Decode Customer Behavior to Control EBITDA!
December 19, 2023
A company often calculates its earnings before interest, taxes, depreciation and amortization (EBITDA) to measure financial health. Stripping out “nonoperational” expenses provides a clearer picture of your company’s ability to generate cash flow for its owners and for judging operational performance. The primary tool we have in our industry to generate cash flow is the quote. If your price is too high, your competition will get the business. If the price is too low, you will be the next contestant in the “race to the bottom,” where the winner is the loser. Quotation guesswork leads to erratic EBITDA, which is what BCMI’s Craig Yeack refers to as “EBITDA scatter.” So, how do we price competitively and control EBITDA? Read this Tech Trends column, published by Concrete Products magazine, to learn how well-structured quotes based on customer behavior will help control variable costs and boost cash flow and earnings.