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  One installer has a good idea....networking while keeping profits up

  Make Money & Keep Profits Up
  New Article

  Article #1 07/27/2008

How one pool table installer is prospering in a tough economy with the help of his competition

High fuel prices are eating into the profits of pool table installers everywhere. Competition for that job or sale is lowering prices for moving or general pool table services in many areas which isn't helping small companies stay in business. An installer in Pennsylvania has begun networking with his competitors.

We think it's pretty smart and here's why

This installer identified that when his pool table service customers called him from over a specific mileage away from his normal home base service area and in some cases within his area, he called his competition. If a company in his network is closer to a customer and either one could take the job he gives the job to the other company and the other company pays him a commission percentage for the work.

The agreement that helps both companies

What is accomplished under this principal of networking is important.

• With no labor cost & no additional gas and wear and tear on vehicles or equipment the installer who does not take the job is still making money from his advertising.
• The companies have lessened the "competitiveness" of thier relationship and now instead of lowering prices to get jobs which hurts everyone, they can keep their pricing higher for their hard work since the higher the pricing the higher the percentage the referring company will get from the job.
• When companies are too busy for a job that comes in for them, they can pass the job onto the another company in the network and still make a good deal of cash from the job even though they didn't do anything, further adding to their profits.
• And suppose your company gets a really big job? One of those you have to go dig up unskilled labor to pull staples and carry slates which adds to your costs and frustrations, you can have another company in the network help you out and split the job up, this is a huge benefit since the job is done quicker and with less stress. If structured properly your company can make almost as much profit from the job as you would have with less time.



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