Ep 12 - How to Set Your Billable Labor Rate (and Actually Make a Profit)
Manage episode 516322407 series 3695412
In this episode of Clerics of Marketing, Adam and Brian tackle one of the most misunderstood (and most important) parts of running a home service business: how to calculate your true billable labor rate.
Too many contractors pull a number out of thin air — $75/hr, $100/hr — without realizing what it really costs to put a technician in a truck. From payroll burden and non-billable time to trucks, tools, and overhead, this episode breaks down every component that goes into building a profitable rate — one that fuels growth instead of draining your margins.
You’ll learn:
✅ How to calculate your true cost per billable hour — including wages, benefits, and inefficiencies
✅ Why non-billable time and callbacks can kill profitability if not priced right
✅ How to factor in trucks, wraps, tools, and marketing into your hourly rate
✅ What a 25% profit margin target actually looks like in your pricing
✅ The math behind going from $75/hr → $413/hr — and why it’s justified
If you’ve ever wondered why you’re busy but not making money, this episode will open your eyes to the hidden costs every contractor faces — and how to fix them.
🕒 Perfect for electricians, plumbers, HVAC pros, and home service owners ready to scale smart and profitably.
Keywords: contractor pricing, billable labor rate, home service profitability, hourly rate calculator, trades business growth, contractor profit margin, field service management, electrician pricing, plumbing business tips, marketing for contractors
17 episodes