Tracking your sales and comparing them to your profit-based goals is an easy way to measure your company's performance.  You than can use the What-If Analysis in Numbers Cruncher to track your progress.

Remember that a monthly review of your numbers is critical for maintaining profitable operations.  You must compare your real life numbers to Numbers Cruncher calculations to be sure that you're hitting your profit targets.  

Measure Monthly, Adjust Quarterly
 & Achieve Annual Profit Goals

Call us at 800-841-8542 to schedule a Numbers Cruncher Review so you can be sure that you are making the profits you need every day.       

This is a very valuable technique and is used by some of the most profitable shops in this industry – it’s also one of the best keep secrets. 

Let’s use a discounted water heater install as an example. 

Say your 40 Gallon 5 year water heater has a selling price of $800 which includes a 25% profit - you want to earn $200 pre tax profit.  However, your competition is selling a similar water heater for $600. 

This means if you cut your price to meet your competitor’s, you would lose all your profit. 

Here's how you can handle the price issue.

1. Build another water heater job in your book and call it the Budget Water Heater. You only give it a one year parts and labor warranty. If the tank fails after the one year period, the MFG will replace the tank but you can charge for the installation.
2. You still keep the price for your standard 40 gallon 5 year heater at the $800. But the warranty includes the replacement cost for the life of the MFG tank warranty. This provides more value than your competitor. (Get a full 5 years of protection for just 11 cents per day!).
3. You sell the Budget heater at $600 and gain a new customer to market directly to. 

Let’s say that you estimate that two out of ten clients will opt for the budget heater. So you plug in the loss of $200 per Budget Water Heater sale into your Numbers Cruncher Budget. Assuming you were to sell 50 budget heaters, you would plug $10,000 into Special Customer Discounts in Numbers Cruncher.

This shows how Numbers Cruncher and the Price Guide can work together to make your business more profitable.

The prices we used may not reflect your prices but the concept is the same. Always Crunch your own Numbers before setting your price.

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Mike Conroy (left) with Kenny Chapman
at the Super Meeting in Atlanta

I'd like to thank everyone I met at the Nexstar Super Meeting for the warm welcome and extreme interest in NSPG.   

Anyone who did not get a chance to speak to me because of the crowds, feel free to give me a call (800-841-8542).

Mike Conroy