OPERATIONS: GARY RICHIED – Page 6
We had a very good July this year, with revenues better than we had budgeted for, but short of the record July last year. While revenues were good our gross profit is not keeping pace. This is mainly due to the rising cost of doing business and our inability to raise prices. This will be one of the biggest challenge we face going forward
Another formidable challenge will continue to recruit and retain quality service providers with the ever increasing minimum wages that our lawmakers keep imposing on us. While our current service providers are paid considerably more than the minimum wage we will have to maintain those margins for skilled work that they are expected to perform.
While now is certainly not the time to be raising our rates it is something that I think is inevitable for next year. It will certainly be addressed in the coming months when it is time to create a budget for next year.
Meanwhile we continue to make the best of what is left of our moving season. Fortunately August has remained robust and we are going into September with what looks like a good start to the month.
The most positive things that we have going for us is how safely we conduct our business with relatively few accidents and a minimum of work related injuries. These are both big pluses as we are able to maintain a steady work force and keep our trucks on the job
In a couple of weeks (September 9th through the 14th) we will be recognizing our service providers during what has come to be known as “Driver Appreciation Week”. We will have hot coffee as always but Monday to Thursday there will be fresh bakery and on Friday a hot breakfast from the food wagon. Allied and NorthAmerican drivers will allowed free weights during the week as well as a free Reebie or Jackson T-shirt.
We can find inspiration in the words of Joseph Sugarman who stated “Each problem has hidden it an opportunity so powerful that it literally dwarfs the problem. The greatest success stories were created by people who recognized a problem and turned into an opportunity”.
I hope that while you were enjoying the “Labor Day” holiday weekend you took a moment to remember and say a prayer for all the people who are responsible for the freedom you have to enjoy doing just about whatever you want. Freedom isn’t free.
Peace and Prayers, Gary