Top 5 Tips to Increase Your Bottom Line

Tip 1: Know Your Customers & Drive Sales

  • Do you know who your target market is? Develop a customer avatar to identify your ideal customers and target market.

  • Do you know what make your customers tick? Utilize your customer data to curate your product offerings, as well as their pricing threshold.

  • Do you have a promotional plan in place? Studies show that customers are more likely to return, as well as buy more per trip, when a business periodically offers promotions on some of their products.

Tip 2: Take Control - Reduce Your Cost of Goods

  • Do you know what your total landed costs per unit are? Understand what should be calculated in total landed costs and demand full product cost transparency.

  • Do you continue to purchase more volume but your product costs stay the same? Ask your current distributor/supplier for a volume discount, shop around for other suppliers/manufacturers, and consider purchasing from overseas.

  • Are you wondering why your margins are lower than you expect? Develop a system to record and monitor product shrink (e.g theft, damages, expired product, etc.) by doing periodic inventories in selected areas.

Tip 3: Ensure That You Are Offering Competitive Pricing

  • Are you competitively priced in your market? Ensure that you are within 10% of your competitors pricing so that you aren't overpriced (driving customers away) or underpriced (leaving money on the table.

  • Do you have a pricing strategy in place? A successful pricing strategy should highlight unique and strong product categories while subsidizing less appealing products. Taking a hierarchical approach to contribution margins will ensure that you hit your budgeted margins period-over-period.

Tip 4: Manage Your Inventory

  • Link up your sourcing, ordering, and inventory tracking: Keeping track of your sourcing, ordering, and inventory in one system can help you make sure you are optimizing costs - and keeping everything in stock!

  • Do you have a well executed periodic or perpetual inventory system in place? By periodically valuing and tracking your inventory over time, you will be able to increase your overall margins, increase sales, and free up much needed cash.

  • Are you tired of maintaining your own inventory, warehouse and distribution? Consider using a Third-Party Logistics (3PL) Service to manage your products, order fulfillment, and shipping coordination.

Tip 5: Track & Control Your Operational & Labor Costs

  • Do you track your cost of goods over time to better understand trends and seasonality? By tracking your COGS at least quarterly, you will have better control of your cashflow by forecasting future purchases.

  • Do you calculate and track your workforce productivity to ensure that your staff are working as efficiently as possible? Calculating Sales per Labor Hour is as simple as it sounds and will help you increase productivity and your bottom line.

  • Are you paying too much for operational costs? Continuously shopping around for different credit card processors, insurance companies, and paper goods companies can save you thousands.

Ready to identify ways to drive sales, reduce costs and increase your bottom line?

Book a consultation now! We guarantee we will identify actionable and long-term cost savings opportunities for your business.