I’ve read through some of the threads and posts and the one that got to me was all the chatter about PRICE. Should it be lower, higher more detailed etc. I’m fascinated that the only solution to a downturn in your business is “Should I lower price?” Should I go back and rebid lower? No one has said that maybe its time to get some sales training and do a better job with the opportunities that they get. Boulderdash man. For the love of God sniffling about the economy must stop. To prove a point I contacted a local company that remodels bathrooms. They gave me 8 leads that called in and I sold 6 of them 5 on the first visit at higher margins than the company expected. They are booked through Feb now and I’m a rockstar. Were things so good that all of America forgot that products and services need to be sold. Detailed pricing and scopes of work left on the table to fend for themselves against the others piled on is a race to the bottom waiting for the starting gun. Shouldn’t the answer to lost projects be better sales skills not lower prices? If all it took was a low price one place could sell everything and there would be no need for salespeople at all. There are three things that almost always sound the alarm of the failure of a business. One thing is declining gross margin. Gross margin only goes down because your selling price is too low relative to your cost. The second condition is wages, as a percentage of sales, increasing. And the third condition, surprisingly, is sales volume increase. Now, a lot of people say how can that be? Well, to put it simply, when a business gets into trouble, and let’s talk about trouble in a business. Trouble comes when you can’t pay your bills. When you can’t pay your bills, you need some cash. Now, to get some cash, we’ve got to sell something. How to sell something, “let’s cut the price.” and invariably they cut the price, but they didn’t cut your cost because when you cut prices, you don’t cut the cost, you just cut the selling price. Your costs are still there. So, your gross margin has gone down. Now, when you cut price, did you cut payroll? No. If you cut price 2%, 10%--pick a number--do you cut wages of everyone that works there 2% or 10%? No. So, wages as a percentage of sales go up and consequently you will probably sell a little more and have some sales volume increase, but your margin hasn’t gone down, your wages as a percent of sales has gone up, your sales volume is going up and your company almost assuredly is going broke. Great sales skills equal better margins. Isn't lost projects a sales problem?