Phil Risher explains how his home-service business alternates between growth years and profit years. In growth years, he accepts lower profits to buy trucks and hire staff, using annual price increases like last year's 15% to fund the next cycle.
15% price increase.
Two new trucks.
How do we strategically grow? So that's where we decided, and we're very conscious of it, that we alternate years. One year, we know that we're getting the phone calls, we have the leads, but we don't have enough crews. So we'll invest in one or two trucks, invest in more sales reps and more field technicians. And that's a growth year. And we know that our net is going to be lower that year. And we increase prices every year. But like, the next year, we'll do like a higher price increase. Like last year, we did a 15% price increase. And we did that so that this year we can buy two new trucks and add them to the fleet. Every year we alternate.
