Three reasons to take another look at your Profit Margins
Neena Vivash presents on BPP’s ‘Creating Value through Margin Management’ programme, which has dates coming up in May and October in London. Here Neena gives us a flavour of what will be covered in the programme:
It is a beautiful sunny day, sun beaming through the trees, skies are blue, the breeze is pleasant and the woods are sparkling in the sunlight. Life feels almost perfect.
The only thing you can’t see closely are the trees. If you took a closer look some of the trees would be greener and flourishing more than others. Some would be surrounded by add-ons holding back their growth. Towering trees might be depriving smaller trees of sunlight and growth potential.
This is a picture that resembles how most businesses look at our profit margins:
In bundles, product and service groups, in totality mixing product groups, It is worth thinking about the Imperatives for why you should look a little deeper:
• A 1% change in price increase has a greater impact on bottom line profit than a 1% reduction in cost base
• Your biggest purchasing customers could be grossing you the least profit
• Your most profitable product or service might be the item you sell least of and so never hits your radar.
If you want to know more about creating value through margin management then please join me on 17th May – Creating Value through Margin Management