Here are a few effective strategies we have seen advisors and companies adopt based on their
Pi.Q Analysis results:
- Pricing configurator: if jobs are not consistently profitable, the pricing process may be
to blame. You can use an existing software tool or build your own spreadsheet to
calculate the price required to make a profit on each new job based on the details of
- Flat fee: if small jobs are losing money, consider implementing a threshold. This may
look like a minimum order size or requiring that customers purchase less profitable
services as part of a package that includes more profitable services.
- Sales effort realignment: if the best salesperson in the world is promoting an
unprofitable product, they will be losing the company money. Don’t fire the
salesperson; have them sell something valuable.
- Sales incentive realignment: the easiest customers to sell are the unprofitable ones
because they are getting the best deal. If salespeople are incentivized based on
revenue or even gross margin, they may be increasing those metrics to the detriment of
the company’s overall profitability.
- HR improvement: payroll is one of the biggest expenses for service companies, so
profits increase when a company implements HR best practices for recruiting, training,