Markup is copied from competitors
This root cause can reinforce the visible constraint across jobs or teams and make consistent execution harder to sustain.
Growth challenge guide · Finance & Risk
Jobs are being underpriced.
The estimate covers direct work but misses supervision, mobilization, warranty exposure, waste, overhead, risk, or the real cost of capacity. This guide explains how to diagnose the constraint, build a practical response, and measure whether the business is actually getting stronger.
The short answer
Why does this challenge keep returning?
The estimate covers direct work but misses supervision, mobilization, warranty exposure, waste, overhead, risk, or the real cost of capacity. The visible problem is rarely the whole problem. Contractors make durable progress when they connect leadership, customer experience, marketing, systems, people, and financial discipline instead of treating the symptom as a one-time task.
Karen’s connected-growth perspective
The estimate covers direct work but misses supervision, mobilization, warranty exposure, waste, overhead, risk, or the real cost of capacity. Before adding another campaign or tool, verify this likely contributor: markup is copied from competitors. The first practical move is to separate direct cost, overhead, contingency, and profit, document what changes, and use that evidence to decide what comes next.
Karen Becerra, Founder & CEO of Thryve HQCommon root causes
Look beneath the symptom.
Use these as diagnostic prompts, not assumptions. Confirm what is true in your own workflow before investing in a solution.
Historical production data is weak
This root cause can reinforce the visible constraint across jobs or teams and make consistent execution harder to sustain.
Winning the job is prioritized over earning the right margin
This root cause can reinforce the visible constraint across jobs or teams and make consistent execution harder to sustain.
A practical response
What to do in the next 30 days.
Sequence matters. Finish the foundational move before layering on more tools, campaigns, or complexity.
- 01
Separate direct cost, overhead, contingency, and profit
Start here, assign a clear owner, define what complete means, and set a review date tied to this specific change.
- 02
Compare estimated and actual production
Start here, assign a clear owner, define what complete means, and set a review date tied to this specific change.
- 03
Set approval thresholds for low-margin bids
Start here, assign a clear owner, define what complete means, and set a review date tied to this specific change.
- 04
Review pricing by service, estimator, and customer type
Start here, assign a clear owner, define what complete means, and set a review date tied to this specific change.
Leadership checkpoint
At the end of 30 days, decide whether the constraint is improving, unchanged, or moving somewhere else. Keep what works, correct what does not, and document the new standard.
Measure business health
Three signals worth watching.
Choose a consistent review rhythm and keep definitions stable long enough to see a real trend.
Signal 01
Gross margin by job type
Track the trend consistently and use it to decide the next operational move—not to create a decorative dashboard.
Signal 02
Estimate variance
Track the trend consistently and use it to decide the next operational move—not to create a decorative dashboard.
Signal 03
Revenue won below margin floor
Track the trend consistently and use it to decide the next operational move—not to create a decorative dashboard.
The connected-growth view
Do not solve one department by creating a problem in another.
A marketing fix can overload operations. A hiring fix can pressure cash. Automation can scale a broken process. Thryve HQ evaluates the constraint across Growth Leadership, Brand & Marketing, Systems, AI & Governance, and Business Development before recommending implementation.
Frequently asked
Questions contractors ask.
Is jobs are being underpriced normal for a growing contractor?
It is common, but it should not be treated as permanent. The important question is whether the company can name the cause, assign ownership, and measure improvement.
What should we fix first?
Start with the first controllable constraint: separate direct cost, overhead, contingency, and profit. Avoid adding more demand or software until the current workflow is understood.
How quickly should we expect improvement?
Some process indicators can improve within weeks, while financial, reputation, and organizational outcomes usually require repeated execution over several months. Thryve HQ does not guarantee results.
Do we need new software?
Not automatically. Clarify the workflow, decision owner, standard, and data needed first. Software should support an operating process rather than become the process.
Keep learning
Find the next constraint.
Growth problems are connected. Use the complete list to see what may be upstream or downstream from this issue.