Presidents Message Archive – Gabriel Peretti
March 31, 2008
Gabriel Peretti
President, CFI
Feeling the Pinch!
Carpet cleaning service has been described as a “recession resistant” business. However, many of you are probably feeling otherwise given the current economic situation. In fact, most businesses are feeling the squeeze as homeowners are watching closely how they spend their money. Decreasing home values, higher interest rates and a volatile stock market has made homeowners reconsider their priorities. As a direct result, many small operators have been affected with several going out of business.
How do you make it through these challenging times? Well, there are opportunities if you’re willing to take a renewed view of your market situation. For instance, consider your customer base and your current charges for services. While some carpet cleaners are reducing rates to acquire new customers (in some cases the correct strategy); now may be the time to think about going after the higher end market while raising your prices at the same time. For example, one way to reduce your operating cost is to do one job for $300 instead of 3 for $100.
Yes, I know…easier said than done, but the process of transforming your business starts with a change in the way you approach it. Why start from scratch when you can talk to colleagues that are already doing it? If you need help, make it a point to attend your next CFI chapter meeting and get some valuable insights from those who’ve gone through it already. I’ve been saying it for years, but is works. So take the initiative and seek out the information you need to improve your business and your life.
Several years ago by business depended on two major accounts. Although I knew hat I needed to do something about it, I was happy working my comfort zone. Well, needless to say, one year there was a management change over in these two accounts and I was out…and almost out of business. I needed to make drastic changes if I was going to make it. The first thing I did was to enroll in a marketing class that opened my eyes and forced me to look at my business from the outside. I’ll never forget when, as I was talking on the microphone to the speaker telling him my story, he said, “So you are saying that your business was basically those two accounts?” “Yes”, I said. “Well, then…this is the best thing that has ever happened to you!” he responded. It was difficult but it was the hard through. Loosing those accounts was the best thing that could have happened to me because it forced me to change. And of course, I started being much more active with CFI.
Don’t wait until you’re stuck between a rock and a hard place. Start now, when your changes and present situation is better. Make it easier on yourself. Take classes, come to meetings and talk to your colleagues. Doors will start opening for you even during these hard times.
Gabriel Peretti
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