Contractor 20/20 Offers Tips on How to Build Value in your Business
Note: this was originally a post I made to the ServiceRoundTable.com about building business value.
I have a client who routinely buys companies that are going broke. The first thing he does is raise their prices up to his level where he can earn a 10% net profit. He has observed that for every 20% he raised prices, he loses 10% of the prior customers. What is amazing is how much profit the previous owners lost and personal heartache they endured because of money trouble. It is shocking how many college opportunities were wasted, how many vacations were never taken, and how many early graves were opened. All to please the ungrateful customers who refused to pay them properly and employees who refused to put in a fair day’s work.
In the long run, the free market forces the price and staff changes that the prior owner refused to make.
It’s unfortunate, the needless pain that is distributed in the process.
Contractor 20/20 can help you build business value through many different marketing techniques that will change the way you look at promoting your business for years to come.