There are three areas you can affect:
- put your price up a little bit – quite easy, and chances are noboby will even notice!
- get your costs down a little bit – harder but can be done, with negotiation skills – also with Lean, Six Sigma, and continuous improvement
- sell more – harder, but can be done, with sales skills
Here I have made a calculator where you can put in your profit and then see what effect small changes will make.
Try putting two of the changes to zero and changing just the third one, e.g. just costs down, or just price up. Try improving them all just very slightly, and see the effect.
And remember:
- I can’t see your numbers! It’s totally confidential
- Remember to put your NET profit, that’s your profit after all of your costs, all the fixed ones, all of your overheads. It’s normally 5-10% but can be 1% (or zero!) or perhaps 15-20% of you’re doing really well.
So – would some training pay for itself, do you think?
Contact me here!
