Do You Want to be the Low Cost Leader?
May 10th, 2010 by
Barb
There are lots of reasons why not. You have to kiss alot more frogs to make the same profit dollars, lots more opportunities to screw up, or your market is too small and you just end up losing out.
BUT, what iIFthe shoe fits and you can make a fair amount bottom line and IF you understand what you have to do, and IF you could get rid of your obsession with being perfect, then, does it make any sense?
In the right market (a large one), and if you have the skills and Plan in place to do this, you could get a lot of jobs and make a good, even great living. I suggest you don’t make this decision without looking at it. Consider the Hows.
HOWS First you have to figure out how to extend times between waterings. Joey Pouches will allow this to happen even though there is an upfront cost for the product, they are paid for in a relatively short space of time and the increased profit from lower windshield time and replacements and on site labor works. Next, by using the Joeys you can have techs that are not as skilled or require higher training. Takes out the how much, how often scenario. Years ago several companies in CA did just this using CWI’s. They still report that those accounts are the least trouble and the most profitable. Now with the Joeys, these pluses are increased greatly.
BUT. It still comes down to how you view yourself. Are you the Horticultural Gurus? Do you think of yourself awsthe Plant Guy first or Businessman first?
And, what if there is a melding of the two that still leaves a little of each, self esteem and a few extra dollars. It is a decison that needs to be made. Use the tools available to increase profit while still positioning your company to work with pricing that gets and keeps accounts.
Bottom Line? You have got to know how low you can go before you cut into vital organs. Then, if you have to go to low to get or save the job, JUST SAY NO, politely of course. And for those of you with sales person(s), make sure they know how low they can go and consider lowering commissions if they go below a fixed profit margin/dollar range. It’s called tough love. What good is it to get the job when the only one who made any cash is the salesperson? It is a 2 way street. No go out there and….sell some TOPsiders for me. Barb
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