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When it comes to making a higher profit with your staffing company, selling more is not always the answer. This can hurt your business long-term if you underprice your services to win a high-volume contract. Instead, look beyond sales and look to pricing structures to find ways to increase your margins. 

Implement these methods to increase your staffing company’s margins and drive profits. 

Understand Your Segment 

Alter your service delivery methodology to each segment you serve. If this includes Light Industrial, possibly provide training and safety to avoid downtime and hopefully receive a higher bill rate and also worker’s compensation claims. If you fill the skills gap in Information Technology, reflect the value of your billable talent in your pricing. Think bill rates.   

Know Your Competition 

Be aware of whom you are competing with. Understand the differences in how to incentivize, staff, and service your clients. Know what your competencies are and continue to improve on them. Emphasize which skill sets your staffing agency focuses on and the hot buttons and pain points of each segment you serve.  Quote bill rates not mark ups, 

Create a Plan 

Have a written plan for where your staffing agency is going. Study the market to uncover trends and anticipate demand. Create detailed forecasting to maintain greater control and increase your odds of success. 

Keep as Much Margin as Possible

Know what the market will bear so you do not overpay employees or undercharge clients. Charge for the value you deliver. Track when employees reach State Unemployment Insurance levels – rehire those folks first they are more profitable. Closely monitor workers’ compensation. Thoroughly investigate each incident, and commit to increasing safety.   

Streamline Your Systems 

Learn what works and build a process around it to increase efficiency and effectiveness. Implement replicable, scalable systems for what you excel at.   

Train Your Front-Line Associates 

Provide your sales reps and recruiters with the information and tools needed to make critical pricing decisions for your staffing firm. Ensure they understand your pricing philosophy. Train your sales reps and recruiters to clarify your differentiators and how different sectors operate. Show them how to hold margins and value what you offer. Forward market your temporary staff before they come off assignment. 

Anticipate Client Needs / Create stickiness 

Create a consultative sales approach.  Be so involved in your staffing firm and your clients’ businesses that you know their needs before they express them. Call clients to solve problems before they come up. Have candidates ready before they are needed, especially those with specialized skills. Understand when clients will be busier based on business cycles. 

Cut Expenses 

Determine where you lose margin so you can retain more dollars. Examine every line of your profit & loss statement at least monthly. Look for small items that add up. Since customer acquisition costs are high, focus on building relationships to retain clients.   

Outsource Your Back Office 

Invest your time driving revenue. Use your strengths to build relationships with clients and increase profits. Trust your administrative tasks to Madison Resources.  

Work with Madison Resources 

The best way to increase your staffing company’s profits is by working with Madison Resources. We provide the tools and support you need to manage costs, know your market, and improve focusPartner with us today.   


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