How to Increase Profits Without Hiring More People

This week on ‘Ask the Experts,’ an HVAC Contractor in Indiana asked:

“I need to know how to increase profits without hiring more people?”

Contractor University member Weldon Long began by saying that there are two ways to grow a business: either by acquiring new customers or selling more to your current customers. “And selling more things is a lot cheaper than acquiring new customers,” said Long.

“For me the way to do that, is to improve sales performance on your existing calls,” explained Long. Long explained that out of all the sales and business metrics in existence, the best one for measuring a business’s performance is revenue-per-lead. This is because he is able to see how much a single salesperson is upselling and increasing the ticket price, and Long can quickly and cheaply help a business become more profitable by spending more time in this area.

Long even suggests workers go to different areas of the house that they weren’t called out for in order to add more items to your ticket, because it is easier to sell to customers when they are already spending money for one’s services.

“Mine your own existing customers, raise your prices if it’s possible, and train your people to sell more stuff,” said Long. “All of which can be done without increasing a dime of overhead or hiring one new person.”

Our faculty members have also answered questions on other topics related to system sales, including Most Important Process to Increase Closing Rates and Service Calls Per Day.

Hear more from our “Ask The Experts” faculty members on “Cracking The Code,” our weekly web series.

Contractor University members can click here to log in to their member dashboard and submit a question through the Ask the Expert portal.