If you could trim your costs by a percent, what would that do to your bottom line? Assuming all things remain equal, I've run a quick proforma. Let's assume a retailer achieves $200,000 in annual sales and has $180,000 in total expenses leaving a net profit of $20,000, or 10% net profit margin.
Taking our $180,000 in expenses and trimming them by 1%, or $1,800, total expenses are now $178,200. Total net profit is now $21,800 assuming $200,000 in sales. By saving $150 per month, profitability has increased by a percentage point. What ways can you save money?
Here are five suggestions:
1. Check with your merchant services account. Are they giving you the best deal possible?
2. Talk with your suppliers. Can they offer a better discount, or more favorable terms for paying invoices faster?
3. Are you paying recurring fees for services at your business (i.e. copier service fees)? If so, pinpoint which ones and determine if you can do without the service.
4. Rent. Are you in a position to re-negotiate your lease?
5. Get competitive quotes for everything you buy.
If you don't have the time or energy to do these things on your own, contact Mira, Inc. at 303-242-8930, or visit our contact us through our website http://www.miraretail.com
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment