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Business Solutions for Maximizing Profits July 2006
For over a dozen years, NSPG has been providing the tools that allow contractors to increase profits and minimize business hassles. With our simple-to-use-tools, you can make being a business owner what you always wanted to it be - successful, profitable and rewarding.

I Need to Charge How Much?
One of the things we like to do at our Numbers Cruncher seminars is to ask the attendees what they charge per hour.  After we collect the numbers, we select a volunteer from the audience and run their actual numbers. 

One of the first times we did this exercise, we found a company that was charging $75 per hour including a hoped for 5% profit.  After Crunching their Numbers, they agreed that their profitable selling price was really $243.20/Hr including a 25% profit.  They immediately said that they could not charge that much because they would lose half of their customers.

Last month we addressed this type of situation this way:

Perhaps the worst critic of your accurately calculated price may be you.  Many business owners Crunch their Numbers and are immediately on the phone to tell us that they could never charge that much.  Their customers would all leave them...  Do you want to cut your price and lose money on every job, or do you want to charge a profitable rate and offer your customer high quality service that matches your price??

At the seminar we took a look at a few very simplified scenarios to see the cost of the worst case scenario of losing customers due to a price increase.  Here's what we found.

Effect of Price Change from $75/Hr to $243.20/Hr

$75/Hr   $243.20/Hr
Productive Hours 3000   2250 1500 750
Productive Hour Loss %     25% 50% 75%
"Labor" Sales $225,000   $547,200 $364,800 $182,400
Material Sales $75,000   $56,250 $37,500 $18,750
Gross Sales $300,000   $603,450 $402,300 $201,150
Profit % 5%   25% 25% 25%
Profit $15,000   $150,863 $100,575 $50,288

This chart illustrates the choice you have between working maximum hours at low profit, or working reasonable hours at a normal business profit level.  As you can see from the table above, even the worst case scenario (losing 75% of your hours sold) while charging a profitable rate is better than the status quo.  Most low charging companies can make a reasonable profit while working far fewer hours.

Most of our Numbers Cruncher users who raise their prices to profitable levels in their Flat Rate Price Guides see very little customer loss.  In fact, many find that the higher level of service that they can afford to provide wins them more business. 

If you control your costs and accurately Crunch your Numbers, no one should question your prices.  You're in business to earn a living.  The only sure way to do that is to know your costs, add a reasonable profit, and get to work.  It's your business, run it your way.  Let other people set their own prices too low and work themselves out of business.

If you need a hand setting your business numbers, email Mike Conroy.  He can help you combine your current numbers with your target company size, so you can set measurable benchmarks and build your own right-sized profitable company.

Measure Monthly, Adjust Quarterly
 & Achieve Annual Profit Goals

 On-Line Resources
The EPA has a web site with a PDF document highlighting easy ways to save water.  This high quality document could be a good sales tool for your technicians responding to leaks and toilet service calls.  Print it out, and keep copies in all your trucks.


Czech pig farm becomes energy source.  Talk about thinking out of the box!  Opportunities for new technologies will continue to grow.  Are you going to take part in profitable new technologies?  


In This Issue

Phone 800 841-8542
Freebie of
the Month

The freebie of the month is a web site or product that we feel gives you some-thing worth looking at or using that costs you nothing.

This month's freebie may be practical for some of us who will be heading out on vacation this summer, and may just provide some entertainment for others.

This month's freebie is a how-to from a site called wikiHow.  This site is a collection of step by step instructions for a wide range of everyday and unusual things.  One of our favorites is how to erase marks off a dry erase board.

Here's one of this month's featured articles.

How to Escape
from a Bear

1. Avoid the bear.
2. If you see a bear, turn    around and move away.
3. Stand tall even if the bear charges you.
4. Know your Bears.
5. Climb a tree (maybe).
6. Play Dead (sometimes).
7. Fight Back.

Before you head out into the wild, go to wikiHow and read the entire article.


House Magnet
Van Magnet
Business Card Magnet
Magnetic Truck Sign

Coming Soon

Numbers Cruncher -- Upgrade Now                                                      
A major upgrade to Numbers Cruncher was released last year.  We'd like to remind all registered users that they can upgrade to this new version for a special upgrade price.  All Numbers Cruncher users are advised to upgrade now to take advantage of free version updates via the Internet plus continued free technical support available in the new version. 

Free support for earlier versions of Numbers Cruncher will be phased out over the next few months.

You can get more information about Numbers Cruncher or order your upgrade at


The next Money Masters® will be at the Crowne Plaza, White Plains, NY on September 8 & 9, 2006.

Hear the Frank and Lindy Plumbing JingleFrank and Lindy Plumbing & Heating Service will host the live case study where you will have an opportunity to freely explore their shop. They have grown 175% over the last three years. Frank and Lindy technicians have paid health insurance, vacations, holidays and training. This owner takes four weeks of vacation and has additional time to spend with family and in other interests.

Frank and Lindy operates at a NET profit well above the industry average.  Only a short time ago they were new construction focused, high sales and little or no profit. You’ll hear how the owner was on the verge of putting the padlock on the door and walking away. Come see and hear how you don’t have to do it alone. Here are answers that are proven to work from an owner who has been in your shoes.

I am looking forward to visiting Frank and Lindy Plumbing & Heating Service along with all of you who decide to attend this Money Masters.

I have worked closely with their management as they made their transition to the profitable business model that they have now.  I know we will all learn a great deal from both the seminar sessions and the visit to Frank and Lindy Plumbing & Heating Service.

I hope to see you all there.

Mike Conroy

7:00 - 7:30 a.m. Breakfast & Registration
7:30 - 12:30 Money Masters Seminar
12:30 - 1:30 Lunch
1:30 - 5:30 Tour of Frank & Lindy Plumbing & Heating
6:00 - 10:00 Dinner & Entertainment
7:00 - 7:30 a.m. Breakfast
7:30 - 12:00 Money Masters Seminar
12:00 - 1:00 Lunch
1:00 - 3:00 Seminar, Nexstar® Showcase
Register for Money Masters Here


Numbers Cruncher and NSPG Flat Rate Price Books training


Portable Desk for forms and invoices
Portable Desk

     HVAC Service Invoice   

Ever Wonder

Where Did the Money Go?


Call 800-841-8542 now so we can answer your questions and show how we can help you build a more profitable business.

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NSPG, Inc. PO Box 1168, Manahawkin, NJ 08050
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