Simple pricing rule surfaced

A pricing rule from Jamaica’s small-business coaching circuit is getting wider attention: keep direct cost at or below one-third of the selling price. (x.com) The advice surfaced in social posts that pointed service operators away from quoting only labor hours or equipment and toward pricing the result a client buys. In the examples used, security firms were told to sell peace of mind, and landscapers were told to sell a yard that is ready for guests. (x.com) The math behind the rule is simple: if a job sells for 100 and hard cost is capped near 33, the remaining 67 has to cover overhead, marketing, transport, taxes, and profit. Service businesses with crews, vehicles, and irregular demand can run out of margin quickly when the direct-cost share rises much above that level. (dbankjm.com) That message lands in a Jamaican small-business economy where official agencies are still pushing firms to formalize, improve pricing, and qualify for finance. The Ministry of Industry, Investment and Commerce said on September 25, 2025 that micro, small and medium-sized enterprises are “the backbone” of the economy and are supported through financing, advisory services, standards, and market-development programmes. (miic.gov.jm) Government data also show why margin discipline is a live issue. Jamaica Information Service reported on January 17, 2025 that sales from micro, small and medium-sized enterprises rose 1.2 percent to J$207.4 billion in 2023, while own-account workers still represented about 30.8 percent of the labor force. (jis.gov.jm) Business coaches in Jamaica have built a market around that kind of operational advice. ActionCOACH Jamaica says its coaches work with business owners to increase profits and operating efficiency, and says Chief Executive Officer Marcia Woon Choy has led the local firm since 2010. (jamaica.actioncoach.com) The “sell outcomes, not features” part is older than the clip, but the examples make it concrete for trades that often default to itemized quotes. A camera package is a feature; reduced risk is the outcome. Mowing and edging are features; a yard ready for visitors is the outcome. (x.com) The catch is that one-third is a rule of thumb, not a law of business. Firms with subcontractors, imported inputs, or heavy compliance costs may need a different mix, but the underlying point stays the same: price has to cover more than the visible cost of doing the job. (dbankjm.com) That is why the advice is spreading beyond one coaching session. It turns pricing into a single test that a small operator can use fast: if the cost is eating more than a third, the quote, the scope, or the customer pitch probably needs to change. (x.com)