What 'knowing your numbers' actually means
Before you price a single job, you need to know exactly what your business costs to exist every month.
This phrase gets thrown around constantly in the trades. Almost nobody explains what it actually means.
It means this: before you price a single job, you need to know exactly what it costs your business to exist every month — whether you work or not. Rent, utilities, insurance, vehicle payments, software, your own salary, accounting fees. Add it all up. That number is your overhead. Every job you price needs to contribute to covering it.
Once you know your monthly overhead, you can calculate your breakeven — the minimum revenue you need to keep the lights on. Anything below that, and you are going backwards, no matter how busy you feel.
Most shops never calculate this number. They price based on what the market charges or what feels right. That works until it doesn't.