Driving Margin Improvement
Being ‘in charge’ has never been the easy option.
Just like you, all entrepreneurs, business owners and senior executives face constant pressure to deliver good ‘bottom line’ performance. And – being motivated individuals – you put in the hours and the effort to make it happen. As a result, it sometimes feels like you’re on the lowest hourly rate in your business!
Sure, you don’t mind hard work, but surely the results should be better by now?
In this economic climate being profitable isn’t always an easy task.
As a result of inflation and customer pressure, a lot of businesses are finding that they were more profitable a few years ago. New business has to be won at lower prices and existing customers are not buying what they used to. Head Office (or whoever else holds the purse strings) always seems to want more profit than can be produced – they’re never happy with the results.
Has the business lost its way?
Can this be resolved?
Is it time for us to go back to basics?
What can be done to make a step change in our results?
A lot of people are looking for answers. They are realising that it is time to change their path and take action to make the business more profitable. The alternative – stress and burnout – is no longer acceptable. They’ve had a wake-up call to remind them that this isn’t the dream they had all those years ago.
It is time for the Business Reloaded solution.
We’d like to share with you our five-point-plan for margin improvement. This process – available via the request box on the right – will help you to:
Stop thinking of profit in the singular and start working on margins in the plural, leading to an understanding of the real cost drivers.
Understand the importance of finding out which of your customers really make money, what to do about it, and when to fire them.
Appreciate the value of realising which of your products really make money, what to do about it, and when to retire them.
Implement robust Standard, Target and Actual costing systems. In other words, understand what your products should be costing you right now, what they need to cost in the future, and what they actually cost with all the hidden waste and losses.
Get skilled and Value Analysis. Understand the real meaning of value, who is the only person you should listen to when asking about value, and how to be ruthless about non-essential features. With this you’ll learn to eliminate waste and increase margins without sacrificing quality and service.
We’ve seen a lot of success with this process. For example:
Our client was shocked to discover how much they were really losing on their business with a major retailer and, armed with the information, was able to negotiate improved trading terms.
By implementing our five-step process you to will be able to drive margin improvement at the same time as maximising customer value.
If this goal is of interest to you then please take a moment to get more information about the five-steps by submitting your details via the box on the right, or call 0845 519 5480 and ask how we can help.
Margins, how they work and what are the drivers
Without this knowledge you risk focusing on short term profit and failing to deliver long term value
With this in place you will know that the business functions are delivering a viable strategy