Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Business > Money, Finances, Stocks, Bonds, & Investments.

Money, Finances, Stocks, Bonds, & Investments. A discussion on Money, Finances, Stocks, Bonds, & Investments.

You must see profit margin growth in order to invest.


Money, Finances, Stocks, Bonds, & Investments.

A discussion on Money, Finances, Stocks, Bonds, & Investments.
Reply
 
Thread Tools Search this Thread
  #1  
Old 03-06-2011, 07:52 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,282
Rep Power: 10
Steve has disabled reputation
Default You must see profit margin growth in order to invest.

Research and development plays a very important part in a company's growth. That research can go into the creation of a new product or in development of ways to provide services more efficiently.

To succeed, a company not only needs research and development, but they also need to translate those new products and efficient services into sales and revenue. Without an increase in sales and revenue, the efforts spent on R&D will be wasted.

How do you translate your R&D into increased revenue? You do this with your sales team. Your sales team needs to be the facilitator of ideas and communication between the customers and the researchers. The sales staff must take the new product or service and translate that improvement into something the customer will want. The translation will come out as a benefit to the customer.

It is important to remember customers don't buy options, they buy benefits. This applies to every industry. If you want to sell to your customer, you need to ask yourself, how will the customer benefit from what I have to offer and create your marketing around that message.

Will their lawn become greener? That is a benefit. Will they have more time with their family because they won't have to cut the lawn themselves? That is a benefit. Will your newer equipment that has a wider cut, allow you to do the job faster and cheaper than a competitor? That is a benefit.

Your sales staff not only needs to translate your products or services into benefits, to sell to the customer, they also need to listen to the customer and pick up signs of trends that are occurring in the industry. Are they hearing more customers looking for organic services? This is a trend. Such trends need to be monitored and experimented with to see if such trends can lead to new products or services. Your R&D team need to take these trends and add them into their ingredients to experiment with in order to create more products or services that will provide your company with future growth.

At the end of the day the, all the growth in the world will not equate to a good investment if that growth does not produce an increase in revenues.

This applies to every small business as it does to a large public business.

Don't let the excitement of growth alone effect your investment judgment in your business or your other investments. Growth must be accompanied with an increase in revenue to make it a worthwhile investment.

What do I mean by all this? How does this apply to you? Don't invest in that extra truck or that extra mower or extra employee, unless that growth will bring along and increase in revenue. And when I say revenue, I mean profits.

So next time you are going to invest any money in anything, you need to ask yourself, will this investment bring me an increase in profit margins?

Before you invest in that McDonald's stock because you heard all these news articles about their growth, check to see if their profit margins have been increasing first.

Before you invest in that new mower, work some figure projections out on a piece of paper to see if this new mower will increase your profit margin.

