Garage door industry magazine for garage door dealers, garage door manufacturers, garage door distributors, garage door installers, loading docks, garage door operators and openers, gates, and tools for the door industry.
Issue link: https://idoi.epubxp.com/i/177021
SaleS&MarkEting; by Dan Apple The Apple Group, LLC Five Things to boost Profts overnight As a consultant I usually ask potential clients how their businesses are doing fnancially. Most of the time the answer I get is about their sales volume. While recognizing that is important, what I want to know is more specifc which requires the follow up question, "that's great, but how are your profts?" It is rare that I hear them described as "fantastic", more common to hear "we're doing okay" and occasionally I hear "not that great." So the natural next question is why? What are you doing about improving profts? Those answers do not pop out quickly and more times than not the perception is that increasing profts is a slow and diffcult task. Maybe for some but it doesn't have to be. This article is the frst in a series about fve ways to boost your profts overnight. There is no magic, however some would say just a blinding glimpse of the obvious. You'll have to be the judge. Here are the fve things I propose. 1. Raise Your Prices 2. Reduce Your Cost of Sales 3. Change Your Product Mix 4. Increase Sales Quotas 5. Eliminate Crappy Customers Either way, as the owner you hold the gear shift in your hand. You can remain in lower gears, idle in neutral or shift into the next gear up. You choose, but understand that the single easiest, fastest way to increase your profts is to raise your prices. It can happen on the spot and does not cost you a thing. If successful, the beneft to your bottom line is immediate. You've worked hard to build your brand, and it has value, do not be afraid to charge accordingly. Market price What is the market price for garage door products in your area? Sure you can compare the big box stores easy enough but gathering market information about other area door dealers gets a bit more complicated. Yes, you can spend time shopping your competitors but in the end what really matters? Your price. That's it. Market price should be where you want it to be relative to the product's value and the proft you need to make. Of course you need a baseline of knowledge to determine the product's relative retail value This article will focus on my favorite, raising prices. Nothing to fear but fear itself When FDR spoke those famous words he had no idea they would apply to garage door dealers! Why are dealers reluctant to raise prices? Basic fear I suppose. Fear of rejection, fear of failure, fear of competition and the biggest of all, fear of the unknown. "What will happen if I raise my prices?" Well that depends on how your organization markets its products. If you are value driven, selling the increase is not diffcult. If you are low price driven, you will more likely face an uphill battle. 38 International Door & Operator Industry™ which you can probably get from the manufacturer. Some products will yield higher margins than others. But rather than focusing on your competition's selling price, spend time building value in yours. The market you are active in will let you know what prices will be acceptable depending on the value you offer. Do not be afraid to set an all time high price point, just be able to sell it. If you are the best garage door dealer in town, translate that into why your higher price is worth it. Determine a minimum gross margin for each of the products and services you sell and stick to them. Publishing Continued on page 41