It is ingrained in our psyche to expect to get a discount on volume. Even as children it doesn't take us long to figure out that sweets bought individually are more expensive [per item] than the whole bag!
Somehow it is easier to see the discounts and savings on products as apposed to time ... which is why service providers often end up getting busier and busier, doing more and more for less per unit of time sold.
Those that want to work (and that's a large percentage of self-starters) also want to feel busy -that way we don't need to worry we're going to run out of work. Besides if we're busy we won't have time to worry or we'll have something to do to take our minds off it!
But the important question to ask of yourself, and others, is not ‘Are you busy?’ but ‘Are you profitable?’ You can be very busy and still go bust (or have a heart attack) if you are not keeping a disciplined eye on your gross margin.
So today's tip is to watch it: Don't confuse volume with margin.
© 2006 Jane Francis is the author of "Price Yourself Right”. You can buy the book here.
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