Too Much Work

Many of our Dealers are reporting their businesses being overwhelmed with customers calling them to have work done. This is primarily due to people staying around the house more and wanting to do things to spruce up the looks of their home.

Many times, the knee-jerk reaction to having too much business is to expand. This requires more employees, equipment, trucks, etc. and is always an option when you see your business become popular. Another option often overlooked however is to raise prices for the work you’re performing. The laws of economics state that as a business raises their prices, they will appeal to a smaller pool of people. Many Dealers find this concerning as they “don’t want to lose out on the business”. The conundrum lies in that they already have too much business so losing out on a few projects may not hurt them as badly as they think.

If you raise prices without increasing overhead, any increase goes directly to your bottom line. Dealers have increased prices from $5.50 to $6.00 per square foot on a standard installation (that’s less than 10%) and now find that for every average size driveway of 1000 square feet, they put $500 directly to their bottom line. Given a single crew operation can complete 2-3 of these type jobs per week, Dealers can see an increase of $40,000 or more per year.