Business Bites: Episode 1, Greed is Good! (Gordon Gecko)
Hello!! I’m Carrie Stacey and this is Business Bites! Quick bite sized tips for business owners so business doesn’t bite you!
GREED IS GOOD SAYS GORDON GHEKKO…and I’m going to tell you why it is not only true but essential to your business.
Frequently I see businesses that are not charging enough for their products and services.
So let me tell you a story that illustrates why Greed is Good!
Imagine you had a cushy corporate job, all the necessary equipment is handed to you, work arrives on your desk every day without having to go out and find it AND it comes with a nice regular paycheck….. and then you quit to buy a business….
Not long after I did just that, I was standing in the showroom, surrounded by about 2 million dollars of inventory and I suddenly felt a wave of terror as I realized that these big shiny machines were worth way more money than we could ever come up with…and if I didn’t succeed at this business, my kids would lose their home…..
Then I looked at my staff and the moment became even more impactful as I realized that I was now responsible for paying their rent, buying their groceries, and buying Xmas presents for their kids!!
It was like, in a day, going from a family of 4 to a family of 34!!!
I realized I had no choice but figure out how to succeed at this….
It is essential as a business owners to set prices to get the MOST dollars on the bottom line ever day because we have a duty to ourselves, our families, our staff, their families, our suppliers and their families, and so on….
Yes, but, you might think, there is a limit!!…..is there?
If we look at many businesses today, in the pandemic, what is the difference between surviving and closing?
Are the government bailouts enough? NO!
And what is happening to business owners and staff of the ones that are closing? They are losing their homes, they are in the line at the foodbank!
The businesses that are surviving are the ones that had the cash reserves to put in new infrastructure, to pivot in a new direction, and to pay rent when they had to close.
Greed is not only good it is essential. It is your job to set your prices to maximize your bottom line.
So I challenge you to look at your pricing, look at your margins, and look at your bottom line to ensure first you are meeting or exceeding industry benchmarks,
THEN push to MAXIMIZE your returns
Because a lot of people are depending on you to do so…. today tomorrow and through the next crisis.
Thank you for joining us at Business Bites, and please join us again next time when we talk about the most important word for Business Owners!!