or services will far outway the cost. The information Ms. Rohr provides can be applied to any industry / business.

How much money do you want to make?
If you're new into business or a veteran, this book will answer the question of pricing. So many of us work hard at the wrong price. A clear and understandable method for charging the right price. Thanks!!