Busy? Oh! You are busy. And, thank goodness for it. But, we marvel at some basic tenets of the business that often get overlooked.
Here are 5 that may slip by you:
Who exactly is your customer? Do you have a precise handle on the project size and client that stirs the drink? Or, are you comfortable taking the ones you get? A recent analysis of where your 20% of revenue stratums lie can tell a very revealing story. Could you target the best customer better?
What gets sold to them? We find most CI don’t have a handle on what categories or being sold and the trends and how they can better the mix by category.
Who sells and how can you increase their productivity? Finding and keeping rainmakers who consistently produce multi-million results is hard in this business. Take the challenge of how you can get 20-30% more from each salesperson. What can you remove from his/hers plate to get them more productive?
What do we really make money on when it comes to products? The old adage is your margin goes out the door on the back of your installers. But, which products are the most profitable? Do you make great choices when it comes to product assortment?
Is your labor effectiveness in-line with your bidding methodology? Habit takes over; you bid what you always have bid. And, you get the results you always have gotten. Project overruns, you rarely beat the estimated labor, and then the one really bad project slams you. Does every project over $15K get an autopsy for profitability and efficiency improvement?
Seems like basic stuff and it is. But, most CI companies are not built to clearly understand these 5 tenets.
When working with $2MM to $10MM luxury CI businesses, we know the business centers around 30 to 150 projects. So getting to the bottom of these questions is not difficult.
What is; is having plans to execute on each of them and, managing their outcomes.
Here’s to understanding more and keeping it vital.
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