Monthly Business Newsletter
As anyone who reads this newsletter knows, NSPG is a Flat Rate Price Book software and printed books company. We know what people want in their books and how they want to set up those books. What they actually put in their books is often very different. The fear that business people have in charging a profitable price is apparent to us every day.
Most people in our businesses know that nervous feeling as we present a proposal to a customer when we get to the price. The fear of being challenged because the price is too high is something that every field tech needs to overcome. That's where flat rate books that offer a range of separate Task options for each job can smooth out most price objections. The choice isn't between that's too expensive and do it. The choice is between options A, B, and C each with a different price and service level.
What we see every day is the different fear that the business manager deals with when it's time to update his price books.
Often the response we get is that they will try to wait just a few more months before they print another set of books. They choose to continue to see their profits decrease rather than take the small amount of time needed to reprint their price books with new, profitable numbers.
We often remind them how much the price of gas has gone up since their last books were printed. How much material costs, health insurance, workman's comp, utilities, and all the dozens of other components of their costs have gone up. Each of these items adds a small amount to your cost of doing business. Put together, they can add up to tens of thousands of dollars.
Can anyone really afford to lose that kind of money while they wait to update their books?
Sometimes our clients choose to take money out of their own pockets, and continue to charge their customers last year's prices. As long as they can stay busy enough, the ever smaller profits they earn will allow them to scrape by until they get around to printing new price books.
Most of the time our clients take a hard look at the numbers, and realize that they cannot afford to wait. They calculate their profitable prices, and they print the new books.
And how do their customers respond to the new price books?
They choose Task B because it saves them some money over Task A, and offers better benefits than Task C. They don't even notice the price change. They don't notice that the new price books give the business the few dollars more that it needs to keep running efficiently. They just notice that they had a choice that saved them money and gave them what they wanted.
Now, if you truly feel that your company offers good value to your customers and you're making plenty of profit at exactly the price in you current books, then don't print a new set of price books. But just about everything costs your business more today than when you last printed your price books. The fear that you should feel when considering new books is not that your customers will object. You should fear that your business will become unprofitable and weaker because you aren't charging the right amount.
Your employees who don't do a good sales job because they are afraid your prices are wrong could be right, but for the wrong reason. Out of date price books are a hazard to your business. If you're books don't reflect your real profitable prices, your employees' future is at risk too.
We have found that the businesses that are confident in the value they offer their customers are willing to print that new set of price books when the time is right. They share that confidence with their employees, so they are not reluctant to sell the correct job to the customer. Balancing your profitability with the value your business offers can reduce the fear associated with your pricing for both management and your field techs.
So, if it's been a while since you printed new price books, open up Numbers Cruncher and the Price Guide, and get your up to date books on the street. Be sure that your techs understand the value of the quality service you offer. This will translate into happier, more productive techs, satisfied customers, and a stronger business.
of Mike's experience working with hundreds of companies
like yours to help you achieve your own business
Nexstar Legacy Foundation to Award
$42,000 in Scholarships
$42,000 in scholarships ranging from $1,000 to $6,000 each will be awarded to students pursuing careers within the plumbing, HVAC and electrical industry. The Nexstar Legacy Foundation is now accepting applications for management and technician focused scholarships through March 31, 2012 for the 2012-2013 academic year.
"The vision of the Nexstar Legacy Foundation is to inspire people to discover the prestige, earning power and stability of careers in the plumbing, HVAC and electrical industries by being the leading resource for information on careers and training, as well as a source of financial aid," said Scholarship Committee Chair Julie Wieman of MacGregor Plumbing & Heating, Harbor Springs, Michigan. "This year we are pleased to offer four additional scholarships thanks to the generosity of our members and vendor partners."
Scholarships will be awarded to students based upon merit, chosen by a scholarship selection committee comprised of industry leaders both inside, and outside of Nexstar Network.
Named Scholarships include:
$10,000 in scholarships will be awarded in memory of Master Plumber John J. MacGregor of Harbor Springs, MI. MacGregor was a huge proponent of young adults entering the trades, and his scholarship will support a student with the desire to learn.
The $5,000 Barnett Scholarship is named for a company that is industry-ranked as one of the nation's leading distributors of over 40,000 Plumbing, Electrical and HVAC products.
The George Brazil Scholarship for $5,000 is named for a plumbing contractor who built one of the largest franchise operations in the plumbing industry, George Brazil Services. Brazil was also one of the founders of Nexstar Network.
The $2,000 Jill Pomroy Reed Woman in Business Scholarship was named in memory of marketing expert Jill Pomroy Reed and is available to women who are planning a career in marketing in the plumbing, HVAC or electrical industries.
Donors outside of Nexstar Network of the Nexstar Legacy Foundation are welcome to contribute to the organization. Donations are accepted for existing scholarships and the creation of new, named scholarship, at a minimum $5,000 level.
The unemployment rate has fallen for five straight
months to 8.3% in January. New jobless claims have
fallen to a four-year low, and the S&P 500 has gained
27% since October to the highest level since 2008.
The Economic Cycle Research Institute still predicts
another recession will start this summer.
The Fed expects there to be very low growth for at least
the next two years.
We are seeing service
industry materials price increases over the next few
months of 5% to 10%.
The unemployment rate has fallen for five straight months to 8.3% in January. New jobless claims have fallen to a four-year low, and the S&P 500 has gained 27% since October to the highest level since 2008. The Economic Cycle Research Institute still predicts another recession will start this summer.
The Fed expects there to be very low growth for at least the next two years.
We are seeing service industry materials price increases over the next few months of 5% to 10%.
Call 800-841-8542 now so we can answer your questions
NSPG, Inc. PO Box 1168, Manahawkin, NJ 08050