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Get Your Sales Leak Score: https://thecontractorfight.com/leak
You just found out that "small" discount is costing you way more than 10%. In this episode, Tom breaks down the actual math behind discounting a job, and why giving away 10% off your price can wipe out 20% (or more) of your profit. If you've ever caved on price because a customer pushed back, this one's for you.
What you'll learn:
- Why your costs don't move when your price does
- The real math behind a "harmless" 10% discount
- How much additional work you have to sell just to break even on a discount
- Why the math gets uglier the thinner your margins already are
- The difference between a strategic discount and a fear-based one
Timestamps
- 00:00 – The problem: contractors negotiating against themselves the moment a customer pushes back
- 00:40 – The example: a $10K job at 50% gross margin
- 01:00 – What actually happens when you cave and knock off 10%
- 01:40 – Your costs don't drop just because your price did
- 02:00 – The real hit: a 10% price discount = a 20% gross profit hit
- 02:20 – Mid-show break: the Sales Leak Scorecard — find out where your sales process is actually breaking down
- 03:20 – Back to the numbers: what it costs to earn that profit back
- 03:40 – How much additional revenue you have to go sell just to replace what you gave away
- 04:20 – The math gets worse at lower margins (30% example)
- 05:20 – When discounting is okay — legit strategic reasons vs. reacting out of fear
- 06:00 – The close: know your numbers, hold your price, protect your profit
Get Your Sales Leak Score: https://thecontractorfight.com/leak
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