Mike Andes advises an unprofitable $1.8M business to shift to recurring revenue, raise prices 20%, and build a subcontractor bench to stay lean. He says 90-100% of customers will accept the new packages.
Right now you have projects. I'm not saying we should cut them out. I say we should.
Increase the prices by 20%.
Unless you are part of the subscription, you're part of the home team. If the home team is able to focus on their recurring revenue and their subscription model instead of these big one time projects, they'll be able to move away from needing all of this shop space and this real estate and all this inventory and custom pieces and projects. But more importantly, to do that we've got to build a bench, a backup, a bunch of different subcontractors that we can tap into so that when big projects come along, we can still sell them the customer and get our markup and get high profit margin on those jobs. I would send an email and a.
Text message to all of your existing customers saying, hey, here's the package. Here's what includes.
By the way, one of the things now is 20%.
Off of all of our prices.
By doing this, I think 90, 100% of people are going to accept this new package and get more recurring revenue coming into the business. The home team is the brand.
It is 100% the go to.
No one remembers. Is it bec?
Yeah, no one remembers that.
No one remembers. Don't be so ashamed.
