Increase your profit margins

One of the biggest sales problems businesses can face is increasing your profit margins.

Obviously having the right price point is increasingly important in almost all markets, but there are other factors too.

Here’s a list of things you can do to increase your PROFIT MARGINS.

1. STOP UNNECESSARY DISCOUNTING
2. INCREASE YOUR PRICES
3. INTRODUCE PREMIUM VERSIONS OF YOUR PRODUCT
4. CUT COSTS
5. CUT WASTE
6. LOOK FOR SHRINKAGE
That’s just the politically correct way of saying theft, Which may be originating from customers, staff or management. (except you of course!)
7. TEAM INCENTIVES BASED ON MARGINS - this is an excellent way to increas your profit margins.
This is a great way to focus your entire team on their part in efficiency and cost cutting and increasing your profit margins.
8. REVIEW TEAM ROSTERS
Labor costs are a major cost percentage in most businesses, so this is an area that demands constant measuring and fine tuning.
9. ESTABLISH KEY PERFORMANCE INDICATORS
Every major cost and profit centre should be measured and monitored as frequently as possible. Annual and six monthly Profit and Loss reports may thrill your accountant but are totally inadequate as the sole source of management information.
10. BULK PURCHASING AND RAW MATERIAL COST RENEGOTIATION.
When was the last time you checked you are getting the best possible deal on ALL your major supplies and raw materials?
11. DECREASE STOCK LEVELS
Do you really need all the stuff you have sitting in store rooms and on your shelves?
12. MANUFACTURE YOURSELF
Go through your purchases and look for items that you currently purchase that could be manufactured more economically in-house.
13. SUBLET EXTRA SPACE
14. JOIN CO-OP BUYER GROUPS
15. MAXIMISE TAX BENEFITS
16. ESTABLISH TIGHT, CONSISTENT CREDIT CONTROLS
17. REFINANCE and RENEGOTIATE LOANS and LEASES
However, be sure to check hidden costs, establishment fees, tax costs, requirements for additional security and penalty clauses.
18. MEASURE EVERYTHING.


Learn more about Competitor Price Watch Here.