This will be a series of 7 separate post on upside contractor leverage.
First, lets talk about what upside leverage means in your contracting business. I am talking about how you can take in investment or a activity or even an opportunity with the people all around you and make it bigger,better and more profitable without spending any more money.
Think about what you or everyone in your company does everyday, now think and analyze how you can get highest performance,growth and profitability from there actions.
Let’s start my series off with marketing first. Marketing has the most upside leverage in your company because of your fixed cost. Think about the ad you run in the newspaper at a fixed cost. Does it change the cost if you receive 1 lead or 5 leads or 20 leads? The fixed ad cost is still the same.
Does your fixed ad cost change if your salesperson closes 3% or 10% or 75% of the sales he or she goes on.Nope!
Think about your last postcard mailing, did your fixed cost change when you received a 2% -10% or 45% response? If they converted 5% or 20% to sales did it change your fixed cost?
Think about the last home show you were in and your fixed cost? If you attracted 5 customers or 100 customers a day you still have the same fixed lead cost even if you close 1out 10 or 1 out of 50.
What I am saying here is to figure out how to get 5% or 20% more leads or close 5 out of 10 sales or 3 out of 5 sales. Or increase how many times your client buys from you in a year. Instead of 3 times a year how about 5 times?
I want to give you a day to think about and look into your contracting business and see what I wrote above, and how it can be used to measure your results.
On Tuesday I am going to show you how to find ways to make this work in your contracting business. How easy do you think this will be? Stay tuned!
Happy Selling
Glen Kohlenberg
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Hello Glen Kohlenberg. I look forward to following your blog and seeing your solutions.
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