Jan. 2023 DAB Update

January 06, 2023

Happy New Year, everyone! Although it’s early January, the DAB Management Board is already hard at work with our priorities and initiatives for 2023. We look forward to sharing them with you soon.

 

While we’re all in a “new year, new ways to do things,” state of mind, now is a great time to assess your compensation schedules, expenses and take a hard look at operating costs.

 

As we all know, there were increases across the board – leases and material expenses are two of the biggest. Look at your costs year over year and analyze them. Pay attention to what may be driving the changes and how you may be able to shift in other areas. Ask yourself how you can adjust your business model to keep it running at the level of quality and performance you need to stay healthy.

 

If you haven’t looked at your rates in a while, now is a great time to make changes and build a rate that sets you up for success in 2023. Once you know, you’ll be able to build your rates accordingly.

 

Review things like the packing material you’re currently using, changes in labor hours for the past few years, fuel, vehicle maintenance, healthcare, insurance and any other costs that may have changed. Also consider the purchase of new equipment like vans, vaults, crates, trucks or power units.

 

If you’re planning to diversify or become a TSP this year, you’ll want to consider those expenses as well. As you’re thinking about expanding, consider market demand for your new line of business. If you’re already a TSP, what additional expenses might you incur now that the GHC has been awarded? There may be specific products you have to purchase, like software, additional credentials or background checks to get your crews on bases, etc.

 

A thorough financial review sounds daunting but it doesn’t have to be. There are resources available. IAM Learning has a webinar series you can check out, “Financial Disciplines for Movers.” Another option is SCORE, which provides access to useful forms, information and business experts. While SCORE’s information isn’t industry-specific, they provide tools and information about raising prices without losing customers, starting a global business, securing funding and retaining workers.

 

Do your research now and you’ll be better equipped to compete and maintain or grow your business in 2023.

 

Wishing you a profitable New Year!

 

Chris Lantz