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I am recalling a converstaion with a competitor early 2012. He went ON and ON and ON about how he is expanding statewide. He was setting up opperations to the North and once that was operational, he was moving East, then South, then West. He was projecting that Volume would lead to Riches.

At the end of 2012, I ran into that same competitor and asked him how his year went and most importantly his expandation statewide. He said, that the volume was there but the pricing was NOT; he lost a good bit of money due to chargebacks, reassignments and lost clients. He ended up back at square one--operating in a 50 mile radius around his office.

I am not saying that HE is a fool, but his actions were indeed foolish.

Be smart with your money, be smart with your time, be smart with your strategy.
 

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when I first started we covered a large area approx 70-80 mile radius. All our work was spread out all over the place. After 6 months of running around like a fool we went 50 mile radius and only kept zip codes we had volume in. Now we've decided only 30-35 and carry a variety of clients. Less rechecks, chargebacks and bs.
 

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Small areas of coverage is not a bad thing. We used to service 5 Midwest States, South Carolina and all of Georgia. We made very very good money and our subs were pocketing more money in some cases then we did. The writing was on the wall starting 2006-8 and started pulling in the reins. TODAY No way would I consider a radius of more than 30-35 miles. No money in it anylonger.
 

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When we I first started we covered four counties. After driving all day to do four cuts we dropped it to two counties, then one county and now only the West end of one county, all within 45 minutes of my house to the furthest job. I now route them so I am rarely more than 10 minutes between properties.
 

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We did statewide coverage years ago when we thought there may be gold in them thar hills. The return dimished as the volume and area expanded. You should keep coverage areas for Nationals to the same areas you would for your private accounts.
 

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I have never understood the train of thought that to "grow" your business you need to add more territory to your coverage area...
Some of the concepts that are used in this industry are soooooooo not sound..

1. Grow your business...add zip codes=more logistics and upfront revenues
2. You'll make up for it with volume=losing revenue on all work orders not just one
3. You'll make up for it over there=it will take you 5-6 work orders to break even on the work order you just lost revenue on
4. "I need a favor"= do this for us so we can create a callback and get you to do the services for free
 

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4. "I need a favor"= do this for us so we can create a callback and get you to do the services for free

my fave the only favor im available for is inserting my foot in there backside
 

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We cover a large area and it works. Logistics are a pain and costly, yes, but since we cover a more rural area, trip fees and lesser discount is possible which makes up for the distance.

I have never understood the train of thought that to "grow" your business you need to add more territory to your coverage area...
Some of the concepts that are used in this industry are soooooooo not sound..

1. Grow your business...add zip codes=more logistics and upfront revenues
2. You'll make up for it with volume=losing revenue on all work orders not just one
3. You'll make up for it over there=it will take you 5-6 work orders to break even on the work order you just lost revenue on
4. "I need a favor"= do this for us so we can create a callback and get you to do the services for free
 

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Expansion is a great thing in many industries; in this one however, it is unique when you can make it work in the long term. Congrats are in order, you are the exception.
 

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have had to reduce my coverage area a couple of times. the larger areas worked until I got really busy, then it was a mess!
I think there was nothing worse then having to return to a property for more photos or 5B`s no charge BS whenit was an 1 1/2 away!
 

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Speaking of the siblings..............



My relationship with them really dove off a cliff when I reduced my zip codes, I was covering entire counties and that just wasn't working any more.
Drive 2 plus hours one way for a lousy $25 trip charge.......... NOT HAPPENING with $4 a gallon diesel fuel.

The counties in some of the western states are bigger than some states in the north east.

They got real *itchy and menopausal about the reduction in coverage.
I pushed back and it went down hill fast after that.


I have no problem providing an honest job for honest pay. But that has to be a two way street.
 
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