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 online now
Administrator
 
Join Date: May 2003
Posts: 37,246
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
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
Yesterday 09:46 PM
by ExtremeLawncareServices
61 5,334
Correct me if I'm wrong...
SGL1
Yesterday 02:41 PM
Yesterday 09:16 PM
by SGL1
3 57
Lawn Care Service in...
Friscobob
04-24-2015 03:33 PM
Yesterday 06:37 PM
by Friscobob
3 119
Buying contracts /...
greenscaper123
Yesterday 04:46 PM
Yesterday 04:46 PM
by greenscaper123
0 38
what's the big deal...
Tony317
04-25-2015 02:19 PM
Yesterday 12:08 PM
by SGL1
2 93
New company in Michigan
SEM
04-24-2015 09:27 PM
Yesterday 05:18 AM
by Sprinkler Buddy
3 96
Total yard rehab
SGL1
04-23-2015 03:59 PM
04-25-2015 08:25 PM
by SGL1
7 179
mowing pic
joshlawncare
04-25-2015 12:34 PM
04-25-2015 08:09 PM
by avetslawncare
1 81
Big (to me) mulch job
tl757
04-23-2015 05:32 PM
04-25-2015 08:01 PM
by avetslawncare
7 197
Newb Question - Multiple...
DependiLawn
04-24-2015 11:36 PM
04-24-2015 11:36 PM
by DependiLawn
0 71
maintandlawndispatch...
SGL1
04-21-2015 03:31 PM
04-24-2015 04:42 PM
by Steve
9 236
Thoughts on Undocumented...
element009
09-25-2011 11:08 AM
04-23-2015 09:32 PM
by Chilehead
56 15,535
Hello Everyone
DesignsByBnC
04-22-2015 04:07 PM
04-23-2015 02:19 PM
by DesignsByBnC
2 120
The upcoming rainy...
5StarLawnscaping
04-21-2015 01:22 PM
04-23-2015 12:54 PM
by Steve
7 214
color fliers?
holymoly
04-18-2015 02:32 PM
04-23-2015 12:50 PM
by Steve
12 384
I'm Back With The Best...
aduttonater
02-21-2015 12:41 AM
04-22-2015 07:04 PM
by Just for Cuts
59 2,574
WARNING! Especially to...
SC93
04-19-2015 12:05 PM
04-22-2015 01:39 PM
by Steve
14 446
Could be great news for...
SC93
04-14-2015 11:06 PM
04-22-2015 01:28 PM
by Steve
15 526
quick pic
joshlawncare
04-14-2015 07:49 PM
04-21-2015 05:01 PM
by joshlawncare
4 361
Got Inspected today
swstout
08-09-2010 10:31 PM
04-21-2015 03:53 PM
by SGL1
10 4,020
Smoked my first belt!
SGL1
04-20-2015 08:46 PM
04-21-2015 03:28 PM
by SGL1
4 186
Pictures of commercial...
avetslawncare
04-01-2015 09:47 PM
04-21-2015 12:47 PM
by Steve
25 1,032
lawn care business...
holymoly
04-18-2015 02:56 PM
04-21-2015 06:18 AM
by holymoly
3 273
landscape insurance
clarkslawn
03-30-2015 10:14 PM
04-20-2015 10:02 PM
by SGL1
4 494
Poll & Discussion...
CHEESE2009
09-16-2011 06:16 PM
04-20-2015 08:20 PM
by avetslawncare
27 5,694
weed
avetslawncare
04-16-2015 07:56 PM
04-20-2015 01:08 PM
by Steve
4 280
Aerating / Dethaching...
Hard-Body lawn & garden
04-12-2015 07:53 PM
04-19-2015 08:49 PM
by Chilehead
17 623
Start LIKING FACEBOOK...
rlclawncare123
02-26-2015 12:06 AM
04-19-2015 09:21 AM
by KJ90
8 1,036
bidding a cemetery....
NPM_LLC
03-28-2015 10:56 AM
04-19-2015 05:26 AM
by RSE
22 1,050
Hustler Raptor
SGL1
04-13-2015 09:27 PM
04-18-2015 07:53 AM
by SGL1
15 540
is craiglist good to...
JBENI
04-16-2015 11:11 AM
04-17-2015 10:25 PM
by Wolf4dk
11 452
Am I missing something...
googus
04-11-2015 06:33 PM
04-17-2015 08:01 PM
by avetslawncare
10 560
Hello
sonny54
04-16-2015 09:49 PM
04-17-2015 03:10 PM
by Steve
1 220
Unreal
Chilehead
04-09-2015 09:12 PM
04-17-2015 08:27 AM
by Chilehead
11 597
starting a lawn care...
JBENI
04-14-2015 09:03 AM
04-17-2015 08:03 AM
by JBENI
14 584
Finally got a warehouse
avetslawncare
03-12-2015 07:52 PM
04-16-2015 07:52 PM
by avetslawncare
23 1,395
New 14 x 7 Enclosed...
whitepropertydetail
04-15-2015 06:46 PM
04-16-2015 03:40 PM
by Steve
1 278
older used dump trucks
SECTLANDSCAPING
09-22-2011 12:33 AM
04-16-2015 12:41 PM
by biglee
21 8,079
Tax Poll
Steve
04-15-2015 02:13 PM
04-15-2015 02:13 PM
by Steve
0 257
lawn care by Aj
aj10261984
04-14-2015 06:50 PM
04-15-2015 01:43 PM
by Steve
2 302
Contact last years...
googus
01-28-2015 08:13 AM
04-15-2015 12:54 PM
by SC93
7 1,297
trying to sign up for...
JBENI
04-14-2015 10:20 AM
04-14-2015 12:11 PM
by Steve
1 822
Charging customers for...
Hard-Body lawn & garden
04-14-2015 07:34 AM
04-14-2015 10:35 AM
by Steve
1 339
New member
Jdlandscaping,LLC
04-11-2015 03:24 PM
04-14-2015 05:45 AM
by Jdlandscaping,LLC
2 360
hello
oasis_greenscapes
04-01-2015 06:18 PM
04-13-2015 12:03 PM
by Steve
8 595
New Member
Greenturion
04-11-2015 02:00 PM
04-13-2015 11:59 AM
by Steve
1 319
Client with...
OldSalt
04-07-2015 09:47 PM
04-13-2015 11:57 AM
by Steve
8 546
Getting rid of "mulched...
Mr. Mow
04-12-2015 04:21 PM
04-13-2015 11:26 AM
by biglee
3 359
String trim BEFORE mow...
Mr. Mow
04-12-2015 08:13 AM
04-13-2015 11:11 AM
by biglee
7 471
Billing methods
jcurr33
03-26-2015 01:33 PM
04-13-2015 11:07 AM
by biglee
15 984
» Popular Tags
apartment complex auger bark billy goat brushcutter blades blowout bob villa collections commercial demonstration design edging employee problems equipment rental ferris flyers foreman free advertising grass growing a lawn care business hardscapes hills hiring husqvarna hydraulic john deere quik trac landscape landscape services landscaping training lawn aeration lawn care lawn care business seo lawn care business website lawn care business website seo lawn care seo lawn care website marketing more customers business mr dave new business ordinance past due patio install per hour charge pricing profit on employee pto push versus ride running a business scag v-ride scripts search engine optimization secrets to landscaping sell the vision seo shell small engine repair square foot sulky toro grand stand trailer tree trimmer rack truck new used landscape up sell employee web design website website design winterization won't return
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 01:40 AM.


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

All times are GMT -5. The time now is 01:40 AM.

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