Any Damn Fool Can Keep Busy

Published: Jan 15, 2004

Application

It's very tempting to erode quality and margins when your competition keeps lowering prices.

Instead of matching it could be better to examine your marketing strategies.

Is there an opportunity to restart a different product life cycle where the profit margins are higher? Do you have a niche market where you have an advantage? Can you add differential to your product or service that will demand a premium price?

Stories

Trucking operator

A truck operator was renting some of our surplus parking space to park his small fleet of trucks. I noticed that some of his trucks were not rolling every day. In fact, the entire fleet would be idle on some regular work days. Also, I learned that his rates were much higher than average.

I suggested he lower his rates so he could keep his drivers fully employed and his trucks would always be rolling.

He introduced me to the concept of, "Any damn fool can keep busy. When my trucks do roll – they make money."

Submitted by: Nephew Gerry

Outcomes

To maintain continued success contributions to overhead, maintenance, expenses and profit margins, should remain in perspective for the short run.

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