It’s tempting — especially in slow seasons — to drop your price just to win the job. You tell yourself: “We’ll make it up in volume” or “At least we’re keeping the crew busy.” But that’s a dangerous game.

Every time you cut price just to land work, you train your clients to expect a deal. You also reduce your gross profit margin, which means you have to take on even more jobs to hit the same financial target — and you risk burning out your team in the process.

Worse, cheap jobs crowd out better-paying ones. Your calendar fills with low-margin work, leaving no room for the profitable projects that could actually move the needle.

Real World Mistake & Lesson:

A drywall contractor underbid a school renovation job just to beat a competitor. They got the job — but barely broke even after material delays and labor overruns. Meanwhile, they had to turn down a high-margin luxury condo project that came in a week later. One decision cost them $30,000 in missed profit. We helped them refine their bid strategy, focusing on minimum profit targets, and they never looked back.

 Pick up your free copy of my new book, “The 7 Minute Conversation-How to Hear the Story Your Small Business Financial Statements Are Telling You-CONTRACTOR EDITION”.  Go to www.7MinuteConversationBook.com

Ready to find out where your cash and profits are really going? Book your free 15-minute Profit and Cash Flow Call with me. No pressure. Just real clarity. I’ll help you see where your money’s hiding — and what to do about it. Schedule at www.CashFlowCallWithLarry.com