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A BIGGER Big Payday

Make your Big Payday BIGGER

You Need A Bigger Big Payday

Not many years ago it felt so good to a garden center owner to have such a large amount of cash in the bank at the end of spring.  THAT is the BIG PAYDAY for all the hours, sweat, investment, and risk of the business. Then it was fun to figure out how to handle the money to reduce the amount of taxes that would have to be sent to the government. New SUV, greenhouse, benches, 401K?  Today that pile of cash feels inadequate to pay the bills to get through the year to even begin the next spring for many companies.

In any highly seasonal business the money taken in during the busy time has to do double duty. Spring income must provide a profit, plus cover the gap between current bills and income through the slower time of the year. What is needed is a BIGGER Big Payday!

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The $5.26 Million Dollar TOO High Cost of TOO-LOW Prices

Are you LOSING 2% or MORE of your Bottom Line to Poor Pricing?

As moderator of the session on Pricing Strategies for Profit at Today’s Garden Center magazine’s Revolutionary 100 Roundtable held in Atlanta’s America’sMart I asked the people representing the 22 companies in the session if they would write down on the note pad in front of them the number representing 2% of their annual sales. Then came my challenge to them.

The challenge was to put the piece of paper on the front of the table for me to pick up if they had learned enough new information about pricing in the previous hour of the session to add a minimum additional profit of 2% of sales to their bottom line in 2010 – WITHOUT THE CUSTOMER NOTICING. I would then pick the note paper up and have the event staff total them and share the number at the Town Hall closing session. ALL of them did. And what a number we had to share!

A total additional profit of $5,261,000.00, averaging $239,000.00 per company was produced. The least amount claimed was over $30,000.00. And think about it – every one of these companies has left those dollars on the table every prior year. Did you?

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