This week the Harvesters want to remind you about the importance of having a renewal process for all your contracts.
Do you just renew contracts with no price increases? Have you increased your price in the past and then lost the contract? Do you renew your contracts well in advance or wait until the last minute?
These questions and more will be covered in this weeks video clip. If you have any questions please feel free to email The Harvesters. They’d be happy to help.
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[email protected]
Head Harvesters Bill Arman and Ed Laflamme hoping these brief videos help you, “Harvest Your Potential”.
The most important part of the renewal process is to examine your current bottom line and plan on maintaining and/or increasing it to the level necessary to cover all future costs and return an acceptable profit. Many lawn maintenance contractors I know have been lulled into a false sense of true costs as it impacts their net profits because of the last 18 months of lower fuel costs. They have not been preparing for the inevitable price hikes by gradually building in yearly price increases. As a long term investor in the energy sector I know that when fuel costs begin to rise it will be rapid (and if a supply disruption occurs quite sudden).
Such an event will leave those not prepared facing a fast drop in profits.