More importantly, you need to increase profit margin to build value into your business and take more money home for your family.
How would your business and personal life improve if you could make more money on your same level of sales?
Wait a minute … more money for the same amount of work? Is that possible? It sure is; if you want it to be.
Here are three very practical and simple strategies that you can implement into your business today in order to make this a reality for you and your business.
First, increase your prices across the board.
It’s happening all around us these days. I’m not talking about 20-30% increases.
I’m talking about 5-10% increases. If you’re running a $1 million business and you increase your prices by 7.5% that’s an additional $75,000 in profit margin. Do the math; a small percentage change will yield a healthy increase in profit margin.
Second, make sure that you are calculating your gross profit margin correctly.
If you calculate this number properly, you’ll make better pricing decisions.
And you will know when to walk away from those jobs and deals that are losers. You’ll also be more intelligent when it comes to negotiating with your customers, because you’ll know your pricing limits to preserve your profit margins.
Third, make sure that you’re getting the very best price from your suppliers.
When was the last time that you went out to bid for your materials and supplies? Now is as good a time as any to negotiate better terms from your suppliers.
OK, you can make all of these strategies happen in your business today.
When you do, I guarantee that they’ll generate an increase in your profit margin without you having to increase your sales. Need help? Give us a call. We’d be happy to discuss these and another 70 plus strategies we’ve got to increase your profit margins.
Are you looking to increase profit margin in your business?
Contact us at 203.210. 7003 or attending one of our upcoming business growth seminars.