"If you’re busy but broke, pricing—not effort—is the problem."
Too many professional installers are grinding through the season only to end up with tight cash flow and growing frustration. The culprit? Underpricing. If you’re financing your client's Christmas instead of your own business growth, it’s time to fix that.
Table of Contents
- Why Cash Flow is the Real Killer
- The 3 Questions Every Quote Should Answer
- How to Structure a Self-Funding Business
- Smart Offers That Increase Lifetime Value
- Take Control: Profit by Design
Why Cash Flow is the Real Killer
82% of small businesses fail due to cash issues—not bad products. In the lighting world, you’re spending on products, marketing, crew, and gear months before you ever see a dime. If your pricing doesn’t account for this gap, you’re running a loan service, not a lighting business.
The 3 Questions Every Quote Should Answer
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How much cash do I collect before starting?
Start every job with at least a 50% deposit. It’s not just protection—it’s momentum. If you collect nothing before the installation, you're essentially funding your clients' Christmas light displays. If you don't have enough cash flow to help you pay for materials, labour, and overhead, you could end up broke by the start of December! -
How fast after completion do I collect?
Set the expectation: payment due same day. Waiting weeks? You're slowing your own growth. It's best to have the payment terms written up in a contract that you can refer to. Pro Tip: Aim to collect same-day or next-day whenever possible. -
What profit remains for growth?
Aim for 10–15% true net margin. Profit is not leftover—it’s planned. Otherwise, you'll end up without having the capital you need to expand your business. Want to purchase better trucks, lifts, and tools? Planning to add one more crew to your team next year? You absolutely must plan for profit to accomplish your goals.
How to Structure a Self-Funding Business
Each job should do two things:
- Cover its costs
- Fund the next client
That’s the chain reaction that powers real business growth. Underpriced jobs? They break that chain and stall your season.
That's why it's so important to plan for profit on every single installation. Improving your business year-over-year means you'll be able to start investing in digital marketing, more installers, and more salespeople/closers without taking out a loan from the bank.
Smart Offers That Increase Lifetime Value
Use these four money models to raise value and create repeat clients:
- Attract: Entice the client with great perks
- Enhance: Add values to customers willing to pay
- Recover: Scaled-back options to save the sale
- Retain: Annual service or preferred client packages
Curious about how to implement each model into your business? Here's how:
Attraction Offer
- Free design consultation
- Early booking bonus
- Priority scheduling
- Free scheduling
- 5 year warranty
Upsell with Enhanced Offers
- Adding greenery for reduced price
- Adding trees/landscaping
- Second story level
- Offering dense spacing (e.g. 6" spacing)
Recover Clients with Downsell Offers
- Omit timers
- Schedule a more convenient time
- 1-season warranty
- 2 day maintenance guarentee instead of same-day
- Omit a tree
Continuity Offers for Priority Clients
- Package your services (e.g. lights and landscaping)
- Offer a subscription model for payment
- Priority maintenance
💡 Pro Tip: Build pricing tiers like Signature, Premium, and Essential. Lead with the top-tier first. People don’t choose the cheapest—they choose the clearest value.
Take Control: Profit by Design
This isn’t about gouging. It’s about sustainability. Pricing right means you’re not scrambling for next week’s projects broke. It means you hire with confidence, quote without flinching, and stop wondering if the busy season will actually pay off.
Every job should do more than fill your calendar—it should leave you better off than the last. That’s how your business builds momentum. One project funds the next. One good client leads to more. And slowly, the stress fades because the system works.
So here’s the challenge: Before your next quote goes out, pause. Ask those three questions. Build in the deposit. Set the collection timeline. Make sure there’s real profit left over.
You’ve already put in the hard work. Now it’s time to make sure your numbers do too.
FAQs
Q: How do I justify higher prices?
A: Focus on outcomes: joy, safety, pride—not just bulbs.
Q: What if a client says it’s too expensive?
A: “Let’s revisit the value you’re getting—here’s what’s included.”
Summary
- Pricing protects cash flow
- Deposits create momentum
- Fast payments fuel growth
- Profit is planned, not leftover
- Smart offers = client lifetime value