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Home » Risky Business

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Risky Business

January 1, 2005
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If your company makes more money than it knows what to do with, don't bother reading any further.

Only about 4 percent of all small businesses survive more than 10 years. On top of that, you don't have to be an OSHA official to know roofing is one the riskiest occupations out there. It is hard enough to just run the business. Ensuring its profitable future is even more challenging. If your company makes more money than it knows what to do with, don't bother reading any further. But if you are not commanding premium pricing that covers your ever-escalating operating costs; offering your employees an attractive compensation package; replenishing your equipment from retained earnings, or delivering annual profits to the company, then read on.

When profit is discussed, why do some contractors say they simply can't raise their prices? There are all kinds of reasons given: This is a cheap market; there is too much low-ball competition; and the universal demon known as the "going rate" restricts my pricing. How can you expect me to charge more than that and still get customers? The fact is, some can't, some could and others just aren't sure of their costs or sales abilities.

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