Improvements can always be made at the margin – those small tweaks to your process or system can make a massive difference to the end result.
Here are 5 ideas to consider to help lift your margin:
- Negotiate better prices with your suppliers – as they say ‘the squeaky wheel gets the oil’ so if you don’t ask you won’t get.
- Get rid of slow moving items or work that has a poor return – selling old stock at cost will drop your margin but if you replace those items or jobs with higher margin items you will achieve a higher return in the long run.
- Set budgets / targets with your team – give them something to aim for and celebrate success.
- Report your results on a cloud based real-time system – you can’t manage what you don’t measure.
- Review your sales process – do you offer options to your customers? Do you know how to up-sell to higher margin products? Do you even know what products or services give you the highest margin?
Involve your Accountant – not only can we help you build the plan, we can help you with idea generation and make sure you stay on track to do the things you agree to do. Contact us today to book in a Business Planning Session.