Podcast #23

“Company Aquisition”

Featuring Joe Cunningham

Intro: Welcome to Profiles In Prosperity with your host David Heimer.

David Heimer: Hi, this is David Heimer. Welcome to Profiles In Prosperity. Joe Cunningham may be the best trainer and consultant in our industry. I’ve known Joe for many years now. When I first met Joe, I decided that one of the best things that I could do for Service Nation members was to give them as many opportunities to see Joe as possible. Years later, I still think that’s a great plan, and that’s why we continue to work with Joe as much as we do. By the way, I’m not the only person who thinks that. He’s won consultant of the year, not once, but twice and that’s very difficult to do. Joe’s amazingly experienced. He has a tremendous track record in our industry. He’s kind, he’s loyal, he has a heart of gold and he’s helped out so many people in and outside our industry. So Joe Cunningham, welcome to our podcast, Profiles In Prosperity. And I’ve got just one main question to ask you, but it’s kind of a complex one. You’ve been around the industry for a long time. You’ve seen successful companies. You’ve seen unsuccessful companies. What, in your opinion, are the two to three things that most contractors could do to improve their businesses?

Joe Cunningham: Well, David, I work with a lot of different kinds of companies like you said. Some do well, some do not so well. And I think if I was to narrow down the three primary things that a company could do to rapidly increase their profitability and productivity and move forward, it would be first of all, to review their pricing and make sure that they are in line with where they need to be. You know, recently, I was out with a company and I went through their pricing and I asked them how they came up with it. And they told me what they did was that they called their nearest five competitors and got their pricing, and then they tried to be somewhere in the middle. And then I asked them if their competitors were as successful as they’d like to be and they said, no. So I think if you’re basing your pricing on what other people charge, and then you expect to get more successful than your competitors, that you’re barking up the wrong tree. So review your pricing and make sure it’s commensurate with what you’re doing. Your pricing is your pricing. You know what it costs to do business. So price your pricing accordingly to what you need.