Show Me the Money!

Credit: Peggy Gillespie aka Her Ladyship

All of my conversations share a common theme. "How do I make more money?" If I'm talking to a rep they want to sell more stuff. They also want to earn more on the stuff they're already selling. It's exactly the same for owners/managers. They want more sales, less price pressure and a better bottom line.

There is nothing wrong with that either. Goofy notions set aside, nobody is in business to lose money. Nonprofits and community programs need money too. It's safe to say every street address you pass has a plan to get money and wants more.

Your business deserves to be profitable. You owe it to your employees. Don't apologize for that.

I've got some good news. It's right in front of you. You can easily make more on what you're already doing. You can sell more too but that's a different blog.

Years ago I spent some time with a business that was fumbling away millions annually. They were breaking even but margins were shrinking. Costs were rising and sales weren't. It was starting to squeeze cash.

The first thing I did was look at their transaction metrics. They were processing an average of 7,786 orders annually. There were plenty of "sub-jobs" but the number that mattered was 7,786.

I got the salesforce together and asked, "gang, how hard would it be to find $50 in additional charges on each project? What about $100? Can you collect for messenger services, packing, overs, additional deliveries? Look at the work you're booking. What can you offer and charge for that would sweeten each order by $50-$100?"

The team's reaction? With the exception of one contrarian everyone said "sure. That's a piece of cake." They made it their business and the extras happened.

Have you done the math? $50 x 7,786 projects = $389,300. $100 x 7,786 projects = $778,600. It's the same work. It's essentially the same cost. It's just more valuable.

It didn't stop there. We adjusted sales comp to reward reps that sold at higher margins. Commissions were tied to markup. Reps were given a minimum and anything they charged above that was their call. They sold more stuff, made more money and delivered a $2.5 million dollar swing to the bottom line.

Where I come from that's real money!

Want to make more money? Look at what you're already doing and examine how you can make it more valuable. What are you giving away? What services are you failing to offer your client?

Of course, you always need to have an eye on the future. I write about that weekly. You've got to have targets and a strategy for finding new clients. You'll wash out if you don't.

But this blog is about money lying right in front of you. Look at your own transaction metrics. Do the math. You're going to like what you see and can easily do.

Gotta go. Her Ladyship will be asking for a cut of my stash.

The preceding content was provided by a contributor unaffiliated with Printing Impressions. The views expressed within may not directly reflect the thoughts or opinions of the staff of Printing Impressions. Artificial Intelligence may have been used in part to create or edit this content.