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Improving Business Performance
What you can do to improve business performance”
- Increase the number of enquiries
- Increase the number of conversions from enquiries to sales
- Increase the average value of sales
- Increase the number of times people buy from your business
- Increase the gross profit %
For example (hypothetical business)
| Annual enquires | 11,000 |
| Conversion to customers | 12.7% |
| Number of customers | 1,400 |
| Sales | 3,225 transactions |
| Frequencey of business by customers | 2.3 times |
| Average price | $310 |
| Sales | $997,500 |
| Gross Profit % | 39% |
| Gross Profit | $389,025 |
If, though a concentrated effective “non-price differentiation”, including quality, warranties, guarantees, pre-sale service, staff knowledge, availability of product, website, after sales service, negotiations with suppliers and improved buying strategies, the following figures emerge:
| Number of enquiries | 12,000 |
| Conversion to customers | 9% |
| Number of customers | 1,800 |
| Frequency of sales | 2.6 times |
| Sales | 4,680 transaction |
| Average price | $328.60 |
| Price increase | 6% |
| Sales value | $1,537,848 |
| Grodd profit % | 41% |
| Gross profit | $630,517 |
| Gross profit improvement | $241,492 |
From which should be deducted costs incurred in improvement and implementation of the ‘non-price differentiation’ strategy.
Using our cutting edge financial modelling software, we can assist you in undertaking a review of your business procedures to determine profit improvement strategies. Not only would you improve your profit, but also your cash flow and the value of your business.
We greatly value our clients and are committed to honouring the trust they place in us by creating visible results for them. Get in touch to find out how we can help our clients maximise profits, minimise tax, and invest the balance for growth.
written by:
McKinley Plowman
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