Kurt was frustrated. He and his wife have worked very hard to grow the customer base of their delivery business, but they weren’t improving their profitability.
As I learned about their business, it became evident that Kurt had pricing issues. When asked about how they price a customer transaction, Kurt told me about a formula the previous business owner had given them.
This formula was the problem. It didn’t account for the cost of their product or for the volatility in their fuel and transportation costs.
We overhauled their pricing formula, resulting in significant profitability improvement.
Proverbs 3:13 says, “How blessed is the man who finds wisdom and the man who gains understanding.”
Sometimes in business, we gain understanding by seeking out others who have experiences we don’t.