How can you make more profit? The Parsnip says you have only seven options: Price up – experiment with different amounts and see what happens, try it on different segments for less risk and more information, make small changes but keep going. Add value – don’t be a commodity or it’s only about price, make yourself […]
You need to be losing 50% – 75% on price! Here’s proof
Here’s a very simple spreadsheet showing that as you put your price up the quantity sold drops off in an exponential way (the red line) Your turnover (or income) is price x quantity sold – the green line Your cost depends on how many you sell (the purple line) Your profit is turnover (income) minus […]
Three pricing charts for you to use
You might want to print these off – or bookmark this page for future reference. And make sure your sales people see this first chart before they give a discount!! for example, if you are making 5% profit and you give a price discount of 3%, you’ve got to sell an extra 130% to make […]
Why is your boss so mean?
People often say to me that their boss or their company is mean: “All we want is a 5% payrise” or “All we want is one more person to help in our team of 20”. But both of these would mean a 5% increase in costs, and if you’re making only 5% profit this would […]
My top ten actions to make your business more profitable
Put your prices up so you can get rid of the unprofitable customers and only keep the ones who really appreciate you Negotiate over prices, extras, and time – an hour a week is a week per year saved, and 5% might be enough to double your profit Get your quality up to 7 or […]