Earn More for Your Dollar – Product Mix
Would you like to earn more from your business spend? If the answer is Yes, then Into the Blue NZ Limited have the solutions to help you gain more from your expenditure.
We are different because we back ourselves to achieve a win-win outcome! If we cannot identify profit improvements for qualifying businesses to a value of more than our fees, our services will come at ZERO RISK to you – No Profit Improvements, No Fees.
This is the third in a series of posts. In this post we will discuss how product mix can affect your gross margin. Many businesses, both big and small, are totally unaware of changes to their product mix which may be creating significant variations to their gross margin.
This can result in one, or a combination of, the following:
- Reduced Gross Margin if a high margin product drops in popularity.
- Reduced cashflow from not reducing material order and inventory levels for the declining items.
- Running out of stock of increasing product lines.
- Falling behind competitor innovations.
If you want to stay on top, then you need to know what is happening in the marketplace and how it is affecting your sales / revenue lines.
One of the best ways to identify a change in product mix is segmentation accounting which is not too hard to implement.
It is our experience from using our Rapid Profit Radar Diagnostic, that approximately 50% of businesses are unaware of movements in their product mix.
Profit improvement requires an analysis of both your revenue and your spend. Into the Blue are experts at both analysis and segmentation accounting to identify where you can make improvements to your business.
For most mature businesses we offer a Zero-Risk policy… No Profit Improvement – No Fees.
For more information please either reply to this post or email profit@intotheblue.co.nz
For more information on creating or improving a business model please call John on (021) 625-871, and further more information please visit Into the Blue.
