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Running a service business in the United States

Cleaning, landscaping, plumbing, pest control, pool, moving, detailing, junk removal. The lead engine is one problem; running the thing profitably is another. This section is about the second one.

Every article carries a worked example. No theory without a number attached.

What this section covers

The parts nobody writes about, with numbers attached

There is no shortage of advice about marketing a service business. There is almost nothing honest about the mechanics that decide whether the work is worth doing: what an hour actually costs you, what a deposit protects, why route density beats volume, and what happens when a customer will not pay.

Pricing and margin

Loaded hourly cost, minimum job size, travel time, and why your price list is probably built on a number you guessed three years ago.

Licensing and insurance

What each trade actually requires, why general liability and workers comp are one decision and not two, and what an uninsured claim does to a small company.

Getting paid

Deposits, milestone payments, card fees, chargebacks and the collection sequence that works before it becomes a legal problem.

Scheduling and routes

Route density, drive time as a cost line, how many jobs actually fit in a day, and the true cost of a cancellation.

Hiring and crews

W-2 versus 1099 and the risk of getting it wrong, what a technician really costs per hour, and how to keep the good ones.

Customers worth keeping

Recurring service plans, which customers to fire, and why the cheapest revenue in the business is the customer you already have.

The math

One number changes everything: your loaded hourly cost

Most service businesses price from a competitor’s rate. Here is what an hour actually costs.

Technician wage$22.00
Payroll taxes and workers comp$5.94
Paid time off and training$1.85
Vehicle, fuel and maintenance per worked hour$4.10
Tools, uniforms, phone$1.35
Non-billable time (drive, quotes, admin) at 28%$9.85
True cost per billable hour$45.09

Charging $65 an hour on this cost structure is a 31% gross margin before a single overhead dollar — rent, insurance, software, office. Companies that price from what the competitor charges are inheriting someone else’s cost structure, and it is usually not theirs. The full calculation, with overhead included, is here.

Keep going

Read the service business articles

Every piece in this section is built the same way: the framework, a worked example with real numbers, and something you can use this week.

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