When you are struggling to sell your higher end products, introduce less expensive options. You will be surprised to discover that your clients still purchase the more expensive goods. The response results from a psychological phenomenon called the Law of Contrast. When two options are presented side-by-side, the law of contrast reveals that people will choose the preferred option even at a higher price.
Things are tight and still getting tighter. How much can we cut our already lean bids and still get the job? If we eventually win the bid, can our crew feasibly get it done given the M-L-E (material, labor, equipment) ratio so common these days? If we unfortunately forgot something critical in the estimate, is there enough “fat” somewhere to balance the loss or will the profit column have to take the hit? What if four “weather days” in September turn unexpectedly into 14 come October?
Since 2007 when the nation’s economy began sliding into recession, warning signs started pointing to the kind of thing that happens when unemployment begins to rise. Notably, there has been an increase in “shrinkage” - everything from break-ins to white-collar theft.
As new construction starts plummet, many builders have begun shifting their business from new construction to remodeling. It’s easy to assume many won’t understand remodeling. But make no mistake that some will not be worse, but actually will be better business operations than their more experienced remodeling competitors.
About a decade ago I attended a seminar by businessman and author Jack Stack that remains vivid in memory as filled with uncommon common sense. Stack is known as the father of “Open-Book Management,” a methodology centered around sharing financial and decision-making duties among all employees.
Back in the prehistoric days of the Web (circa 1995), I convinced my family that our business needed a Web site. It was a bunch of money back then to create a Web site and to have it hosted by a company.
Several years ago I authored a training manual titled “Essentials of Profitable Wholesale-Distribution” for the American Supply Association and National Association of Wholesaler-Distributors. While doing research for the book I came across some information that startled me. Various business consultants insist that more businesses fail because of cash flow problems than due to unprofitability.
The vast majority of roof leaks occur at flashings, penetrations and terminations. Regardless of the roof covering system, these locations become the most critical points of proper weatherproofing. In this respect, SPF systems are no different. This article provides proper detail recommendations for SPF systems at the most common flashing and penetration locations.
Contractors come in all sizes and shapes but there are four distinct stages that many fall into. I like to refer to theses stages as wonder, blunder, thunder and plunder. Let’s take a few minutes and talk about each and how the economy will impact contractors in each category.
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