Increase Your Profit Margins

.Increased earnings are good, but your business needs to improve your profit margins as well.

If you are running a retail business, for example, Bob Phibbs in his book The Retail Doctor’s Guide to Growing Your Business: A Step-by-Step Approach to Quickly Diagnose, Treat, and Cure recommends some ways you can increase your profit margins:

1. Increase prices – not necessarily across the board, but selectively such as the most popular items
2. Narrow your focus– you can’t be all things to all people.
3. Limit the discounting
4. Cut waste and stretch what you have
5. Schedule your employees based on the real needs of the business
6. No overtime
7. Stop scheduling for convenience of employees
8. Award extra hours based on merit
9. Know how much each staff member actually makes
10. Pay bonuses based on the amount of profit, not amount of sales
11. Tighten systems and procedures to prevent theft
12. Tighten inventory

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