Catalyst Consulting International
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Small Businesses

Improve Margins


Higher prices are not the only way to improve your gross profit margin!   Margins are not just the result of prices alone.  You also have to look at how well do your buying, write-offs and write downs, discounting, goods receiving processes and any other element of your variable costs.

You have to understand the role of all variable costs in your 'real' Cost of Sales.   Do you include direct labour, freight and consumables.  Reducing the real cost of sales will improve margins.

Some lines may have better Gross Margins (when properly calculated) than others.   Should you review your product mix?  Removing less profitable lines will improve your overall margin!

Some customers or customer groups are less profitable than others?

Remember, it is the overall Gross Profit you make that pays the overheads and provides your profit!

Catalyst can help in improving your Profit Margins! 

Back to: How to increase profits and cashflow model!


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