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Improving Business Performance

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.

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