The Unit
Improving gross margin per unit is the second of the Three Secrets For Increasing Profit™. It is also the most misunderstood. Gross margin is the contribution an enterprise makes toward covering overhead costs and producing profit. Gross margin per unit measures the economic efficiency of that enterprise. It is a powerful tool for comparing enterprises […]
Read MoreWhat Will You Retire To?
As of this writing I have 68 days left running RMC before a new generation of management takes the helm. It’s been a good ride, but it’s been a long trail and Kathy and I are ready to hand over the reins. But just because we are ready doesn’t mean it’s easy. When what you […]
Read MoreManaging For What You Want
In Cash Flow Quadrant, Robert Kiyosaki explains that there are four ways to make money. You can be an employee (E), working for someone else for a salary. Alternatively, you can be self-employed (S), a business owner (B) or an investor (I). If you compare the E and S quadrants to the B and I […]
Read More“No” Starts The Conversation
“No” is a powerful word. There are dozens of ways to say it … “That won’t work here,” or “We tried that before and it didn’t work.” But regardless of how it is said, it protects the person who says it and can be maddening to the person who hears it. “No” protects the status […]
Read MoreThe Laws Of Economics
My Cousin Vinny is one of my favorite movies. There’s a scene where Vinny, played by Joe Pesci, challenging the witness, asks, “Are we to believe that the laws of physics cease to exist on your stove?” That line, makes me think of some people who market grass finished beef and use grazing practices that […]
Read MoreWhen Assets Become Liabilities
Look up the definition of asset in Webster and it’ll tell you an asset is “anything owned that has value.” But Webster has it wrong. If I put a down payment on a ranch, financing the balance, the full value of the land shows up in the asset column of my balance sheet, but I […]
Read MoreGetting It Right or Getting It Fast
A young rancher attended his first Executive Link meeting a few weeks after completing a Ranching for Profit School. He showed his EL board the long to-do list he created at the end of the school and worried that there wasn’t enough time to get everything done that he needed to do. “I’m constantly putting […]
Read MoreHow Much Can You Afford To Spend On Feed?
A midwestern University specialist recently wrote a column for a leading beef industry magazine claiming that winter feeding is the biggest expense in most cow/calf enterprises. That may be true in most cow/calf enterprises, but I doubt it’s true for any of the most profitable cow/calf enterprises. The specialist offered suggestions to “reduce feed costs […]
Read MoreA True Story About A Real Manager
About 15 years ago I met an absentee owner who was responsible for a family ranch that was losing money. It had lost between $200,000-$300,000 year after year for a long time. Over those years she’d made several threats to the two managers that if things didn’t turn around, the family would have to sell […]
Read MoreSmart Resolutions
A lot of people make New Year’s resolutions. Gym memberships go way up in January. By Valentine’s Day that box of chocolates is looking pretty good and gym attendance is way down. It isn’t that resolutions are bad ideas. They’re not. Or that people can’t change. We can. It is that most resolutions don’t provide […]
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