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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! |