Business Financial Health a Seminar Highlight

October 1st, 2015 by Casey Flores
Lyle Hill tells business owners the keys to financial success.

Lyle Hill tells business owners the keys to financial success.

Professional Window Film Dealer Association (PWFDA) executive director Lyle Hill knows finances.

A 35-year businessman with his MBA from the Illinois Institute of Technology, the Window Film magazine columnist enlightened audience members on how to price, forecast and financially plan for their business.

He broke the presentation down into three main areas:

Sales/Marketing

Nothing happens until somebody sells something. This is the old adage Hill began with, and admitted it was true. But in terms of marketing, what should businesses spend?

According to Hill, companies should shoot for their marketing budget to be less than 10 percent and to generally keep it around 7.5 percent. There are, however, exceptions to the rule, he said.

“I’ve seen companies spend far more than that and have great success,” he said. “I’ve seen others spend nothing and have great success.”

Hill also pulled from his studies as an adjunct business professor. He said he found that commissioned sales representatives operate at a 23.9 percent profit margin, whereas salaried reps earn a 26.6 percent margin. Why?

“It should become obvious to all of us,” Hill said. “Who does a commissioned salesperson really work for? Himself. The commission sales guy or gal gets up in the morning and isn’t thinking about his employer’s ROI, he’s looking at a return for his own efforts. Salaried employees think about the company.”

Pricing

When should you raise your prices?

Every chance you get—when it makes sense. Why not?” Hill asked.

“One of the biggest problems we have with our businesses is we’re afraid of the small sales increases,” he said.

Some business owners complain about how they are so busy they can’t keep up with demand. In that case, raise your prices, Hill said.

“We make this incredible mistake of thinking we can’t raise our prices and I’m convinced we can,” he said.

He also addressed when to cut prices.

“All the time,” Hill said. “As long as you have profit in the job, there’s no sin cutting prices.”

While they may seem contradictory, they’re not, Hill said.

WFCT 2015 kicked off on in Reno on Wednesday, September 30. Stay tuned to windowfilmmag.com for all the latest event updates.

Tags: ,

One comment
Leave a comment »

  1. The market ”dictates the price” unfortunately.
    You must get ”the most milage for the least amount of marketing dollar”. Its a bit of a science that need a lot of testing and attention. Ten percent of sales spent of effective marketing and advertizing will ensuse you company keeps growing.Leon Levy Klingshield South Africa

Leave Comment