Short YouTube talk by Louis Massaro focused on profitability through pricing and marketing discipline. The speaker argues that low prices can inflate marketing costs and labor percentage (e.g., labor at ~40%), eroding margins, and recommends strategically raising prices rather than using low-price as a primary strategy.
Profitability is about margin. And if you're spending way too much money on marketing because when you pay for it, they hit your page like, ugh, I don't want to go with them. And they leave. And then when you finally do get the people on the phone, now you've spent double the money that you need to spend overall for marketing. But now you're like, we got to give them the low price because they're not going to book otherwise. And there are times to do specific calendar based pricing and adjust your pricing strategically, but just to lower your price. To think that's your strategy, that's not it. Now when you raise your price, your salespeople are going to be like, why are we raising the price? It was so much better when it was lower. Yeah, but I got bills to pay. There's only 100% of the pie. If you got labor percentage at 40% because you're not charging enough for your moves, that doesn't leave a lot of money for other stuff. Some people have the labor percentage much higher. Do we want to lower the price? The lower what we pay. Movers not going to work out too well. Probably have a mutiny on your hands. So what do we need to do? We need to raise the prices.
