Top Tax Accountants for Businesses in Wellington, New Zealand

Know Top 10 ways to increase your profit margins

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• Many business owners think that you need to increase sales substantially to make more money. But often that is too difficult, especially in the short term.

• You cannot increase profit directly however you can do it indirectly. You cannot just say that you’re going to increase profit of your business without some specific strategy.



The Best Tax Accountants in Wellington will offer you business advisory services which are really very affordable and valuable.



1. Figure out your gross profit margin

Make sure you know your up-to-date, overall gross profit margin. It is no good using estimated inventory figures or working from the figure in your last Annual Financials.



2. Analyse your profit margins

Your overall gross profit margin may possibly be deceiving. You can note the gross profit margin on each of your product and service.



3. Increase your prices

Yes, I know it will be difficult. But often a business owner is more worried than their customer. Yes, they might lose the odd customer.



4. Review all your prices

If you charge all customers the same price you will always find that some are less price sensitive than others, especially if they are not paying for the bills themselves. So, you have to review all your prices.



5. No discounting

Discounting is the death of many businesses and you do not even realise how badly it can destroy your margins.



6. Do not compete on price

Differentiate yourself in other ways, whether by giving superior value, going the extra mile or reducing all the other (non-monetary) costs of doing business i.e. effort, time, and anxiety.



7. Take cash discounts from suppliers

It is normally a much better deal than trying to delay payment, even if you are borrowing.



8. Prevent theft

Losing cash is very costly whether stolen by staff or customers. You must have anti-shoplifting or theft prevention system in place, even for staffs as well.



9. Watch supplier bills

Do not surprised to find that you have been overcharged for goods or services which you haven’t received or been billed at the wrong prices.



10. Use inventory systems

Use the inventory system on MYOB to keep track of your inventory. You may find that you have less working capital tied in inventory.



Conclusion

• Eliminate Costly Services And Activities: Look at the little services that you give to your customers. Is there anything that you might reduce or discontinue altogether?

• Raise Your Prices: If your products and services are of good quality, a small increase in your overall price would not drive your customers away.



• Size of Transaction: You should look for ways to up-sell each customer so that he or she purchases more each time.

• Lead Generation• Lead Conversion: you can double your sales and

increase profits, if you can increase your conversion rate from 1 out of 10 to 2 out of 10.

• Cost of Customer Acquisition: It can impact and boost profits of your business dramatically.



BW Miller Dean is a reputed Tax Accountant Wellington. Our business mentoring services will help you to determine what needs to happen and hold you accountable for getting it done.



Contact US

Address: BW Miller Dean Ltd Level 5, 203-209 Willis Street, Wellington 6142, New Zealand

PO Box 11-253 Wellington 6142Phone: +64 (0)4 910 3340



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Top Tax Accountants for Businesses in Wellington, New Zealand

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