Profit Building Opportunities in the Grinding Market

Posted on: Apr 18, 2016 - 07:00 AM | Market Trends
Author: Wayne Brown
To survive in this economy, businesses must be willing to become more strategic, review their product and service offerings, where they look for and how they do business.
 
Business expert Peter Drucker said the two most important ingredients in business are marketing and innovation. To be truly successful, you can no longer do business as usual unless you’re satisfied with diminishing returns.
 
An astonishing 90% of organizations are missing out on major opportunities to boost profits. From our research with some of the most successful wood waste grinding businesses in North America, we discovered the most common profit building opportunities, which are:
 
  • Expand into new markets: Trends show that certain areas of the grinding industry are exploding resulting in many new profit opportunities. You must first learn how to effectively identify where these opportunities exist. Consider alternative markets such as: Bio-fuel, mulch, land clearing, asphalt shingle recycling, colored landscape mulch, screening or even yard waste processing to maximize the utilization of your equipment.
  • Stop competing, start creating: Most companies focus on competing for the same piece of business. This tactic usually results in price cuts and margin erosion. Look for trends in markets or areas that are growing that have less competition.
  • Maximize each client relationship: Each of your existing clients can be responsible for a minimum of 35--‐40% increase in revenue per client simply by identifying/asking for additional business at each opportunity.
  • Ask for referrals: Referrals are still the easiest, least expensive, and most profitable way to grow your business. Unfortunately 95% of businesses do not have or use a formal referral process. Knowing how and using an effective referral system can have a major impact on your revenues.
Construction and demolition materials comprise an estimated 25--‐30% of U.S. solid waste annually. Wood waste, one of the most valuable recyclable materials, accounts for 40--‐50% of the construction waste stream. The impact on our nation’s landfills is substantial, leading to growing government pressure to recycle.
 
Items that were once considered waste are being recycled creating additional profit building opportunities such as:
  • Scrap lumber
  • Pallets
  • Sawdust
  • Tree stumps
  • Branches
  • Railroad ties
  • Twigs
  • Wooden Crates
  • Asphalt Shingles
  • Yard Waste
  • Land Clearing by-products
To learn more about the wood waste recycling industry and the ways to open new markets contact one of our Equipment Specialists at Apollo Equipment.net. You can visit us on line www.ApolloEquipment.net or call 800-982-2844