- The Lawn Care Billionaire
- Posts
- Make more profit by cutting revenue!
Make more profit by cutting revenue!
WARNING: If you are crushing it, growing, and making lots of money this email isn't for you.
Thought exercise.
What if you REDUCED capacity?
What if you reduced revenue?
Hear me out.
What if you sold 1-2 trucks?
What if you laid off 1-2 employees?
After doing that, what if you STOPPED spending money on ads and marketing?
I recently spoke with a home service business. They were spending $4,000 to $5,000 each month on advertising.
They had 12 trucks. They had 10 employees.
The employees usually only worked around 30 hours/week.
3-4 of the trucks usually sat unused at the shop.
I told them to sell 3-4 trucks. I told them to layoff 5-6 of their employees.
Here is what happened in one week.
They went from being booked out for 1 week to being booked out for 6 weeks.
They saved $700+ each month on auto insurance.
They saved $5000 per month on marketing.
The manager has a couple of extra hours every day due to fewer employees to manage. He spent that time on closing more jobs and following up with the leads that came in. Their close ratio went up.
They increased prices from $80 per hour to $100 per hour.
Last month they were at a negative profit. This month, that has changed. Back in the green, baby!
Max profit happens when you are using your trucks and employees AT 100% capacity. Everyone tries to get more jobs to reach capacity. We pay the piper of Google and Facebook dearly. The fastest way to get to capacity is sell trucks and lay off employees.

PS - we are talking more about "max capacity, max profit" at Blue Collar Summit. This 3-day conference is a must for any home service business owner. Get tickets for you, your spouse, and key employees today!
Reply