Yes. And you might be able to make even more.
How? By making sure you are charging enough and selling more of your most profitable products or services.
Common mistakes are not knowing your real profit margins and not including the cost of running your business in your pricing.
I’ve seen many businesses pushing sales of products that are actually break-even or losing them money. They strive for more profit and assume they need to sell more product so spend time and money on marketing – yet still don’t see any extra dollars in their hand.
A recent client gained a 20% increase in profit by simply spending an hour working out exactly what his different services cost him. He realised one of his package deals was taking up a lot of staff time but only giving him $4 per customer. He needed to be getting $32. All he did was cancel that package and sell a profitable package. He didn’t need to pump money into more advertising or cold calling.
Make sure you know your margins! It takes time and money to secure customers. Don’t waste it.
A second common mistake is forgetting to include business overheads in pricing. There are fixed and variable costs you have to pay each year to be in business and deliver your product. For example rent, admin, accountants, electricity, insurance, vehicles, supplies, cleaning, laundry, equipment, staff and your salary.
Are you spreading a portion of this overhead across all your products? If not, you could be losing significant amounts of money.
Troubleshooting Expert and Business Coach