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How Can You Be Extremely Busy and Still Go Out of Business?

May 2, 2022

 

We hear it all the time.  I am so busy I will never be able to catch up, even if I was able to hire an additional 20-25 employees. The big question to ask yourself is, how can you be so busy that you cannot see straight that your company goes out of business?   The real reason is that many people are working off old prices from 2-3 years past and have not been able to raise their prices to keep up with the current changes.   MOST people do NOT have a true understanding of what their actual costs are.    Many people tell us “that is all I can sell it for” and they accept the order assuming they will make a profit or make up for it on a future order.

My father would roll over in his grave if he knew that most people calling the association office and do NOT know what their real costs are. Supply chain issues, rising diesel fuel costs and the costs associated with finding and maintaining a strong labor force affect your prices on a weekly basis.  To not keep up with these on a regular basis is the first step on closing the doors, permanently.