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: 36,603
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
Peco Bagger
AGPS
11-18-2014 02:20 PM
Today 05:56 PM
by AGPS
9 242
Beginner Mistakes:...
Steve
01-31-2007 12:45 PM
Today 02:42 PM
by stevef1201
22 6,046
These are the days on...
ExtremeLawncareServices
03-22-2014 10:12 AM
Yesterday 09:48 PM
by ExtremeLawncareServices
174 13,884
Hello from Kentucky
TRV
09-30-2014 06:42 PM
Yesterday 09:38 PM
by TRV
6 1,237
Contract or no contract?
TRV
11-20-2014 09:18 PM
Yesterday 09:33 PM
by TRV
3 115
Hi to you NOTHERNERS
stevef1201
11-11-2014 05:56 PM
Yesterday 08:02 PM
by stevef1201
4 281
Billboards for marketing
ExtremeLawncareServices
11-16-2014 08:39 PM
Yesterday 07:05 PM
by acrajchel
13 335
Pics for website
tbtigers03
Yesterday 05:40 PM
Yesterday 06:48 PM
by acrajchel
2 66
New website
Chilehead
11-20-2014 04:39 PM
Yesterday 06:43 PM
by Steve
3 102
Belt dealer problem
googus
Yesterday 08:45 AM
Yesterday 06:36 PM
by Steve
2 74
Good help is hard to find
Hanks Lawn Care Services
11-19-2014 03:27 PM
Yesterday 06:32 PM
by Steve
7 178
My site is on fronts page
tbtigers03
11-14-2014 05:58 PM
Yesterday 06:28 PM
by acrajchel
15 435
How to: Use Thumbtack...
acrajchel
11-17-2014 06:39 PM
Yesterday 06:07 PM
by acrajchel
15 434
What is going on with...
biglee
11-14-2014 03:04 PM
11-20-2014 02:50 PM
by biglee
40 892
My advice for new guys
avetslawncare
11-15-2014 09:32 AM
11-19-2014 01:47 PM
by biglee
10 439
Lawn Care business...
crieg122
10-23-2014 02:23 PM
11-19-2014 12:39 PM
by acrajchel
28 1,800
raking leaves ?
robert8509
10-22-2014 10:19 PM
11-18-2014 04:24 PM
by acrajchel
14 1,409
Leaf removal
madmedic8575
10-24-2014 05:14 PM
11-17-2014 07:34 PM
by acrajchel
6 1,152
sod job
SGlawncare
10-30-2014 09:21 PM
11-17-2014 07:10 PM
by acrajchel
7 729
Customer wants me to...
Mr. Mow
11-09-2014 07:13 AM
11-17-2014 06:48 PM
by acrajchel
10 483
Hello!
Brian3137
11-11-2014 07:15 PM
11-17-2014 06:46 PM
by acrajchel
14 426
small biz in Phoenix,AZ
anthonyramos1
11-08-2014 09:35 PM
11-17-2014 05:59 PM
by acrajchel
2 287
Client won't pay...
WesleySnips
10-30-2014 03:53 PM
11-17-2014 05:37 PM
by acrajchel
22 1,309
Government contracts
avetslawncare
11-15-2014 08:50 AM
11-17-2014 12:59 PM
by Steve
2 212
Need help on deciding a...
Brian3137
11-10-2014 06:32 PM
11-17-2014 12:44 PM
by Steve
12 476
West cost lawn prices
SGlawncare
10-09-2014 10:51 PM
11-16-2014 07:54 AM
by stevef1201
8 1,554
So how do you guys...
Mr. Mow
10-26-2014 08:55 AM
11-15-2014 08:44 AM
by avetslawncare
14 1,663
Truck, Trailer,...
hawthornelawncare
12-23-2011 01:01 AM
11-13-2014 08:35 AM
by jrs.landscaping
81 31,742
The most dangerous part...
Steve
10-06-2014 03:45 PM
11-12-2014 05:05 PM
by stevef1201
14 1,635
A little hang up in snow...
stevef1201
11-08-2014 07:05 AM
11-12-2014 12:51 PM
by Steve
4 395
Bi-weekly winter...
lxarth
11-04-2014 08:37 PM
11-12-2014 10:06 AM
by WesleySnips
9 589
taking first steps...
sizemorelawncare
11-10-2014 08:24 PM
11-11-2014 01:21 PM
by Steve
1 282
Back Pack Blower
Ian Lovejoy
11-09-2014 08:41 AM
11-11-2014 08:12 AM
by Just for Cuts
4 345
Business Cards
crieg122
10-25-2014 01:03 PM
11-11-2014 07:56 AM
by Just for Cuts
12 1,280
How the unregister?
alive101
11-04-2014 07:39 AM
11-10-2014 01:48 PM
by Steve
4 572
Belt adjustment question
googus
11-05-2014 06:43 AM
11-10-2014 01:38 PM
by Steve
5 478
New parking area
ExtremeLawncareServices
11-07-2014 09:47 PM
11-10-2014 01:25 PM
by Steve
2 312
Podcast
Shark1611
11-07-2014 05:42 PM
11-10-2014 11:41 AM
by Steve
1 271
hi, from Minnesota
rjklohn
11-07-2014 02:21 AM
11-07-2014 01:44 PM
by Steve
1 285
New to snow plowing
SS.Lawncare
11-05-2014 04:00 PM
11-07-2014 01:21 PM
by Steve
6 516
New Member
tonyap
11-05-2014 10:35 PM
11-07-2014 01:15 PM
by Steve
1 333
New to the business
jcurr33
11-05-2014 03:21 PM
11-07-2014 01:11 PM
by Steve
1 382
Lines
Matther777
11-04-2014 02:19 PM
11-07-2014 12:54 PM
by Steve
1 425
hello, new to this site
tonyorwig
10-31-2014 10:49 PM
11-04-2014 02:24 PM
by tonyorwig
3 623
Aloha from Hawaii.
Gary R
11-02-2014 12:44 AM
11-03-2014 03:02 PM
by Steve
1 523
Pavers
crieg122
10-28-2014 03:49 PM
10-31-2014 01:49 PM
by Steve
6 839
Hi Steve From West...
Mr. Mow
10-21-2014 02:59 PM
10-31-2014 12:56 PM
by Steve
5 1,153
Got my first lawn job...
SGL1
06-11-2014 10:19 PM
10-31-2014 10:53 AM
by Max Wagner
30 3,260
Gie-review / What's new...
ExtremeLawncareServices
10-25-2014 10:19 AM
10-31-2014 10:30 AM
by ExtremeLawncareServices
7 1,077
Business Name
sanchez5
10-29-2014 12:55 AM
10-31-2014 06:51 AM
by ringahding1
10 947
» Popular Tags
4wd aerocore apartment bid apartment lawn care estimate applying article marketing bid billy goat brushcutter blades bush charge decorating deliquentaccounts ditches employee problems estimate exmark ferris first truck foreman four wheel drive gopherhaul gravely growing a lawn care business hiring how much to charge how to how to bid installation introduction kawasaki landscape services lawn lawn care lawn care busines plan lawn care business lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website marketing mulch mulch price new mower ordinance podcast pto reo running a business scag scag v-ride search engine optimization seo shreaded snow snow plowing starting a business start up lawn care business steep lawns steve stihl toro toro grand stand trailer mate pro tree truck new used landscape turfgrass consulting walker won't return
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 08:44 PM.


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

All times are GMT -5. The time now is 08:44 PM.

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