About 6 months ago or slightly more, I did a few things.
First was to go through the accounts and cut a lot of unnecessary spending.
Then I looked at purchasing of chemicals and products and now on higher use stuff, I always ask at what volume do a I get a price break. So where ever possible, I purchase in bulk and have found I can often save 25-40%.
As a result of those two areas alone, we've shaved our monthly bills by about 35-40% while still having sales about 10% up on last years volumes.
Secondly, I had my receptionist go through and work out a 'daily break even point' for each van.
Total expenses last year. Add 10+10% for growth and increasing supply costs. Add any additions that are new.
Take total and divide by total number of vehicles, divide by 48 (weeks of work allowing for annual leave)
Divide that figure by 5 days a week and you have a very rough daily break even point.
Now consider what margin you want/need over and above that figure and you'll be very surprised.
If you have staff, tell them what that figure is... all of a sudden, they may realise that you're not 'raking it in' as much as they thought.
When you do that, you start looking closer at other areas that may not be as profitable and then you can either drop the service OR lift pricing to correct.
If you haven't done these, I suggest you do... it'll take you less then 20 minutes and will open your eyes.
I'm sure those of you that have done the
SFS or other programs will have already done something a lot deeper than this but it's quick, easy and fairly close to accurate.
John