Notes from the JLC Show in Anaheim
I heard the following interesting quotes and good ideas, which I thought I’d share with you:
Every time employee benefits increase, such as medical insurance, send the employees a bonus letter saying “By the way, you just got a ___% raise – your medical insurance costs just went up.” In this way, you keep them aware of the benefits paid on their behalf they don’t see in their pay checks but which influence the quality of their life.
- Regarding internal controls “Trust the controls, not the person.” This goes a long way to explaining how to look at the process by which a small remodeling company protects a vital asset – its cash. Set up controls for cross-checking the person who writes the checks, deposits the money and balances the check-book and protect yourself against fraud and embezzlement.
- Communicate well and often: “Voids are always filled – therefore eliminate the potential for rumors by communicating with all employees often.”
- Closed doors always lead to negative assumptions.
- Incompetent people always think they are more competent than they are; competent people always think they are less competent because they’re constantly trying to be better.
- 3 ways to increase profits:
- Increase prices
- Decrease costs
- Increase volume
- Of the three, the one with the biggest impact on the bottom line is to increase prices. A 1% increase in prices (with no associated increase in costs) produces a 27% increase in profits. (Hardwood floors, February/March 2002 – profit Playbook by Dr. Albert Bates) See the downloadable file on this website “Changes in Prices”.