Measuring your sales and margins provides insight into which parts of your business are performing well and which ones need improvement.
With improved margins, you don’t have to generate as many sales to get the same profit. Better still, lift your margins and achieve higher sales; you’ll get even more on your bottom line!
A couple of strategies to lift your margins:
1. Set targets and budgets for team members and jobs, and share these with your team.
Have brief weekly meetings to celebrate achievement and share ideas to improve results.
2. Ensure your pricing includes the cost of consumables, administration time and software.
Adding a simple admin or consumables charge to every invoice will make a big difference over a year.
3. Back cost individual jobs or projects.
Then compare the actual results to the quote you provided or the margin you expected from your price list.
4. Up-sell and offer options to your customers.
Options give the customer a ‘choice of yeses’ and you’re able to increase your average transaction value; often more return for the same amount of effort.
5. Keep in regular contact with your customers.
Network with them and create opportunities to contact them - or for them to come and see you. More contact will result in more sales. Did you know that it’s six times cheaper to sell to an existing customer than a new one?
Of course, there will be many other specific strategies relevant to your business.
Book a time with us about creating your margin improvement plan.
''Many receive advice, only the wise profit from it.'' - Harper Lee