Adam Sand explains how supply and demand dynamics affect service businesses: having many leads and a strong sales process can still fail if crew capacity is insufficient, while too many crews and too few jobs leads crews to seek other work. He highlights strategies such as recruiting more crews and adjusting contract terms and pricing to attract and retain labor.
The supply versus demand curve. Like, there's a supply and demand of the market and the number of leads. So along here, you want to make sure if you have a great market with tons of leads and a pretty good sales process that puts out a lot of jobs, but you don't have many crews, your calendar goes out. So in theory, you're not meeting demand. You could also have a situation where you have a great market, tons of leads, but a poor sales process, and you're trickling jobs into your crews. You don't have enough work to keep your crews busy, so then they go seek other work. So, so if you end up in this situation where you've got a great market, lots of leads, a good sales process, you have a good close rate, but you don't have enough crews, well, one, there's the action of going to get more crews, but then how effective that action is is going to depend on your contract terms and your rate sheet price. You might find that if you have enough crews to do the work because you pay a little more, you might not have as big of a problem finding the labor to do the work. Your ability to attract and retain crews is huge. Because if you have lots of crews and not enough work, it's the same problem. The crews are probably still going to get the work, but they're going to get it from a different funnel, they're going to get it from a different roofer.
