The 10%-of-Revenue Commission Trap: Why You’re Not Making Money
You pay your people 10 percent of what they sell. It feels fair. It feels simple. It feels like the kind of clean, round number a smart owner picks. And it is quietly bleeding your business dry. Here is the hard truth nobody told you when you set that number. Paying commission on revenue is
Your Real Margin Is Gross Margin Minus Commissions
Let me tell you something most business owners don’t want to hear. The number you’ve been bragging about isn’t real. You quote your gross margin like it’s gospel. “We run a 50 percent margin.” You say it to your accountant. You say it to your spouse. You probably say it to yourself at three in
What Should Your Profit Goal Actually Be? Pick a Number That Pays for Your Business
Most owners ask this question backward. They ask, “What profit margin is normal for a business like mine?” Then they go digging for a benchmark online, or they flat-out guess, or they copy the shop down the street that has different customers, different prices, different staff, and a different owner pulling a different paycheck. Wrong
Why Your Gross Margin Is Lying to You (And How to Fix It)
Let me guess. Sales were up last month. You felt good about it. Then you opened your bank account and couldn’t figure out where the money went. You’re not bad at this. You’re just trusting a number that doesn’t deserve it. Almost every home-improvement owner does. The top line looks fat and healthy. The line
Why Setting the Right Price Is Only Half the Battle
Most contractors think pricing is about picking the right number. You sit down with a spreadsheet, work out your costs, add a margin you can live with, and call it done. The number looks clean on paper. Then the in-home appointment happens. The homeowner asks if you can do better. The rep wants to close.
Why Getting More Customers Won’t Fix Your Real Problem
If you’ve ever thought “we just need more customers” or “we need more leads,” you’re in extremely good company. It’s the most common diagnosis when a business isn’t growing the way people hope. It’s also usually the most expensive mistake you can make. Because in most businesses, the real constraint holding you back isn’t how