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Surviving Hard Times

The pressure is on your profitability so what can you do?
In broad terms there are only three ways to improve your profits….

Reduce Costs
Sell More
Increase your prices

Of the three, Price Increases have the most dramatic effect on profitability.
However, in these hard times, everybody wants a discount, so what do you?

ANSWER – DON’T GIVE TOO MUCH AWAY!

There are many ways to do this and here are a few ideas:

• If you sell products with a discount for quantity, try giving a discount “amount” rather than moving to the next “column break”

• Do you have long-standing customer price agreements – are they still valid – if not cancel and re-negotiate if necessary.

• When did you last increase your delivery charges?

• Another thought. Low Value Orders are dangerous. Are you sure the profit on these orders exceeds the real costs of doing the transactions?  If not you are better off without the order!

If you would like more ideas specifically tailored to your business please contact us