Business Discussion by Kip Northrup Blue Thumb Pond Expo

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Business Discussion by Kip Northrup Blue Thumb Pond Expo

  1. 1. START. Friday, October 11, 13
  2. 2. WHY DIDYOU STARTYOUR BUSINESS? Friday, October 11, 13
  3. 3. WHERE DIDYOU SEEYOURSELF BY NOW? Friday, October 11, 13
  4. 4. WHERE DIDYOU SEEYOURSELF BY NOW? Friday, October 11, 13
  5. 5. WHERE DIDYOU SEEYOURSELF BY NOW? Friday, October 11, 13
  6. 6. WHAT HAPPENED? Friday, October 11, 13
  7. 7. WHEN IT COMESTO FIGURING OUT WHERE WE'RE HEADED IN LIFE,WE NEVER STOPTO ASK A SIMPLE QUESTION, "WHERE AM I?" • We just keep marching forward, day after day, job site to job site, sale after sale, moving faster and faster but not really going anywhere. Eventually, at the end of our lives, we start to do some questioning. • In 10 years, what will you regret not doing today? Friday, October 11, 13
  8. 8. WHICH PATH WILLYOU CHOOSE? AVERAGE OR AWESOME? Friday, October 11, 13
  9. 9. AREYOUTOO BUSY TO BE AWESOME? • You've got a lot going on. • Sometimes when we focus on our dreams and try to take steps down the path of awesome, our wives cry in the kitchen. • Stay up 30 minutes after your spouse goes to bed or get up at 5 am before anyone else. • If your dream isn't worth 30 minutes, you've either got the wrong dream or you're just pretending you have one. • If the minimum you're willing to pay is less than 30 minutes, you'd better go back to average. Nobody gets up early on the road to average. • Either way, you are safe on the average road. See you at old. Friday, October 11, 13
  10. 10. LET ME ASKYOU A QUESTION • If you died today, what would you regret not being able to do? • Are those the things you're spending time doing right now? • Live a life true to yourself...not the life others expect of you. Friday, October 11, 13
  11. 11. WHAT DO WE NEEDTO DOTO TRAVELTHE PATH OF AWESOME? Friday, October 11, 13
  12. 12. FIRSTYOU MUST FIGURE OUT WHEREYOU ARE Friday, October 11, 13
  13. 13. WHERE AREYOU? Friday, October 11, 13
  14. 14. HOW DO WE DOTHAT? Friday, October 11, 13
  15. 15. Friday, October 11, 13
  16. 16. Friday, October 11, 13
  17. 17. START WITHTODAY. START WITH WHEREYOU ARE RIGHT NOW. Friday, October 11, 13
  18. 18. Friday, October 11, 13
  19. 19. Friday, October 11, 13
  20. 20. TODAY IS OCTOBER 10 • At least 30 days left • Then 120+ days to get ready for 2014 • What will you use these days for? Friday, October 11, 13
  21. 21. HOPEFULLY NOT THIS! Friday, October 11, 13
  22. 22. NOW LET'S REALLY START. Friday, October 11, 13
  23. 23. WHAT DO YOU DO IN THE WINTER? • Ever hear this question??? • I hate the assumption of this question! Friday, October 11, 13
  24. 24. WHAT DO WE DO AT BLUE THUMB? • New Catalog Layout/Design • Review every page of websites • Review results and plan new marketing campaigns • Facility maintenance • Reorganize the warehouse Friday, October 11, 13
  25. 25. FALL & WINTERTO DO LIST • Ideas come up in the season but there's no time to do. • Write them down and refer to them when the season winds down. • Assign an employee to each task. Friday, October 11, 13
  26. 26. WHAT'S ON OUR LIST FOR THIS FALL & WINTER? • Videos of ceramic vases running for website • Design a pump testing station • Meet with shipping company • Set up video area • Review instruction manuals Friday, October 11, 13
  27. 27. CONTRACTORS "TO DO" • General equipment repair & maintenance. • Clean it and paint it. A coat of paint goes a long way. • Organize your storage areas. • Organize your customer files. • Walk thru every step of your business and find the areas needing cleaning/organizing/updating. Friday, October 11, 13
  28. 28. CONTRACTORS "TO DO" • Financials: Pull out all your receipts and written checks and sort them by job. • Job name at top; expenses listed below. • Determine Gross Profit % for every job...more on this later... Friday, October 11, 13
  29. 29. CONTRACTORS "TO DO" • Marketing & Advertising: • What did you do for marketing/advertising this year? • What worked? • What didn't? Why? Friday, October 11, 13
  30. 30. CONTRACTORS "TO DO" • Marketing & Advertising: • Meet with your suppliers and find out what’s hot and new for next year. • What products/services can you add that will yield the highest profit? Friday, October 11, 13
  31. 31. CONTRACTORS "TO DO" • Marketing & Advertising: • Compose a letter thanking your clients from this year for their business. • In the letter include the new products/ services you’ll be offering for the upcoming year and specifically ask them to go to your FB page to like it. • In the letter customize it to their specific project and create a list of the things they’ll want to be doing to keep it looking nice. Offer your services should they want someone to do it for them. Friday, October 11, 13
  32. 32. CONTRACTORS "TO DO" • Marketing & Advertising: • Determine what home shows you’ll display at and begin your booth layout and design. • Again, ask for help from your suppliers. Friday, October 11, 13
  33. 33. CONTRACTORS "TO DO" • Marketing & Advertising: • Website: This is a great time for you to go page by page through your website and make updates. • Social Media: Add pics and update the info. Friday, October 11, 13
  34. 34. CONTRACTORS "TO DO" • Marketing & Advertising: • Visit each job site from this year and last and snap pics and video. • These can be used on your website and in your social media campaigns. • If your clients are home ask them if they would be willing to write a testimonial. Write it for them. Friday, October 11, 13
