· Year-Round Service Business ·
The Year-Round Business
You have a business that doesn't experience anomalies or down seasons.
Because you only provide one service, you fall into the one trick pony blueprint.
Labor & Materials
Sometimes, a one-trick pony business fails to fully identify their labor burdens. As a result, their perceived labor costs are inaccurate, which affects anything they are connected to, such as pricing. Because the margins and mark-ups are not at the correct percentages for labor on any work or estimates, pricing on services and service packages is typically wrong, with “wrong” meaning “not priced to achieve maximum profit.” In addition, one-trick-pony businesses often don’t have their margins and mark-ups on their materials at the accurate percentages.
Route set-up can also be an issue for one-trick ponies. To maximize your profit, you must set up your routes efficiently, not only in terms of creating the route but also in terms of managing the skill level of the crew on the ground. Depending on the services provided and the customer base, some routes may require more attention to detail than others. A well-established route can bring in 20% profit or more versus a merely efficient one that brings in 15% profit on average or even creates a loss if not priced properly.