If the profit margin will increase, then you should invest. If it won't increase, don't waste your money on that investment and instead, look for another.
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
What is your profit margin? FourSeasons General Talk 32 11-26-2012 11:50 AM
Would you invest in this? Steve General Business Discussions 0 10-14-2006 05:47 PM
Work Order aperfectlawn Gopher Software Support Archived Question & Answers - Read Only 5 08-02-2005 02:13 PM
Work Order lawnsrusinc. Gopher Software Support Archived Question & Answers - Read Only 7 03-23-2005 01:45 PM
How can I keep customers in order ? excel25 Gopher Software Support Archived Question & Answers - Read Only 2 02-03-2004 04:23 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
How do I approach...
Bradcook21
Today 01:48 AM
Today 07:28 AM
by Bradcook21
2 33
Hello
M2Dave
Today 12:32 AM
Today 12:32 AM
by M2Dave
0 16
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
Yesterday 04:09 PM
by ExtremeLawncareServices
100 5,913
Downed Tree Chop Bid
WesleySnips
08-16-2014 03:47 PM
Yesterday 01:44 PM
by SGL1
10 284
2014 Gie-expo
ExtremeLawncareServices
08-19-2014 11:22 PM
Yesterday 12:01 PM
by Steve
1 51
New Landscaping Business
rekon32
08-16-2014 02:26 PM
Yesterday 11:56 AM
by Steve
7 285
Fuel Can Spouts
Shark1611
08-16-2014 09:09 AM
08-19-2014 07:52 PM
by SGL1
8 206
60 inch honda/bunton...
pblawncare
08-17-2014 11:30 AM
08-18-2014 03:19 PM
by Steve
2 98
Replacement Parts -...
nicholas-KC
08-16-2014 08:40 AM
08-18-2014 03:16 PM
by Steve
4 147
Preparing the soil
Billy Goat
08-16-2014 06:18 PM
08-18-2014 03:01 PM
by Steve
1 95
Softball field
kslawn
08-15-2014 09:28 AM
08-18-2014 02:52 PM
by Steve
7 222
What to pay help
phlawncare
08-04-2014 08:33 PM
08-18-2014 10:33 AM
by jrs.landscaping
29 852
Hello
Jeff1
08-07-2014 11:18 PM
08-15-2014 11:53 PM
by Jeff1
11 381
Lie #2 RESIDENTIAL...
ExtremeLawncareServices
01-06-2014 05:02 AM
08-15-2014 01:46 PM
by mattthelawnguy
54 6,295
Need help 30 HP koler...
Shady Grady
08-01-2014 03:31 PM
08-15-2014 08:46 AM
by kslawn
18 567
New Boomless Sprayer!
BlackRain75
01-03-2014 01:01 PM
08-14-2014 02:37 AM
by BlackRain75
12 1,724
Stihl engine isn't...
Marcintosh
08-12-2014 08:30 PM
08-13-2014 03:34 PM
by Steve
3 151
first year update
cmdlawncare
08-12-2014 05:41 PM
08-13-2014 03:29 PM
by Steve
1 193
Hello from Jacksonville,...
JM Lawn Care
08-10-2014 07:15 AM
08-13-2014 07:04 AM
by Sprinkler Buddy
9 292
Hello everyone new to...
maddyandrays
08-11-2014 04:51 PM
08-12-2014 08:58 PM
by Shark1611
2 150
Walk behinds
hpruitcei
08-07-2014 06:28 PM
08-12-2014 02:35 PM
by mattthelawnguy
7 397
New name help
stevef1201
08-10-2014 04:27 PM
08-12-2014 12:03 PM
by Steve
6 274
my little green dilemmas
Lawn Techie
08-03-2014 11:47 AM
08-11-2014 01:20 PM
by Steve
7 390
what the best...
CleanCutsLLC
08-02-2014 01:02 AM
08-11-2014 01:16 PM
by Steve
6 395
Texas lawn care company...
Livingston Lawn Care
07-25-2014 11:29 AM
08-11-2014 01:19 AM
by ExtremeLawncareServices
13 672
Covering all the bases
janslawncare
08-08-2014 10:11 AM
08-08-2014 01:41 PM
by Steve
1 222
New from Florida
ADE
08-06-2014 08:40 PM
08-08-2014 01:32 PM
by Steve
4 300
JOB - Landscape Install...
janslawncare
08-08-2014 10:06 AM
08-08-2014 10:06 AM
by janslawncare
0 188
Battery power tools or...
Steve
08-07-2014 12:24 PM
08-07-2014 05:18 PM
by mattthelawnguy
2 203
My client just told me...
Greg'slawnandlandscape
08-04-2014 08:39 AM
08-06-2014 11:14 PM
by grassdoctore
12 522
Illegal spraying
GoGreenerKS
07-04-2014 09:11 AM
08-06-2014 02:03 PM
by Steve
13 1,141
Mowing the hills
prmenter@gmail.com
07-08-2014 12:22 PM
08-06-2014 01:40 PM
by Steve
20 1,346
Crop Rotation Techniques...
eastsidelandcare
07-17-2014 03:47 PM
08-06-2014 10:29 AM
by eastsidelandcare
5 574
Got my first lawn job...
SGL1
06-11-2014 09:19 PM
08-05-2014 07:12 PM
by TheBeast
30 1,934
Late charge
Simon Abousaada
07-30-2014 07:23 PM
08-05-2014 06:46 PM
by TheBeast
12 771
buy out a lawn care...
rvezakis
08-05-2014 01:38 PM
08-05-2014 06:40 PM
by TheBeast
10 472
Please help
unitedlawncare48867
03-26-2014 08:29 PM
08-05-2014 05:27 PM
by TheBeast
27 1,556
Help with Estimate
donslawns
08-02-2014 09:10 AM
08-05-2014 02:24 PM
by Steve
6 432
Stuck again!!!!
Greg'slawnandlandscape
08-01-2014 11:02 PM
08-05-2014 09:05 AM
by Greg'slawnandlandscape
10 445
Mow and leaf cleanup bid
SGL1
07-29-2014 07:28 PM
08-05-2014 07:22 AM
by petscanning
25 939
Building credit
Matther777
07-27-2014 05:20 PM
08-04-2014 06:53 PM
by kslawn
17 733
Lowballers scrubs &...
Darksteel
01-13-2014 07:35 AM
08-04-2014 01:09 PM
by Steve
48 5,752
long time no see
Tuscan Gardens
08-02-2014 03:21 PM
08-04-2014 12:04 PM
by Steve
1 271
Pressure Washing Like a...
TNTurf
08-01-2014 11:47 PM
08-04-2014 11:58 AM
by Steve
2 307
trimming back shrubs
WesleySnips
07-31-2014 06:14 AM
08-04-2014 11:52 AM
by Steve
6 415
Pressure Washing...
WesleySnips
07-31-2014 06:13 PM
08-04-2014 11:50 AM
by Steve
3 342
Grass hopper mower
ExtremeLawncareServices
12-05-2013 08:51 AM
08-02-2014 07:55 AM
by ExtremeLawncareServices
24 3,485
Easy money
stevef1201
11-14-2013 10:17 AM
08-02-2014 01:03 AM
by stevef1201
3 1,496
Say Hello !!!
Steve
03-19-2007 11:18 AM
08-01-2014 11:42 PM
by TNTurf
1,186 327,987
Echo Edger 'Neutral'
WesleySnips
07-25-2014 05:28 PM
08-01-2014 01:50 PM
by stevef1201
7 543
» Popular Tags
2wd 4x4 apartment lawn care estimate birdscaping care charge collections subcontractor commercial craigslist credit card processing customers ecosymbiosis exmark ferris four wheel drive gopherhaul grass gravely holiday honda how much to charge how to bid husqvarna hydraulic installation invoice kawasaki labor cost landscape services late lawn lawn care lawn care business lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website lawn service leaf cleanup leaf removal lesco marketing mulch estimate native plants new buisness online classifieds podcast rotating scag scag v-ride search engine optimization season seo small engine repair sprayer starting a business stihl theft of services tips toro tractor auger trailer mate pro truck new used landscape upsell walk behind walker winter money making ideas won't return wright stander rh
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 08:40 AM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 08:40 AM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy