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, 08:52 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,811
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 12:50 PM
Would you invest in this? Steve General Business Discussions 0 10-14-2006 06:47 PM
Work Order aperfectlawn Gopher Software Support Archived Question & Answers - Read Only 5 08-02-2005 03:13 PM
Work Order lawnsrusinc. Gopher Software Support Archived Question & Answers - Read Only 7 03-23-2005 02:45 PM
How can I keep customers in order ? excel25 Gopher Software Support Archived Question & Answers - Read Only 2 02-03-2004 05:23 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Hello everyone!!!
1newkirk05
Today 03:16 PM
Today 03:47 PM
by 1newkirk05
2 21
Best two stroke oil
Greg_TopYardServices
Yesterday 07:53 PM
Today 08:30 AM
by Just for Cuts
4 55
Help Spread the word...
Sprinkler Buddy
12-02-2015 08:41 AM
Today 07:23 AM
by Sprinkler Buddy
15 1,216
Finding open bids?!?
C&DPropertyManagement
02-07-2016 01:48 AM
Today 03:43 AM
by C&DPropertyManagement
2 73
back surgery
Bradcook21
01-28-2016 08:51 PM
Today 01:06 AM
by Steve
13 316
hello all
romanlandscape
01-29-2016 03:46 PM
02-07-2016 10:20 AM
by Bradcook21
6 198
Lawn Care Book Ranked #1
Steve
02-06-2016 12:36 AM
02-06-2016 12:36 AM
by Steve
0 81
Hi
Sellers Lawn Care
02-02-2016 01:48 PM
02-05-2016 08:03 AM
by Sellers Lawn Care
4 151
Collecting payments from...
Niagara Mowing
02-03-2016 05:21 PM
02-05-2016 08:00 AM
by Niagara Mowing
7 205
SMS assist? The good,...
jcurr33
01-27-2016 10:24 PM
02-04-2016 11:53 PM
by Steve
5 224
I need some help...
Anise
02-04-2016 01:39 PM
02-04-2016 11:51 PM
by Steve
3 112
Customers dodging the...
Rocky
11-06-2015 06:22 AM
02-04-2016 03:41 AM
by C&DPropertyManagement
7 1,481
Offering a "Trial"...
wybut076
02-01-2016 06:27 PM
02-03-2016 08:26 PM
by Just for Cuts
7 241
Iowa Caucus Predictions?
Steve
02-01-2016 06:31 PM
02-03-2016 12:40 AM
by Steve
1 98
Laying White River Rock
DiamondLawnCare
02-01-2016 08:27 PM
02-03-2016 12:17 AM
by Steve
1 118
Networking for a...
jcurr33
01-30-2016 09:26 PM
02-01-2016 06:27 PM
by Steve
4 187
Customer giving a 1099?
apmAkron
01-27-2016 07:22 PM
01-31-2016 08:55 PM
by Chilehead
6 252
happy to be here
redrobin
01-29-2016 10:45 AM
01-31-2016 08:44 PM
by Steve
1 133
Thought's on an "E-Z...
jcurr33
01-27-2016 10:48 PM
01-31-2016 08:38 PM
by Steve
4 214
Changes
Knaubone
01-30-2016 10:56 PM
01-31-2016 08:31 PM
by Steve
1 120
Thoughts on this Exmark...
googus
01-28-2016 04:24 PM
01-28-2016 08:09 PM
by Chilehead
1 141
1st year in
jcurr33
10-18-2015 05:07 PM
01-28-2016 07:49 PM
by Chilehead
6 4,134
Need opinion on zero...
Mr. Mow
01-24-2016 05:42 PM
01-28-2016 07:41 PM
by Chilehead
10 354
Opinion on liquid vs...
Bradcook21
01-25-2016 02:03 PM
01-28-2016 07:38 PM
by Chilehead
9 305
Finding property size
Gageslawncare
01-25-2016 11:08 AM
01-28-2016 12:05 PM
by Gageslawncare
10 309
Tiger TG 2661 Commercial...
lawnman1959
01-25-2016 08:12 PM
01-27-2016 07:57 PM
by Just for Cuts
5 238
Spouse as a dependent?
Steve
01-26-2016 01:51 AM
01-27-2016 10:44 AM
by Chilehead
3 200
Hello All
C&DPropertyManagement
01-23-2016 12:21 PM
01-26-2016 01:24 AM
by Steve
1 175
Credit Cards - What's in...
Shark1611
06-16-2015 04:04 PM
01-23-2016 03:43 PM
by C&DPropertyManagement
17 7,677
Start My Own Business?
mowandblow1980
01-12-2016 08:43 PM
01-19-2016 07:00 PM
by Steve
12 629
State of the nation 2016.
Steve
01-12-2016 12:05 AM
01-19-2016 06:57 PM
by Steve
6 380
little help? first big...
Brian3137
12-31-2015 12:39 PM
01-19-2016 06:54 PM
by Steve
23 1,078
Hi everybody...
Greg_TopYardServices
01-14-2016 08:10 AM
01-19-2016 02:47 PM
by SC93
12 453
What's your next...
Steve
05-15-2015 12:54 PM
01-17-2016 08:48 PM
by Homeland unlimited
25 7,920
Plow controller problems
scaypa
01-12-2016 05:49 PM
01-16-2016 10:46 AM
by scaypa
4 290
Say Hello !!!
Steve
03-19-2007 12:18 PM
01-15-2016 07:23 PM
by tannerduncan
1,244 428,078
Pricing issue
Mr. Mow
07-07-2015 07:15 AM
01-15-2016 11:20 AM
by djlandscaping06
23 5,411
New College Course
Dr. D
01-14-2016 01:45 PM
01-14-2016 05:35 PM
by Steve
1 209
Yelp
Shark1611
01-13-2016 10:00 AM
01-14-2016 05:32 PM
by Steve
4 268
New to the forum from...
Doug Green
01-12-2016 12:23 PM
01-14-2016 08:34 AM
by Doug Green
2 243
Facebook advertising
Just for Cuts
12-13-2015 08:49 AM
01-13-2016 10:20 PM
by Just for Cuts
12 927
Choosing local business
Doug Green
01-12-2016 12:29 PM
01-13-2016 06:12 PM
by Steve
2 411
4 Seasons Landscaping LLC
Doug Green
01-12-2016 12:56 PM
01-12-2016 12:59 PM
by Doug Green
1 266
2016 business goals
OxfordOS
01-09-2016 04:19 PM
01-12-2016 08:36 AM
by mowandblow1980
15 574
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 04:47 PM.


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

All times are GMT -5. The time now is 04:47 PM.

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