EGIA Contractor University

Educational Workshop

Pricing for Double Digit Profits with Financial Basics

January 23-24, 2019 - Nashville, TN

Evaluate the various pricing methods and strategies for pricing in contracting. We will review all methods and strategies to ensure dealers' pricing is cost-based and designed to properly produce acceptable gross profit dollars to recover overhead. We also must understand the difference between gross profit dollars and gross margins, target profitability by business segment, and how to increase cash flow to allow growth. We will review divisor, multiplier, markup, gross profit per crew by day and hour, breakeven and dual overhead pricing methods. We will also discuss the idea of aligning a company brand to a market price, and acceptance of the price versus just cost and profit.

Topics Covered:

  • How Pricing Fits into a Company Brand and Overall Strategy
  • Defining a Company Cost Structure – Properly Organized Chart of Accounts
  • Breaking Down Revenues, Cost of Goods Sold, Overhead, and How Income Statements Work (GAAP)
  • Identifying Breakeven, Gross Profit Per Day and Overhead Per Day Concepts
  • Methods of Pricing – Divisor, Markup, Multiplier, GP Per Day, Breakeven, Dual Overhead
  • Utilizing Add-on Replacement Cookbook – Setting Standards - Positioning
  • GP $ Per Man-Day Benchmarks in Replacement and Light Commercial
  • Crew Capacity – Labor Capacity – Planning Overhead Per Day
  • Flat Rate Implementation – Setting a Labor Rate Correctly Based on Price and Market
  • Key Performance Indicators – Benchmarks and Their Use in Pricing
  • Define Pricing in all Segments
    • Service Pricing Labor Rate and Parts Markups
    • RNC – Single and Dual Overhead, Cost-Based, Breakeven
    • Residential Maintenance – Breakeven, Costs, and Pricing to a Margin
    • Light Commercial and Commercial Maintenance

More Information

Course Materials

  • Course Manual/Workbook
  • Electronic Files – Cookbook Excel Tool, Budget, Chart of Accounts, Example Pricing Tools Comparing Methods, Flat Rate Pricing Tool for Street Rate, Service Agreement Pricing Template.

What to Bring:

  • An Excel Capable Device is Highly Recommended
  • Profit & Loss Statement Year to Date, Year-End Previous
  • Balance Sheet – Current
  • Chart of Accounts List
  • Budget and Cash Flow Statement (if Available)
  • Current Pricing Strategies and Rate Schedules in All Segments
  • Pricing Being Used in the Company Today

Who Should Attend?

  • Owners of Trades
  • Bookkeeping Function
  • Managers in a Company
  • Mid-Managers of Any Company Wanting to Grow and Empower Managers

Follow-up Homework:

  • Watch the Financial Videos on Site
  • Study All Financial Documents on Site
  • Restructure Chart of Accounts
  • Begin Producing Monthly Balance Sheets and Income Statements
  • Adjust Prices if Necessary
  • Use KPI’s
  • Watch all Pricing Videos
  • Review All Best Practices on Contractor University Website on Pricing by Market Segment
  • Develop a Defined Pricing Strategy in all Segments for Your Company
  • Build AOR Cookbook – Positions
  • Apply GP $ Per Man-Day Benchmarks
  • Implement Service Pricing and if Needed Flat Rate Pricing

Presenter Bio

Gary Elekes

President, EPC Training

Gary Elekes is serial entrepreneur with a passion for helping others become more successful by sharing what he has learned over the past 3 decades working closely with all facets of the contracting industry. During his career, Gary has held senior management positions at Lennox and Service Experts. In 2000, Gary moved into entrepreneurship and started his training and consulting business EPC. Today, EPC continues to support growth oriented businesses aspiring to reach 20% EBIT. He also designed the very first web based learning platform for the residential contracting industry, which acts as a support system for training and learning in HVAC and plumbing trades, and has over 5,000 subscribers.

In 2003, Gary began acquiring contracting firms with a focus on developing turn-around opportunities. He also opened and operated several start-up businesses. In 2010, he added web design/SEO and online marketing to his company portfolio starting Imarket Solutions as a co-founder. Gary graduated from Ohio State University with a BSBA and also holds a Master's Degree in Business and Finance.