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Profit needn’t be a dirty word in Social Care

Updated: Jul 11, 2023


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Is it ok for owners / providers to make a good profit? Is it morally right?


Profit allows providers to


✅ Reinvest in the business

✅ Provide for contingencies (such as rapidly escalating energy bills)

✅ Grow the service

✅ Aid retention and recruitment through better pay

✅ Enable better training

✅ Invest back to provide better environments


Yet care calculators set the profit a provider can make (around 8% if you are lucky)

Our CUSTOMERS set our profit margins in a way that goes beyond simple supply and demand.


Local Authorities will tell us they need to protect the public purse, and whilst that is right and proper, some of the tactics employed, are (to put it mildly) questionable.


Still, you have choices.


👉 You are the provider of the service.


👉 You can choose which rates to accept.


And what is the biggest fallacy of all you tell yourself?


It is this:


👉 ‘Accepting this (low) fee is better than nothing.’ 👈


NO IT ISN’T


Many providers are accepting fees either only slightly above, or even BELOW their operating costs. (Some don’t know what the cost to provide the service is…)


…and then expect a gold standard service on peppercorn rates


I can think of no other industry where this happens. A painter and decorator would not price up a job, including time and materials, and then charge below that rate, and therefore operate at a loss.


We need to change our mindset.


Think differently


Hold our nerve


✋ Stop the downward spiral


It is possible


The first step starts in your head. Change what you think is possible


The second step is to call me


Martyn Dawes is a Social Care Business Coach and Consultant. His mission is to make YOUR business more profitable and help you both reinvest back into the business whilst creating a Dream Life. He can be contacted on 07511 867 944 or email by clicking the link below




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