EGIA Contractor University

Educational Workshop

Pricing for Double Digit Profitability

January 31, 2020 - Orlando, FL

Course Objective:

To evaluate the pricing methods and current pricing for contractors. The goal is for dealers pricing to be cost based, and designed then to properly produce acceptable gross profit dollars to recover overhead, understanding the difference between gross profits and gross margins, target profitability by business segment and increase cash flow to allow growth.

Topics covered:

  • Defining a company cost structure
  • Purpose of and why conduct Job Costing
  • Methods of pricing – Divisor-Markup-Multiplier-GP Per Day-Dual Overhead
  • Utilizing Add-on Replacement Cookbook – setting standards - positioning
  • GP $ per man-day Benchmarks
  • Flat Rate Implementation
  • Define Pricing in all Segments
    • Service
    • RNC
    • Residential Maintenance
    • Light Commercial and Commercial Maintenance

What to bring (Dealer):

  • Current Pricing Strategies and Rate Schedules in all Segments
  • Understanding of Pricing Templates

Follow up homework:

  • Develop a Defined Pricing Strategy in all Segments
  • Build AOR Cookbook - Positions
  • Apply GP $ per-man day Benchmarks
  • Implement Service Pricing and if Needed Flat Rate Pricing

A Laptop with Microsoft Office (EXCEL, WORD) is suggested as a learning tool, but not required. The class contains materials on CD, electronic files, and supporting forms that will help implementation.

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.