The most expensive mistake in service businesses:

Pricing based on what your competitors charge.

Your competitors are probably losing money and don’t know it yet. Seriously. Half the service businesses I look at are running on fumes and duct tape because they priced to “stay competitive” instead of pricing to, you know, survive.

Here’s how to price properly. It’s not complicated — people just don’t do it:

1. Calculate your true cost of delivery. All of it. Not the optimistic version.

2. Add 15-20% for shit going wrong. Because shit will go wrong.

3. Add your actual desired profit margin. Not “whatever’s left” — an actual number you decided on purpose.

4. That’s your price.

If it’s higher than competitors — good. You’ll lose the bargain hunters. Those aren’t your people anyway. They’ll leave you for someone $5 cheaper and then complain about the quality.

The right customers pay more and stay longer. Every damn time. Twenty years of building has taught me that.

Stop racing to the bottom. It’s crowded down there.