BREAKEVEN

It is important to know that Breakeven means that you are covering all of your normal operating expenses.  You are not making or losing money.

Below are the typical outcomes based on whether you know your cost or not.

WHEN YOU DON’T KNOW YOUR COST

You lose existing customers because your customer received lower rates that you think you can’t match.

You don’t take business that would be profitable or at least Breakeven because you think the rate is too low.

You take new business that pays lower rates and you hope your making money.

WHEN YOU KNOW YOUR COST

You can decide how much you can lower your rates for existing customers if the choice is lower rates or losing business.

You take business that is profitable or at least Breakeven.