A short excerpt from a Chris Collins YouTube video advising entrepreneurs to focus on profit per hour rather than gross revenue. Collins argues that chasing gross leads to chasing traffic and discounting, which reduces earnings per hour; instead, understand and optimize the effective labor rate and profit generated for each hour sold.
Most of the time, what happens is you're chasing gross, and to chase gross, you chase traffic. And to chase traffic, you discount. And so you end up making less per hour of labor that you sell. And the secret is to understand how much profit you make for every hour of labor you sell, not to just have gross. Stop chasing gross and start chasing profits. And get. Get educated on how you do that and how you. You know, the effective labor rate matters more than anything else.
