Arkansas HVACR NewsMagazine September 2025

HVACR NewsMagazine September 2025

Business & Marketing Tips

I said, “Fine. What net profit per hour do you want for duct jobs?” He answered and then we established the prices for duct jobs. He agreed that if a customer was not willing to pay what he required to do those jobs, then he would not do the work. And, I never head a complaint about duct jobs again. 1. What profit do you want to earn? 2. What is the overhead cost (using overhead cost per hour)? 3. Add the two numbers. This gives you your gross profit per hour. 4. How many hours will the job take? 5. Multiply those hours by the gross profit per hour. 6. This gives you your total gross profit. 7. Then add the direct cost for the job. (Make sure you add commission in these numbers). So, start at the bottom line. This is the selling price to the customer. Next week, more ways to increase your profitability.

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Ruth King Profit & Wealth Guru 770-729-0258 rking@ontheribbon.com

The Arkansas HVACR Association welcomes Ruth King as a regular contributor to the NewsMagazine. We appreciate her willingness to help Arkansas contractors learn the business side of their company. Along with technical issues, a company must master the art of running the business for the benefit of the owner, employes, and their customers. Welcome Ruth

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