Know Your Numbers, A Guide For HVAC, Plumbing & Electrical Contractors

Jim Kruspe's Hero Image

Know your numbers before Summer Hits w Jim Kruspe 

Episode Overview

Is your business thriving, or are you just getting by? How would you even know if you do not know your numbers?

You need not worry because your favorite Service Business Mastery Podcast is back with a topic that is crucial yet rarely discussed- “Know Your Numbers and How to Do Right Pricing”!

  • Your PRICING is the most foundational element of your Business, and having a clear idea of your pricing strategy and profit margins (Gross / Net) will allow you to pivot quickly when your business slows down or spikes when demand increases.

So come, Join Tersh Blissett and his co-host as they talk with Jim Kruspee (CEO of Profit Solutions Group) about how to properly price your service offerings and why having the right pricing is so important for your business! 

Let his nuggets of wisdom goals guide you in owning a thriving, profitable, and ever-growing business.

(“Jim Kruspe is a business coach and consultant who specializes in working with small business owners, entrepreneurs, and multi-million dollar companies. Jim helps small businesses and entrepreneurs achieve work-life balance, pursue vision and strategy, and focus on priorities. He graduated from the University of Kentucky with a BS and BA.

He spent his early career doing inside sales on the warehouse floor and then moved up to territory management and mid-level management with one of the nation’s top HVAC suppliers.

In recent years, Jim has partnered with savvy business professionals and been a minority owner in several businesses. He took a unique approach to growing their market share in new markets by showing them how to run a profitable business.

Jim has more than 20 years of combined experience in management, sales, and coaching in the trades and professional service. In addition to his vast knowledge of starting, growing, and improving businesses, you gain access to his large network of colleagues that can help in various aspects of your business..”)

Are you a business owner who wants it to succeed, or is your business doing well, but you’re unable to measure its effectiveness? Then this podcast is for you.

In this episode of the Service Business Mastery Podcast, you will learn how to set your prices correctly and how to know your numbers.

Jim advises that in addition to investing in the skills required to run your business effectively, you should also invest in the financial skills that every business owner requires to thrive.

Financial information may intimidate you, or you may rely on your accountants and bookkeepers to handle all of your financial work for you, which is why OUTSOURCING such work has its own set of benefits. 

[00:36:00] “I love numbers, but bookkeeping and taxes are unbearable to me, so I strongly recommend that you do what you do best and delegate things you can outsource, such as accounting and payroll. There are advantages to doing so, especially if you are the CEO of a company,” Jim Kruspe

 

[00:39:00] “I don’t recommend anybody to do their taxes. Instead, I recommend getting accounting done by somebody who is an expert and knows everything about tax liability. My job is to make you pay more taxes than you ever have to the IRS, right? Because what that means is we are making money, right? And to reduce your tax liability. That’s the accountant’s job, right?” further he adds.

Jim Kruspe's Hero ImageJim says it is possible to determine where your business is losing money by looking at the numbers.

[00:44:00]- Jim talks about the importance of going through your financial reports.

  • Regular financial reports give you a clear picture of your particular expenses, so you’ll be able to take action when they’re higher than what you expect. For example, you may be surprised at how high your marketing costs are; once you identify them, you can keep a close eye on them.
  • Moreover, you would have a clear understanding of how much your business needs to earn to meet its’ financial goals, right?
  • It is important to know your business numbers because doing so makes you a better business owner. It doesn’t have to be scary either. Business owners who invest in this knowledge will have an unshakable sense of self-confidence.

Pricing is based on the service industry.

[01:04:00]  “We often forget basic concepts of business, and the most basic is supply and demand. It’s like the red light in your car When the RPMs start going crazy. You’re like, ‘Oh no, I’m overheating!’ But to drop those RPMs you’ve got to increase your speed. That is how the theory of supply and demand works. If your demand is high, your price has to go up because your capacity has reached its limits,” says Jim Kruspe.

Jim Kruspe recently joined Service Business Mastery Podcast which included his thoughts on:

  • Why knowing your numbers is important to excel in any business?
  • What value would your numbers bring to the table?
  • If you know your numbers better, how much easier would your business be?
  • Get to know which products/services your business offers are making you the most money
  • Pros and cons of delegating work
  • How can you PRICE rightly the service that you offer?
  • Ultimately, you know your business better than anyone, so how can you build and promote a highly profitable business for you and your team?

To find out how Jim’s vast business knowledge can help you start, grow, and improve businesses, here are some Key Resources from his interview:

Listen to this podcast and get equipped with essential business advice from this impactful conversation. 

So, what’re you waiting for? Tune into this episode right away and get one step closer to becoming the successful owner of your dreams.

Important Links:

About The Guest:

Jim Krupse Headshot Image

Jim Kruspe is a small business coach and consultant working with motivated small business owners to multi-million dollar companies.  He helps small business owners and entrepreneurs achieve a healthy work-life balance, lead with vision and strategy, and focus on priorities.

After graduating from the University of Kentucky with a BS and BA degree, Jim entered the wholesale distribution business. He started on the warehouse floor, handled inside sales, was promoted to a territory management position, and later obtained a mid-level management position with one of the largest HVAC suppliers in the country.  Jim took a unique approach to grow their market share in new markets by showing them how to manage and run a profitable business.  In 2013, Jim decided to fill a need for full-time coaching and consulting in the trades and professional services industry.  In 2015, he co-founded with two other partners, an executive coaching firm with an emphasis on enhancing their networking skills.  In recent years, Jim has partnered with savvy business professionals and was a minority owner in several businesses.

With more than 20 years of combined experience in management, sales, and coaching the trades and professional service, Jim brings a wealth of practical knowledge to his coaching work.  Along with Jim’s vast knowledge of how to start, grow, and improve businesses, you also gain access to his large network of colleagues that can help with different aspects of your business.

Jim lives in Hebron, KY with his 3 children. When Jim is not working, he loves to play golf, hunt, and fish.

Subscribe to Service Business Mastery on Apple Podcasts, Spotify, our website, or wherever you get podcasts to hear more such fascinating and insightful stories.

 

For a complete transcription of the interview, Read More

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