Episode
How Smart Contractors Can Raise Prices & Still Build Predictable Revenue
- Published
- Apr 8, 2026
- Duration seconds
- 2227
- Processing state
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- https://share.transistor.fm/s/5179b360
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Summary
Guest: John Conway – COO, Redwood Services Guest Links: Website: https://redwoodservices.com/ This episode breaks down why “going rate” is one of the biggest myths in home services , and why undercharging has far less to do with the market than it does with fear, weak systems, and misunderstanding what customers are actually buying. It explains why homeowners do not usually say yes or no based purely on price, but on the value, professionalism, and overall experience delivered during the service call, and why owners who obsess over being the cheapest often limit their ability to invest in training, benefits, and better customer service. The conversation dives into what gross margin really tells you, why HVAC and plumbing owners should track it relentlessly, and how charging the wrong price quietly destroys a company even when call volume looks strong. It also covers how to raise prices without losing customers, why most owners overestimate price sensitivity, and how to think about average ticket, conversion rate, and call count as the three numbers that truly drive the business. Beyond pricing, the episode gets tactical on how to stop “teaching technicians to sell” and instead train them to follow a thorough process that naturally leads customers to better decisions, including full-system inspections, option presentation, and slowing technicians down enough to focus on quality instead of just quantity. It also explores membership strategy, why 350 memberships per technician creates stability, how to build real perceived value into maintenance agreements, and when it actually makes sense to add another trade like plumbing or electrical instead of chasing shiny objects too early. Overall, this is a highly practical roadmap for contractors who want to price correctly, bui…