When planning for the upcoming year, profit is on every business owner’s mind. These best practices will put you in a position to grow in 2018.
- Every sale needs to be profitable. Don’t cut your sales price on a job with hopes to make it up on another. When you give up some, if not all of the profit on a job, you’re losing out on income that needs to cover your business overhead. Make every job and sale stand on its own and be profitable.
- Ignore the competition. Being aware of your competitors is good for business but don’t make worrying about them a priority. Your goal is to be profitable, not competitive.
- Know your margins. Calculate your profit margin correctly and apply it to every sale.
- Always be advertising. Reducing your advertising efforts means reducing your prospective client base. Keep an advertising plan in place all year to boost your sales efforts.
- Communicate payment clearly. Be sure your client understands when they are expected to make payments and the result of missing a payment deadline. If they seem concerned about meeting the payment schedule, offer low monthly payments with financing as an alternative.
- Say no when necessary. Whether it be a potentially difficult client or a change order that will cost you money, understanding when to say no without burning bridges will keep you profitable in the long run.
Understanding your value and delivering on it time and time again will keep your business in the black year after year. If you are struggling to be profitable due to cost objections, consider offering consumer financing on every sale to close more deals.
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