Thursday, March 28, 2024

Increase Your Profit Margins

Must Read

Man holding briefcase full of money

.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


- Advertisement -spot_img

1 COMMENT

  1. That is something to consider. It’s not just the number of sales that come into your door, but how are these revenues contributing to your bottom line

Comments are closed.

Latest News

Come Up with a Great Business Idea

Choosing what business to start is one of the toughest decisions you will make. Here are the steps to help you come up with a great business idea.

Offer Excellent Customer Service

The quality of your customer service is critical to the success of your startup business. Great customer service is needed to attract and retain customers, and compete in the marketplace.

More Articles Like This

- Advertisement -spot_img