As the economy appears to be slowing down again, business basics become even more important. Maintaining the fiscal discipline and successful sales techniques that you have used to survive the last few years is paramount. Getting your business processes in order while giving your field techs the tools they need to succeed is critical.
Crunch your Numbers
As with most businesses, you’ve probably redone your numbers at least once already this year so you’re reluctant to put the time into doing it again. But, if your productivity has fallen with the economy, you need to know, and to make adjustments to maintain profits. A few minutes with Numbers Cruncher or whatever tools you use to establish and adjust your prices can really pay off.
When things slow down, many businesses feel the need to lower their prices to compete with the lowest price, unprofitable businesses in their area. Loss leaders can be used to get your foot in the door and compete on price where necessary, but they must be used intelligently.
We often hear from business managers during their Numbers Cruncher reviews that they need to cut their prices across the board to compete. After a brief conversation, the conclusion is often to build the cost of a few specific loss leaders into the budget, and offer discounts only on these highly competitive items. When you know your costs, you can safely make the price changes you need without jeopardizing the health of your business.
Get your number right with Numbers CruncherOnce you have your current numbers in hand, be sure to document them. If you get price complaints or are accused of price gouging by a disgruntled customer, you’ll be glad you have documentation to back up your prices.
Hone your Sales
Do not skimp on the tools and training that can make your techs more effective in the field. Your ongoing technical and sales training efforts are designed to improve your techs’ job skills which in turn improves job quality, customer satisfaction, and the bottom line. Keep it up even in down times.
If you don’t do it already, now is the time to work with your suppliers to optimize your tools and techniques for selling, installing, and servicing their products. Many manufacturers can provide free training for your techs to enhance their job performance. They often provide free sales materials that you can combine with your flat rate books that can make the sales process easier and more successful for your techs.Control prices to increase profits
If you don’t know where to start to get free or low cost training, talk to your supply house
. They deal with manufacturer’s reps every day. If they can’t help, groups like the PHCC, ECBA, Nexstar, and QSC have industry relationships and training resources.
After the last few years, dealing with a slowing economy should be a manageable challenge. Remember the lessons learned while surviving the recession, and continue to work on the details of your business. Success depends on understanding and controlling your costs while maintaining and building technical and sales skills.