20% Profit Ladder
Contractor 20/20 takes you through the steps to ultimate sustaining profitability in your business.
1. Track customer satisfaction & customer retention to determine opportunities for price increases if satisfaction is over 75%.
2. Start tracking the 10 key numbers that tell you how well you utilize your leads and where the money goes. Worksheet 1
3. Start tracking the lead sources and the cost of those leads. Worksheet 2 & 3
4. Price up gross profit to be 58% on service; 51% on installs; at 50% billable hourly efficiency; 75% billable hours on installs.
5. Determine what level of revenue is needed to put overhead in proper balance with the sales level both service & installation departments.
6. Maximize sales to past customers using proven direct mail, magnets & window thermometers.
7. Utilize well tested proven promotions to sell off unsold time to new customers.
8. Determine the actual new customer costs and adjust new customer prices to fund those costs.
9. If your yellow page new customer cost is over $50, consider using layouts that have a better national track record.
10. Utilize proven radio, TV and cable to maximize internet results, yellow pages, direct mail and newspaper response as well as maximizing the direct results from the medias themselves proven to drop new customer cost up to 35%.
11. Set up a system to catch technicians stealing your customers and materials.
12. Set up systematic marketing review to refine and correct for market changes to get pricing, staff, marketing sales and profit goals.
Contractor 20/20 is your expert at advertising and marketing your business for higher profits, more customers, and keeping you ahead of the competition. Call Mike Morosi today and get him on your team, it’s the best move you will ever make for your business.