Snow management is a sales-focused business. And your sales skills will make or break your ability to grow strategically. But as important as new sales are, overselling your service brings its own risks. Understand your capacity for service, the limits of your “current state” and make sure you take all variables into account:
From SIMA’s Certified Snow Professional program
Controlled sales and strategic sales goals are essential. In today’s world of labor, materials and other product-related constraints, selling too much (or the wrong) new work can have profound negative consequences on your company. To avoid those consequences and still grow your business, you have to have a plan. Enter two important definitions to review:
[Source: SIMA Glossary of Terms]
Understanding your current capacity to deliver service and your ability to add capacity has always been important. In today’s economy, it is essential.
The ability for almost every contractor in the snow business to add capacity has been changed. Procuring salt, plows, trucks, loaders, etc., takes longer or isn’t even possible without significant (months-long) lead times. Don’t assume you can pick up the phone in October and call your dealers to get new plows installed on those new trucks you need to purchase. Used equipment is also in short supply and more expensive.
This game is a constant evaluation of your contracts, potential new clients, and all the logistics you will be coordinating during the season (people, equipment, process). Resource allocation forecasting is essential, it can look like this:
From SIMA’s Certified Snow Professional program
Once you understand your current capacity and your ability to add capacity, focus on your sales activities and define the type of work you are willing (and/or capable) of servicing beyond your current portfolio.
Knowing the lead time on adding the necessary equipment to service that new work gives you an informed deadline for signing new work. Use the two pieces of knowledge together.
Don’t be tempted to add large properties or portfolios you don’t have in your plan as you approach fall/early winter. If you happen to get these opportunities, consider partnering with a subcontractor or friendly competitor who might have excess capacity.