Too many businesses that I have met with in the last 6 years have defined their success based on their turnover; how many packs or litres they can sell, but most of all how much money they take in sales.
This is all very well, but at the end of the day does this really matter? More sales doesn’t necessarily mean more profit, and it is profit that brings in the cash to pay the bills!
So why is it that businesses keep measuring success in terms of sales? Well, its easy to measure for a start. And it’s easy to do things to get more sales too, much easier than it is to work out how much profit you make and how to increase that.
It is true of course that without sales you won’t get any profit, but there is a balance:
What if some of you sales are more profitable than others? If you grow the wrong sales your hard work may actually reduce the profit you can earn.
What if you reduce the price in order to sell more but the extra sales don’t give you enough profit to replace the money you gave away?
What if you take on a new customer who looks profitable, but they need extra work (more packaging, an extra delivery, or additional admin) and that eats up the extra profit?
The way to make sure that you make the right decisions is to understand who your best customers are, what they value about your products and how much profit you make on what.
On 27th February 2018 I am hosting a workshop specifically tailored to Food & Drink Businesses, where we will discuss practical ways to target more of your best sales, focus on what your customers value, how to grow profitably and Brexit-proof your business.
The workshop will be held at The Cedars Inn in Barnstaple. Building on the success of the 2015 workshop it is designed to be a day of constructive and open discussion for all ambitious food and beverage producers.
Tickets are available at £30 per head (including VAT) until 31st January; click here to register.
For more details, or specific information call Susie on 07801 199671.