It’s Not New Advice, It’s the “DO” Advice that Wins!
In this issue ...
* The Best Advice * 365 words less than a 2 minute read.
When you spend as much time and get as many at-bats as we do, working with dozens and dozens of companies, you can’t help but discover new wrinkles, new ideas, new opportunities for giving advice. These are shiny objects in the coaching space – new advice the client hasn’t heard from us before. We are tempted daily to share new ‘you should’ advice.
But new advice is just more clutter on all the other advice. What is the best advice? DO something. Put a worthy piece of advice to work. Make it happen.
Our #1 recommendation to virtually every CI we meet is, “Raise your prices”. Most integrators do not charge enough for the goods and services they provide. The fastest way for them to make more money is to charge more. Simple.
Knowing you should charge more, though, doesn’t get the job done. You need to DO something. The advice is to “improve margins”. But it’s taking the actions to fix them and keeping everyone accountable to them that is the “DO”.
There are multiple strategies, which are vividly revealed by the “mix and margin” metrics presented by our dashboards…
1) Implement and/or increase your parts allocation on every job 2) Instead of selling low-margin, entry level products, sell the higher-margin step-up 3) Add more labor to projects, either hours or dollars – an easy way is to increase your billing rate to 5x your wage rate. 4) Scrutinize every proposal that goes out the door. The proposal reviewer will always find a bit more than the salesperson chasing the next sale.