best way to increase profit?

Answer 1

One obvious way to increase profits is to increase sales. And we'll get to that in a minute. But first, consider the others ways a company can increase profits:

Improving Operations - Streamlining operations and improving tracking can lead to real savings that increase profit by reducing overhead and, in some cases, reducing labor costs by saving time. We can help you identify the leaks in your budget and the chinks in your operational armor.

Increasing Effectiveness - The more effective a company's methods and systems are, the greater the profit will be. Sometimes all it takes is a little tweaking to make a program more effective. Other times it takes implementation of an entirely different system. Either way, we can help you get more out of your expenditures of time and money.

Enhancing Marketing and Branding - We believe that the two are inseparable. Marketing may be the foundation, but branding is marketing as an art form. From business cards and letterhead, to advertising of all types - print, radio, television, direct marketing and web sites - everything has to work together with a well-crafted public relations effort. Proper execution ensures the synergy to produce exponentially greater results. We can show you how to blend all of these activities seamlessly to create an image that makes people want to do business with you.

Now that you've combined efficiency and effectiveness into true efficacy, increased visibility and improved brand image, it's time to think about increasing sales - the lifeblood of any business. A well-trained and properly motivated sales team is the key to success. How well your team interacts with customers before, during and after the sale will determine your level of success. Lane has led numerous sales teams to success on countless projects in a broad variety of environments, including:

Retail
Business-to-Business
Catalogue & Web-Based
Service Industry
Fundraising
Direct Marketing --------------------------------


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Increase your profits by reducing your cost per product without reducing your prices. If you can't do that, you might consider increasing your hourly rates.

Before you do, however, think about how you are positioning your services in the market. If your clients work with your because of your low rates, they may not tolerate a rate increase. You don't want to lose clients!

Reducing your rates will not increase your profits. In most cases, when a business reduces its sales prices, it’s hard to build up enough volume to make up for the reduced profits. The main reason to do it is you have an operational advantage over your competitors.

Sometimes those advantages are a delusion.

A temporary reduction may bring in more clients, but if you do it permanently, you could find yourself in a costly "price war" with your competition. I think a better strategy would be to increase your promotion activities. See our Better Business Ideas for some ideas.

Obviously, you can’t offer the original IBM PC for $6,000 against today’s competition.

It’s best to seek a competitive situation where it’s "easier to win," through offering a product or service that’s highly valued to a highly-defined marketplace where there isn’t much competition or you are viewed as the superior choice.

Good luck!

Answer 2

Increase volume at the current markup.
Cut expenses, (especially descretionary expenditures), diminish theft and inventory shortage, maintain same markup.
Increase markup. Be mindful of competition.

If you have commissioned sales people, INCREASE HOUSE SALES. Decreases selling cost.

Be certain you are getting the lowest price from mfg. I've seen a half dozen different price lists to dealers.

It's critical that you take all trade discounts on invoices.
Those discounts paid my salary in business.

Audit invoices for correct costs and freight. Many errors there.

Answer 3

To profit on nuts or bolts is difficult because your buying power is set and your profit margin is a result of the difference between costs and retail.

Now on the other hand if you consider labor into the profit margin then it is easy to see how different scenarios will pan out.

I can make my company some money in material acquisitions but I make them a fortune saving labor on installation, fabrication and material handling processes.

Answer 4

Raise Prices

Answer 5

increase revenues and decrease expenses