Increase your profits - 3 Simple Steps

17th Feb 2009

Did you know that the average business in Australia can increase its net profit by a staggering 95% by doing just three things?

                                                      Before$        After$

1) Increase sales by 5%             Sales           1,000,000     1,050,000

2) Reduce product costs by 5%       Cost of sales     700,000       665,000

                                    Gross Profit      300,000       385,000

3) Reduce overhead expenses by 5%   Overheads         200,000       190,000

                                    Net Profit        100,000       195,000

Net profit will increase by a staggering 95% (as in this example +$95,000)

FIVE MORE STRATEGIES FOR THESE RECESSIONARY TIMES

To keep customers during a recession, a strategy for your customers may be best for you.

• Write a personal letter from the manager to key customers letting them know how much their past business has been appreciated.

• Survey your competitor’s customers to find out what attracts them to these other businesses.

• Survey your own customers regularly both to find out what they like and dislike

• Train staff to respond quickly to customers complaints

• Follow up on lost accounts … and circulate the reasons amongst the entire staff, together with the steps necessary to prevent a recurrence.

REMEMBER : FOCUS ON WHAT YOU CAN COTROL AND CHANGE ie (YOUR BUSINESS) not on what you cannot control and change ie. (the economy).

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