BLOG
Read all our blogs here
Are You Getting Crushed by Shrinking Margins?
Are you leaking money due to inefficient systems and shrinking margins? Then welcome to today's blog post, where you'll learn to avoid that trap.
Today, I'd like to introduce you to a concept that will make a huge impact on the profitability of your business (without spending an extra dime)...
INCREASING YOUR MARGINS.
Here are some powerful ways to do just that...
1. Take a Premium Price Position. Many businesses are afraid of losing customers, so they discount their products and services. But did you know that this is actually one of the least effective ways to position your company?
There are limits, of course, but most businesses can easily afford to increase their prices for dramatic improvements to the bottom line.
2. Negotiate Lower Prices from Manufacturers and Dealers. Negotiating lower product costs from manufacturers and dealers is often as easy as asking. You'll be amazed at the kind of results you can get using this simple question: "Is that the best you can do?"
3. Implement a "Lean Manufacturing" Plan. Lean manufacturing isn't about cutting corners – it's about improving efficiency and, therefore, quality! You do it by eliminating waste in the form of overproduction, excessive defects, too much movement (both on the production floor and in transportation), and unnecessary processing. This is a complex but vitally important component of all successful businesses – so be sure to look at how you can make adjustments in your company. (And no...this isn't just for manufacturers of tangible products: you can apply these principles for dramatic improvements in just about any industry!)
4. Stop Stocking Inventory That Doesn’t Move. One of the fastest ways to lose money is by spending it on inventory that doesn't sell! My rule of thumb is to keep inventory for no more than 45-60 days in advance.
5. Watch Inventory Shrinkage. Unfortunately, employees aren’t always ethical, so keep a close eye on your inventory. Sometimes they are your most long-term employees. Have systems and policies in place to prevent employee theft.
TODAY'S ASSIGNMENT: Identify at least three areas of improvement in terms of shrinking margins. Remember that one of the simplest and fastest ways to address this issue is to increase your prices – so I strongly recommend you consider this strategy first and foremost.
Then, because some of these strategies will probably require a bit more assistance to implement properly, get in touch with me. You can call me direct at 262.409.7970 or send me an email at donvanpool@optaprofit.com.
You can also download our free ebook at https://optaprofit.com/ebook
To your success,
Don Vanpool
Are You Getting Crushed by Shrinking Margins?
Are you leaking money due to inefficient systems and shrinking margins? Then welcome to today's blog post, where you'll learn to avoid that trap.
Today, I'd like to introduce you to a concept that will make a huge impact on the profitability of your business (without spending an extra dime)...
INCREASING YOUR MARGINS.
Here are some powerful ways to do just that...
1. Take a Premium Price Position. Many businesses are afraid of losing customers, so they discount their products and services. But did you know that this is actually one of the least effective ways to position your company?
There are limits, of course, but most businesses can easily afford to increase their prices for dramatic improvements to the bottom line.
2. Negotiate Lower Prices from Manufacturers and Dealers. Negotiating lower product costs from manufacturers and dealers is often as easy as asking. You'll be amazed at the kind of results you can get using this simple question: "Is that the best you can do?"
3. Implement a "Lean Manufacturing" Plan. Lean manufacturing isn't about cutting corners – it's about improving efficiency and, therefore, quality! You do it by eliminating waste in the form of overproduction, excessive defects, too much movement (both on the production floor and in transportation), and unnecessary processing. This is a complex but vitally important component of all successful businesses – so be sure to look at how you can make adjustments in your company. (And no...this isn't just for manufacturers of tangible products: you can apply these principles for dramatic improvements in just about any industry!)
4. Stop Stocking Inventory That Doesn’t Move. One of the fastest ways to lose money is by spending it on inventory that doesn't sell! My rule of thumb is to keep inventory for no more than 45-60 days in advance.
5. Watch Inventory Shrinkage. Unfortunately, employees aren’t always ethical, so keep a close eye on your inventory. Sometimes they are your most long-term employees. Have systems and policies in place to prevent employee theft.
TODAY'S ASSIGNMENT: Identify at least three areas of improvement in terms of shrinking margins. Remember that one of the simplest and fastest ways to address this issue is to increase your prices – so I strongly recommend you consider this strategy first and foremost.
Then, because some of these strategies will probably require a bit more assistance to implement properly, get in touch with me. You can call me direct at 262.409.7970 or send me an email at donvanpool@optaprofit.com.
You can also download our free ebook at https://optaprofit.com/ebook
To your success,
Don Vanpool
Privacy Policy | Terms and Conditions