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.
Mahfuz Alam
Mahfuz Alam brings over 12 years of expertise in digital marketing within the home service industry, specializing in areas such as plumbing, HVAC, roofing, and electrical services. As a seasoned professional, Mahfuz has honed his skills in crafting effective digital marketing strategies tailored specifically to the unique needs of home service businesses. His comprehensive understanding of industry trends, coupled with his hands-on experience, allows him to navigate the ever-evolving digital landscape with precision. Mahfuz is dedicated to helping home service professionals thrive in the digital realm, driving growth, visibility, and success for their businesses. Through his insightful strategies and unwavering commitment to excellence, Mahfuz continues to make a significant impact in the home service industry, empowering businesses to reach new heights of success in the digital age.