by Dr Greg Chapman
Most businesses have a range of products and services they sell, and hopefully they all make a positive contribution to your bottomline, but this is not always the case. Too often marginal products and services are being promoted generating profitless turnover and therefore a loss when the cost of the sale is included.
It’s essential when deciding how to allocate your precious marketing resources, that they are focused on your most profitable products and services. The problem is that many business owners don’t understand the true cost of goods sold, and thus the profit for each of their products and services. While consumables are readily identifiable, the labor and other business resources are not properly allocated, resulting in a distorted picture of the profitability of each product and service. In addition, the true cost of the sale for each has not been calculated.
As a result of an inadequate understanding of the profitability of the individual products and services poor marketing decisions are made by the business. More...
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Dr Greg Chapman is the Director of Empower Business Solutions and is Australia's Leading Advisor on Emerging Businesses and provides Coaching and Consulting advice to Australian Small Business Owners in Marketing & Business Strategies Planning & Systems. He is also the author of The Five Pillars of Guaranteed Business Success and Price: How You Can Charge More Without Losing Sales.
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It’s essential when deciding how to allocate your precious marketing resources, that they are focused on your most profitable products and services. The problem is that many business owners don’t understand the true cost of goods sold, and thus the profit for each of their products and services. While consumables are readily identifiable, the labor and other business resources are not properly allocated, resulting in a distorted picture of the profitability of each product and service. In addition, the true cost of the sale for each has not been calculated.
As a result of an inadequate understanding of the profitability of the individual products and services poor marketing decisions are made by the business. More...
Share this article: Are You Promoting the Right Products and Services?
Over to You. What do You Think? Post Your Comments Below. [Note to those seeking a free ride on our google ranking, blog spam will be deleted,but genuine contributions will be happily published.]
Dr Greg Chapman is the Director of Empower Business Solutions and is Australia's Leading Advisor on Emerging Businesses and provides Coaching and Consulting advice to Australian Small Business Owners in Marketing & Business Strategies Planning & Systems. He is also the author of The Five Pillars of Guaranteed Business Success and Price: How You Can Charge More Without Losing Sales.
Promote Your Business on our Facebook Fan Page
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