Go After the High Margin Business

Dear Barb,

We are a light industrial staffing firm and have been in business for 10 years. Two years ago, I heard you suggest that we consider business that is high margin. I didn’t take your advice and now our margins are decreasing and I don’t even know what the Affordable Care Act  is going to do to us.

Can you define what you meant by high margin business? I don’t know that I will be in business next year at this time, if our margins continue going south. Some of the big guys in our business are the ones who are responsible for driving rates down.

Tom F.
Cleveland, OH

Dear Tom,

When I suggest that owners climb the ladder or seek out higher margin business, I’m referring to the following:

Article Continues Below
  1. Placing the supervisors of whom you currently place;
  2. In the temp business, consider the higher margin, long term contract business in areas like IT, engineering, oil & gas, etc.

Imagine making the same profit on one contract engineer that you would make on 20 light industrial temporary workers. Most of your clients are probably giving you the low margin light industrial business because that is what they know you do. They then give the higher level business to one of your competitors. Inform your clients that you also place higher level skilled contractors. This should be reflected on your website and LinkedIn profile.

Barbara J. Bruno, CPC, CTS

Barb Bruno, CPC, CTS, is one of the most trusted experts, speakers, and trainers in the Staffing and Recruiting Professions. If you want to receive FREE training articles from Barb, sign up for her NO BS Newsletter! Barb has spent the last twenty years focused on helping Owners, Managers, and Recruiters increase their sales, profits, and income.

Her Top Producer Tutor web-based training program jumps-starts new hires and takes experienced recruiters to their next level of production. Barb's cutting-edge program, Happy Candidates, provides you with a Customized Career Portal in less than 10 minutes. Happy Candidates allows you to help the 95% of candidates you don?t place and eliminates the greatest time waster in your business.

If you'd like to contact Barb, call (219) 663-9609 or email support@staffingandrecruiting.com.

Topics