Top 5 Water Dealer Frustrations – Number 5 – Low or No Profit
(Video transcript included below.)

VIDEO TRANSCRIPT [EDITED]:

Matt Millar: Hello my name is Matt Millar, Dealer Development with The LeverEdge.

Mark Schabes: And my name is Mark Schabes. I’m the General Sales Manager here.

Matt Millar: We’re going to be talking about the Top 5 Dealer Frustrations in the water treatment industry. We’ll outline number five today.  Our companies have been in business for forty years and throughout that time period we’ve heard a multitude of dealer frustrations on how they can’t grow, how they can’t increase profit, and we’re going to be outlining each of those today. Right now we’re starting with number five.

Mark Schabes: The number five frustration that we run into is Low Profit.  If a water treatment company, really any company for that matter, is struggling to generate the amount of profit necessary for them to invest in their business and grow their business, then they’re kind of stuck in a rut. And one of the first things that we see is most water treatment companies start with an owner-operator. And when you start in the beginning of course, you’re really small and you’re wearing all the hats. But what we see happen a lot of times is, as the company starts to grow a little bit, it hits a stagnation point where that owner is still doing multiple jobs, but there’s not enough profit in the company for the business owner to then invest in bringing in talent to take over some of the owner’s responsibilities and allow that company to scale.

Matt Millar: We’ve heard of companies being the marketing manager, the sales manager, sometimes the installer, all as a single owner-operator. So, Mark, how do they get out of this cycle of doing every job within the organization?

Mark Schabes: Well the fastest and easiest way to get there is it starts with your customer acquisition costs. It’s an area we see a lot of complication within our industry as the decades have gone by and things have changed. One thing remains consistent, and that is that it’s very important to find your next customer and get that next customer at an affordable rate. That’s something we see often today. What are the challenges to doing that? How are people overcoming that? If you can acquire the customer at a lower cost then that will afford a little bit more profit to come into the company, which will allow you to start to invest in the personnel, the trucks, the service technicians, all the different things that you’re going to need to take some of those hats off and allow other people to do those jobs. And then once you can do that, you can start to scale from there.

Matt Millar: So you’re saying that if we can acquire a customer at a lower cost, and learn how to build the value of our product to get a better margin, that’s going to allow us time to invest in people personnel or processes.

Mark Schabes: Yes and you’re probably saying, “Right. That sounds super easy. How do I find that customer at a lower cost?” That’s kind of the magic question. That’s something that we here at The LeverEdge with our decades of experience have been able to figure out multiple different avenues to get that done. Our dealers and our network are growing, and growing extremely well, and we have answers to those kind of concerns. So if you’re not afraid of a little bit of change, because one thing is certain, if you continue to do the same thing you’ve always done, you’re going to get the same result. You have to allow yourself to change a little bit, move forward with the times, figure out how to get that customer acquired at a lower cost. And we can help you get there.

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