How has this change in business model affected your profits?

Short Answer: By shifting the focus from charging high prices per job to prioritizing a higher volume of jobs, profits have significantly increased despite lower prices per individual job.

Full Explanation

Changing the business model from emphasizing high ticket prices to concentrating on completing more jobs has had a positive impact on profits. This approach means selling more units or services at a lower price rather than fewer at a higher price. Even though each job generates less revenue individually, the total number of jobs completed contributes to a greater overall profit.

Step-by-Step Breakdown

Initial Model: The focus was on closing between 15 and 17 jobs daily with higher prices per job.
New Strategy: Adjust pricing to lower per job fees but aim to double the number of jobs closed daily.
Execution: The number of jobs closed increased to 31 per day.
Outcome: Despite lower income per job, total profit rose due to volume.

Real Examples

For example, instead of closing 15 to 17 jobs a day at higher prices, it became possible to close 31 jobs daily. Even with lower pricing, the increased volume in sales and services resulted in higher overall profits.

Common Mistakes

Expecting higher profits solely from high prices without considering sales volume.
Failing to adjust business operations to handle the increased number of jobs.
Overlooking the importance of volume leading to better profit margins over time.

FAQs

Q: Why does focusing on volume increase profits?

A: Even though the price per job is lower, completing more jobs raises total revenue, leading to higher profits overall.

Q: Does lowering prices reduce profit margins?

A: While per job margins might be smaller, the increased number of jobs can more than compensate, resulting in greater total profits.

Key Takeaways

Shifting the business model to prioritize volume over price can result in increased profits.
Doubling the number of jobs can have a significant impact on overall earnings even if prices are lower.
This strategy requires adjusting operations to handle more transactions effectively.