Ep. 44 - Big Profit Increases From Small Changes

Many businesses continue to struggle to increase their profitability to a comfortable point...consistently. It’s felt that you have to invest into some big marketing campaign or secure huge contracts to make it happen. Well, the reality is most businesses can reap huge profit reward through a series of small changes in their organization and existing marketing practices. Kinda like the tortoise and the hare. Slow and steady wins the race. 

So listen in to this episode as we lay out some practical tips with real life examples of small changes leading to big results.

• Construction example

  • Price, Materials/inventory, labor

• 5% increase in price $50k - $52,500

• 5% decrease in materials/supplies $25k - $23,750

  • Negotiate/switch suppliers

  • Adjust blueprint to reduce need of high cost items

• 5% decrease in labor $15k - $14,250

  • Increase output/efficiency

• Difference in gross profit $10k (20% GP margin) - $14,500 (27% GP margin)

  • 45% increase in GP