Overheads
My last ProfitTips article focused on the difference between being productive and being profitable and I used gross margin as a measure of profitability of an enterprise. In introducing gross […]
Read More$100 Per Hour WITB
In the Ranching for Profit School we make clear the difference between WITB (Working In the Business) and WOTB (Working On the Business). We often say WITB, is the $10/hr […]
Read MoreAttracting & Retaining Quality Employees
“You just can’t find anyone willing to work anymore.” I hear this quite often from ranches struggling to find and retain quality employees. When we look deeper into the situation it is often no surprise, as we expect our ranch employees to give long hours in sometimes difficult conditions with mediocre compensation. In the Ranching […]
What Are You Worth?
I often ask audiences at schools and workshops if anyone pays themselves what it would cost to replace themselves. Very few hands go up and those that do are usually attached to the arms of Ranching For Profit School grads. Many justify not paying themselves a fair wage claiming that their ranch isn’t profitable enough […]
Game Changer?
Income – costs = profit, right? The answer is “sort of.” It’s a little more complicated than that because we need to adjust for inventory changes, consider non-cash costs like depreciation and non-cash income like retained heifer calves. But over the long haul, for the most part, income – costs = profit. The obvious conclusion […]
When is a Dollar Not a Dollar?
Dan Airely, a behavioral economist at Duke University conducted a silly experiment with serious implications. The experiment involved money, Coca Cola and college students. Dr. Airely stocked dorm room refrigerators with one of two things. He put a six pack of Coke in some. In others, he placed a paper plate with six crisp one […]
The Profit Tree
There are only three things anyone, anywhere in any business can do to increase profit: Decrease the overhead costs Improve the gross margin per unit Increase the turnover (the number […]
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