  35. 35. RETAILERS "TO DO" • Discuss with suppliers what products are coming out that are HOT. • Better to ask other retailers or a distributor because manufacturers think all their products are best sellers! Friday, October 11, 13
  36. 36. RETAILERS "TO DO" • Review the product lines you bought and see if they are yielding the GM% you need to remain profitable. • What products do you have still sitting around? • List these on eBay or Amazon to unload. Friday, October 11, 13
  37. 37. RETAILERS "TO DO" • Do a review on your top sellers or items you think people are price shopping you on and check your prices against the competition. • Are people leaving your store to make the same purchase online? • We can’t stop the internet; its here. But you don’t have to support the products that are being sold online at steep discounted prices. • Find products that have a strong MAP policy in place. And don’t just take the mfg’s word for it: do your homework. • Having a MAP policy and enforcing a MAP policy are two very different things! Friday, October 11, 13
  38. 38. RETAILERS "TO DO" • Create a checklist of things for someone to check for. • Ask a few family members or friends to come in and review your store. • Meet with you staff to address the items needing attention. • When you are in your store every day you tend to walk right past the things that need attention and never notice them. Friday, October 11, 13
  39. 39. STORE REVIEW CHECKLIST • How does the entrance look? Inviting? Clean? Clearly marked? • When you step inside does it feel inviting? • How clean are the floors? Have you vacuumed or mopped lately? Friday, October 11, 13
  40. 40. STORE REVIEW CHECKLIST • Are the windows clean and free of cobwebs? • How clean are the shelves? Are the products straightened? • Are there signs that clearly promote the services you offer? Friday, October 11, 13
  41. 41. STORE REVIEW CHECKLIST • How is the lighting? Bulbs need to be changed? • Twice a year go through and change out your light bulbs in the store…customers will come in and think you’ve remodeled! Friday, October 11, 13
  42. 42. ANY QUESTIONS SO FAR? Friday, October 11, 13
  43. 43. PART 2: GROSS PROFIT MARGIN Friday, October 11, 13
  44. 44. WHAT IS GROSS PROFIT MARGIN %? • Gross Profit is the amount of money remaining after you paid for materials. (Sales - COGS) • Gross Profit % is the percentage of your sales that is remaining after you paid for materials. (Sales - COGS divided by Sales) Friday, October 11, 13
  45. 45. SALES MINUS COGS = GROSS PROFIT • Gross Profit is calculated by subtracting the COGS from your Net Sales. • $100 net sales minus $60 in cost (COGS) = $40. • $40 is your gross profit. • Great for determining how much money you have to pay the remaining expenses. Friday, October 11, 13
  46. 46. GROSS PROFIT % (MARGIN) • Always better to know the GPM%. • Your goal is to INCREASE your GPM% year after year. • The HIGHER your GPM% the more real $$$ you'll have to cover expenses and realize a PROFIT. Friday, October 11, 13
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  51. 51. WHAT IF... • Our example: $250,000 x 39% = $97,500 ($2500 loss) • What if 40%: $250,000 x 40% = $100,000 (break even) • What if 42%: $250,000 x 42% = $105,000 ($5000 net profit) • What if 45%: $250,000 x 45% = $112,500 ($12,500 net profit) • Could you use an extra $15,000 right now? Friday, October 11, 13
  52. 52. 2 WAYSTO RAISE GPM% • Charge more for the products & services you are currently offering. • Find new products & services that provide a better GPM% than your current average. • Did you know that the average Water Feature installation yields a GPM% of 50% or GREATER? • Why wouldn't you suggest a water feature on every single project you touch? Friday, October 11, 13
  53. 53. WHAT OTHER IDEAS? • Contractor example: weed pulling, gutter cleaning, or poop scooping? Paver maintenance program; pond maintenance? • Retailer example: beer making supplies or fairy gardens? • Custom-Made products & High-Quality products demand higher prices & margins. • The bitterness of poor quality remains long after the sweetness of low price is forgotten. Friday, October 11, 13
  54. 54. FOCUSYOUR MARKETING,WEBSITES, & FLYERS ONTHE PRODUCTS AND SERVICESTHATYIELDYOUTHE BEST GPM%. Friday, October 11, 13
  55. 55. SHARETHIS INFO WITH ALL OFYOUR EMPLOYEES! Friday, October 11, 13
  56. 56. REVIEW CURRENT OFFERINGS • Are the products you currently sell supported by MAP? • Can your customers find what you sell online for less than you can afford to sell it for? • Effects both retailers & contractors. Friday, October 11, 13
  57. 57. EVER HEARDTHIS? • "We're going to buy the products online but still want you to install them." • Translation:You are over-charging me for the product but we still want them professionally installed and warrantied...(forever). • "We're going to think about it". • Translation:We're going to go home and check the prices online. Friday, October 11, 13
  58. 58. IT'S CALLED "SHOWROOMING" Friday, October 11, 13
  59. 59. HOW DOYOU PROTECTYOURSELF IN SITUATIONS LIKETHESE? Friday, October 11, 13
  60. 60. Friday, October 11, 13
  61. 61. WHAT PRICES DOYOU WANT THEMTO FIND ONLINE? Friday, October 11, 13
  62. 62. • Think about where you are now and what your path to awesome looks like. • Create your fall/winter to do list. • Find your highest GPM% products. • Market the crap out of them. • Start. Wherever you are, Start! Friday, October 11, 13
  63. 63. Friday, October 11, 13

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