Are You Accidentally Paying Your Customers to Work for Them?

You ever finish a big job, sit down to count your profits, and realize… there’s barely anything left?  

You did all the work. You paid your crew, covered materials, fueled up the trucks, and spent weeks making sure the project was done right. But after all that? Your profit margin is so small it might as well be a rounding error.  

And worst of all – you were the one who set the price!  

If this sounds familiar, don’t worry. You’re not alone. Many business owners accidentally underprice their work, which means they’re basically paying customers to let them work. Let’s fix that.  

The Problem: You’re Underpricing (and It’s Killing Your Profits)  

When you set your prices too low, your business turns into a charity for your customers – except nobody’s donating money to you.  

Here’s what happens when your prices aren’t covering costs:  

• You work more but make less.  

• You can’t afford to pay yourself properly.  

• You start resenting customers who are getting a great deal – at your expense.  

And let’s be real: customers are never going to say, “Hey, you’re not charging enough, let me pay you more.” They’ll happily take the deal and move on.  

Why Do Business Owners Underprice?  

There are three big reasons service businesses like yours struggle with pricing:  

1. Fear of Losing Customers  

• You think, "If I charge more, customers will leave!"  

• The truth? The right customers won’t. People pay for quality, reliability, and expertise.  

2. Not Accounting for ALL Costs  

• You might price a job based on materials and labor, but forget about overhead—insurance, truck maintenance, office expenses, taxes.  

• If you don’t build those costs into your pricing, you’re eating them yourself.  

3. Competing on Price Instead of Value  

• Trying to be “the cheapest” in your industry is a race to the bottom – and there’s no profit at the bottom.  

• Instead, focus on what makes you better (faster, more reliable, higher quality) and charge accordingly.  

The Solution: Your Fractional CFO, AKA Your Pricing Architect  

Your Fractional CFO (Chief Financial Officer) is your secret weapon for making sure your prices actually make you money. Here’s how they fix pricing problems:  

1. Finding Out What It REALLY Costs to Do a Job  

Your CFO will break down every cost that goes into a job, including:  

✔ Direct costs (materials, labor, subcontractors)  

✔ Hidden costs (gas, equipment wear and tear, licensing fees)  

✔ Overhead (insurance, office rent, admin salaries, marketing)  

With real numbers, they’ll show you exactly how much you need to charge just to break even – and then how much to charge to actually make a profit.  

2. Implementing a Profit-First Pricing Strategy  

Instead of pricing based on what you think people will pay, your CFO will help set rates based on:  

• A cost-plus model (your costs + a profitable markup)  

• Value-based pricing (charging for the quality and reliability you bring to the table)  

• A margin-first approach, where you make sure you’re actually making money on each job  

3. Raising Prices Without Losing Customers  

Terrified that raising prices will scare off customers? Your CFO helps you strategically adjust prices so you:  

🔹 Keep existing clients happy by communicating the value they’re getting  

🔹 Weed out bargain hunters who drain your time and profits  

🔹 Attract higher-quality clients who respect your expertise (and pay what you’re worth)  

4. Monitoring Job Profitability (So You Stop Losing Money in the Dark)  

Your CFO will set up job costing systems so you can see exactly:  

• Which jobs are making the most money  

• Which services are the most profitable (and which might need to go)  

• Where you might be underestimating costs  

This means no more guessing – just clear, data-driven pricing that puts money in your pocket.  

How to Work With Your Fractional CFO  

To get the most out of your CFO’s pricing expertise:  

• Be honest about your numbers. If you’re underpricing, it’s okay – your CFO is here to fix it, not judge you.  

• Trust the math. Your CFO will show you the numbers. If they say you need to raise prices, believe them.  

• Make changes confidently. If you know your price is right, you can stand firm when clients push back.  

Final Thought: You Deserve to Get Paid What You’re Worth  

If you’re constantly working hard but barely making money, your pricing – not your work ethic – is the problem.  

You’re not in business to “just get by.” You’re in business to make a profit and build something that lasts.  

And with the help of a Fractional CFO, you can set your prices right, increase profits, and finally get paid what you deserve.  

Because at the end of the day, you’re not running a charity. You’re running a business. 🚀

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