Why “Sales” Fixes Everything” Is a Dangerous Myth- More sales won’t solve a margin problem

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Why “Sales” Fixes Everything” Is a Dangerous Myth- More sales won’t solve a margin problem

Every contractor hears the same advice: “Just sell more.”
But that advice is dangerous if your business has a margin problem.

If your pricing is too low, your labor costs are too high, or your jobs aren’t profitable, increasing sales will only multiply the problem. You’ll work more, stress more, and take on more risk — for little to no gain.

Here’s the truth: more sales only help if you’re making money on each one.

Selling your way out of a cash flow problem is like trying to fill a leaking bucket by turning up the hose. If you don’t fix the leak, you’ll never catch up.

I worked with a contractor doing $1.6M in annual revenue. His crew was maxed out. He was booked solid for six months. But his profit at the end of the year? Just $28K. That’s not a business — that’s barely a paycheck. We reviewed his pricing, tracked job costs more carefully, and increased gross margin targets from 24% to 36%. He raised prices across the board by 12%. Out of 25 bids, 22 still closed. Within 90 days, he made more profit on fewer jobs and had room to breathe again.

You don’t need to sell more. You need to sell better — and price with purpose.

Let’s make sure every sale moves you forward.

Pick up your free copy of my new book, “The 7 Minute Conversation-How to Hear the Story Your Small Business Financial Statements Are Telling You-CONTRACTOR EDITION”.  Go to www.7MinuteConversationBook.com

Ready to find out where your cash and profits are really going? Book your free 15-minute Profit and Cash Flow Call with me. No pressure. Just real clarity. I’ll help you see where your money’s hiding — and what to do about it. Schedule at www.CashFlowCallWithLarry.com

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Larry M. Weinstein, CPA—the Cash Flow Cowboy®is a trusted advisor for tax planning and resolution strategies for business owners and contractors in Texas and beyond.

Minimize your taxes. Boost your cash flow. Keep more of your hard-earned money. 

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