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Cash is King?"


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  #1  
Old 04-06-2006, 12:36 AM
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Did you see the article in Pro "Cash is King?"

It talked about an LCO who build his company up to a $400,000 a year company. When he was making $100,000 a year, he thought that if he could make $400,000 he would also multiple his profits by 4. But he ended up losing money and his company almost went belly up.
He hired a consultant and found that he wasn't pricing his jobs evenly. The larger jobs he had, the more he lost on them. It wasn't until he reviewed all his jobs that he found out where he was losing money. Then he raised prices. His big fear was he would drive his customers away, but only 10% left. That was 10% of customers he was losing money on too!

Something to make us all think.
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Old 04-06-2006, 01:11 AM
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I read the article, pretty good article. I love it when they actually put some graphics in there for you can see it visually *I personally like the articles about companys in specific.

Not to down play that article or others, but is it just me, or are all the magazines basically repeating themselves over and over again year after year. *For example, the Pro magazine. *I read mag in like 15 mins. *To me a lot of it, not all it, is the same thing.
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Old 04-06-2006, 01:34 AM
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Quote:
Originally Posted by [b
Quote[/b] ]Not to down play that article or others, but is it just me, or are all the magazines basically repeating themselves over and over again year after year.
I totally agree. That might be the downside to niche magazines.

Did you also catch in the magazine article how the LCO kept fighting the consultant all along the way? Isn't it wild to see how we know at times we need to change things yet we fight ourselves from doing it.

It makes you wonder what you are fighting yourself now from doing.
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Old 04-06-2006, 01:46 AM
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You know me, I fought you tooth and nail about the whole personal thing, and I finally opened up to that. Only took me about 6 months of you telling me to make the switch. Since I have made the switch, it has worked out great
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Old 04-06-2006, 01:53 AM
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I am very happy it worked too.

It makes me think of an old quote.

The line between failure and success is so fine that
we scarcely know when we pass it; so fine that we are
often on the line and do not know it.

**Elbert Hubbard
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Old 04-07-2006, 09:54 PM
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How do you go about finding a consultant like that? We live in SW Florida. This might be very helpful for us to have someone let us know if we are underpriced. Our average properties are 80x125 and we charge about $70.00 per month. How do we find out if that's a good price?
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Old 04-07-2006, 10:44 PM
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Well I would think most consulting could be offered over the phone.

If you are interested, Joel LaRusic offers consulting. He is very insightful. In fact you could even fill out the form here with your question and he will respond free.

Joel wrote this book.

Quote:
Originally Posted by [b
Quote[/b] ] How do we find out if that's a good price?
Well first thing is you need to know your expenses. How much is it costing you to run your business per hour. How long does each job take? Then you also must take into consideration what the local market is charging. If you can keep your expenses lower than your competitors, it will give you an advantage over them.

Sam Walton, Walmart founder, said you can always beat your competitors by keeping your expenses lower than theres.
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Old 04-07-2006, 10:49 PM
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That is a great point TG
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