Why you're wasting your money buying the latest tools.....
Yeah right - how can buying some of the latest and greatest wiz bang tools that make my job easier and faster be a waste of money?
Sounds crazy doesn't it? But bear with me for a second....
So you bought this wiz bang tool that's going to help you do a certain type of job in half the time that the same job takes you to do now.
Sounds like a good idea doesn't it? Same job done in half the time, what could possibly be wrong with that?
Well, that all depends on the way you currently run your business. If you charge by the hour you've got problems..........Let me explain...
A job that you used to do in 2 hrs you can now do in 1 with your new wiz bang tool. So if your hourly rate is $100/hr, then the average $ sale for that job used to be $200. And now because you invested in a $1,000 wiz bang tool, your average dollar sale just went down to $100 for the same job. That's half as much as you used to get paid for the same job! But the bad news isn't over just yet....because remember you've also invested $1,000 of your hard earned cash to buy the new whiz bang tool.
So now you're getting half the money you used to get for that particular job, plus you're down $1,000 for the wiz bang tool!
But.......it doesn't have to be all bad news. Let's just imagine you quote your plumbing jobs. You used to quote the job at $200 and now, with your wiz bang tool you bought for $1,000, you can do a $200 job in half the time it used to take you. Ok so this changes everything.
Because now your tool is an asset to your business and has a return on investment. Because now after you've done 10 jobs with the new wiz bang tool you'll be $100 in front on every job.
So if you used to do 4 jobs in an 8 hr day without the wiz bang tool. (Total of : 4 jobs x $200 in 8 hrs = $800 for the day.)
Now you can do 4 jobs x $200 in 4 hrs (half a day) = $800
Do an extra 4 jobs and make $1600 for the day! Thats's double your money!
Now your new wiz bang tool is actually making you more money! Why else would you buy it?
The moral to the story: - if you quote your jobs properly, buying a wiz bang tool that'll allow you to do the same job in half the time is a great investment. It's also good for your customer because you've taken up less of their valuable time but they still get the same outcome.
HOWEVER - if you charge for your time, financially you're better off NOT investing in wiz bang tools.
Because you get paid for your time, there's no advantage of the return on your investment.
The only question you really need to ask yourself is are you happy doing things the old way and having your business stuck in the past? Or are you ready to embrace the future and be able to invest in better ways of improving your efficiency and customer satisfaction? And what about staff satisfaction, the youth of today want to work with the latest wiz bang tools, if you're not investing in them, you'll find it increasingly hard to attract and keep good staff.
There are many many more advantages of using a quoting system in your business, but I'll have to go into those at another time.
If you'd like to know more about a customised quoting system especially designed for you business. Click here.