At Biznostics, one of the missions our customers can do is to work out how much profit you’re making in each of your products or services. After all, the overall profit of your business starts with making profit in each of the products or services you sell.
How do you find out what profit your business is actually making?
This is as simple as breaking down all your variable costs and knowing what you are charging your customers at the moment so you can see exactly what profits you are making on each item you sell.
For example, when following up with one of our customer on a particular mission, he was considering to increase the price of his products. So he selected the top 15 products that he sells and discovered that he was losing money on 5 of those products, was only making $5 every time his team did a particular job and on average just $15 on another one. These jobs were actually pulling the overall profit of the business down and in some cases would be better off not doing these jobs at all!
At the end of the day, it is not a matter of how long this has been happening or why it has happened but it’s a matter of knowing what is really going on for each item that you sell. Whether you sell products or a service – it doesn’t matter, the question you should be asking yourself is “What am I really making out of this?” and “What is my gross profit?”.
The reason being is that your gross profit is actually funding the rest of your business. If you’re not aware of what money you’re actually making, you could be like this customer and end up making yourself really busy by increasing your level of work. And yet all that hard work isn’t making you money. But it’s not too late to do something about it.
Re-evaluate your costs and pricing to maximise your profit
So whether you are selling a service or product it’s advisable that you;
– Have a look at your top selling products.
– Determine which ones are making money and which ones that aren’t.
– Implement changes to pricing so that it works better for you.
It’s got to work for you, your customers and everyone involved in your business. Because making a sustainable profit means that you can operate your business for the long-run.
P.S. Whenever you are ready here are 4 ways we can help you build and grow your business:
1) Download your copy of 3 Proven Tactics That Give You 5 Hours Back in Your Week
This totally free guide includes tips, time-savers, and expert advice on how to immediately claim back 5 hours of your time each week. Inside you’ll discover 3 proven tactics to stop time being wasted in your day so you get more done each week. To access the guide click here
2) Watch the Business Freedom Formula Video
In the video you’ll to discover the step by step blueprint we use to help small businesses create their version of business freedom. This could be simply streamlining your business so it runs more efficiently, increasing your profits so you have more choices or setting your business up so you can have time off without worrying that it is all going to fall apart. Click here now to watch
3) Book a 10 Minute Exploration Call
If you would like to explore how Biznostics can help you run and build your business, then book your 10 minute exploration call. On the call we’ll find out a little bit about your business and work out if and how we can help you. Book your call here
4) Join our Business Freedom Program
The Business Freedom Program is designed for business owners who feel stuck in the day to day running of their business and their business is not running as efficiently as they like. It helps you make your business much more profitable, much more efficient and much more enjoyable to work at. We are putting a new group together next month so if you would like to build a strong and successful business email us here with ‘Business Freedom’ in the subject line.