The Executive Brief · Issue 002 · 2026-09-29T05:00:00.000Z

A busy service business can still be underpriced.

Supplier increases can turn a full schedule into thinner profit when the price book still reflects last quarter's costs. The executive decision is which jobs need to be repriced, and when.

+12.9%

Avg lineset increase, Oct/Nov supplier notices

Up to +15%

Selected Robertshaw parts, same notices

+8.9%

New nonresidential construction input costs, Aug 2025 to Aug 2026

44.3%

Median job gross margin, blended six-trade sample (not an HVAC target)

The Executive Question

If costs change this month, which jobs still earn their planned margin at the price quoted today?

What a Full Schedule Can Hide

A line set purchased after an increase costs more than the estimate assumed. On fixed-price work, the contractor carries the difference. On construction bids, the lag between estimating and buying stretches the exposure. Some developers are already shelving projects as materials and diesel push budgets beyond plan.

The decision is not a blanket price increase. It is knowing, by job type, what remains after parts, loaded labor, travel and callbacks. A price book built on old costs cannot protect today's margin.

The Job-Level Check

  • Current supplier cost, not the figure in the old estimate.
  • Loaded field cost, including drive and unbilled time.
  • Separate economics for repairs, maintenance and installation.

Level's 44.3% median covers nearly 1.75 million jobs at 1,791 companies across six trades. Use it as context, not as an HVAC goal. Your own completed jobs are the test.

The Pricing Control Test

What does each approved price assume about current costs, target job margin and the way the field actually quotes?

Why the Rebuild Can Pay

  • Finds the jobs where expected and actual margins diverge.
  • Improves contribution from existing trucks before buying more leads.
  • Gives estimators and technicians a price they can use consistently.

What Would Make It Disappoint

  • A blanket increase that misses the costliest job types.
  • A price book that the field overrides.
  • Job records missing travel, callbacks or material usage.

What Would You Test First?

  1. Price book age: When were your top 20 parts and equipment prices last updated?
  2. Margin misses: Which common jobs missed target gross margin in the last 90 days?
  3. Quote consistency: Do two technicians quote the same scope at the same approved price?
  4. Open bids: Which open bids need a fresh estimate before commitment?
When did you last rebuild your price book against actual costs? A full schedule is only good news when the work still earns its margin.

Bright Komeng | Founder, MyGridline

Sources: Hardwire News (supplier notices); AGC (nonresidential construction input PPI); Level (blended job data); Bisnow (project delays). Supplier increases are notices and may vary by SKU and purchase date.

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