Featured

August 17, 2026 •32:58

EP284: Bad Pricing, Scope Creep, and More: 7 Profit Leaks Hurting Contractors

estimating finances sales pricing strategy profitability cash flow

Tonight's Episode

You can be bringing in more revenue and still wonder where all the money went. For contractors, profit doesn’t always disappear because of one big mistake. Sometimes, it leaks out through bad pricing, scope creep, underbidding, wasted time, poor job costing, change orders, and other small issues that quietly add up.

In this episode, Brad talks about:

The difference between revenue and profit
Bad pricing strategies
Fully burdened labor rates
Scope creep and its impact
The costs of callbacks and rework
Managing overhead effectively
The owner's role in profit leaks

Links to resources

Grab my free job costing worksheet and start job costing every job right away.

https://go.hammercrm.com/widget/form/4Bws6E9GGX0RZPoED1bn

Want to go deeper?

Check out the Contractor Profit Blueprint: https://www.thecontractorprofitblueprint.com/

Book a strategy call with Brad: https://hammerandgrind.com/qualification-website

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Featured Guest

Brad Huebner

Host

EP286: How Contractors Can Calculate True Labor Costs and Boost Profits

Aug 31, 2026

EP285: How to Stop Costly Estimating Mistakes for Contractors

Aug 24, 2026

EP279: How to add 100K in 12 months: Contractor Profitability Tips

Jul 13, 2026

EP287: Scope Creep Solutions: How Contractors Can Reduce Free Work & Boost Profit

Sep 7, 2026

Key Takeaways

Profit leaks for contractors often come from multiple small issues like bad pricing, scope creep, underbidding, and poor job costing rather than one major mistake.
Revenue and profit are different—contractors can bring in more revenue while still losing money due to operational inefficiencies.
Fully burdened labor rates, callback costs, rework, and overhead management are critical factors affecting contractor profitability.
Scope creep and unmanaged change orders directly impact profit margins on jobs.

Frequently Asked Questions

What are the main profit leaks discussed in this episode?

Bad pricing strategies, scope creep, underbidding, wasted time, poor job costing, callbacks and rework, change orders, and ineffective overhead management.

What is the difference between revenue and profit mentioned in the episode?

Revenue is the total money brought in, while profit is what remains after expenses. Contractors can have high revenue but low profit due to operational issues.

What resources are offered in the episode?

A free job costing worksheet, the Contractor Profit Blueprint, and the option to book a strategy call with Brad.

Why are fully burdened labor rates important?

The show notes indicate they are discussed as part of bad pricing strategies, but specific details on their importance are not provided.