February 2018 saw the second running of my workshop “Food For Thought”. They’ve been fantastically well received, so there are plans afoot to organise more!
The underlying theme for the workshops is the fact that lots of businesses are chasing more sales when what they really want is more profit. These businesses need strategies to deliver more profit, not more sales! So that’s what we are seeking to deliver.
There will be more details here when I have a plan for the next event, but in the meantime here’s more information about my motivation for the workshops. If I can give you more information just get in touch; 07801 199671.
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.
You can read more about the topics that were discussed in the following posts: Fail to plan? Plan to fail, where there’s magic there’s margin and You don’t get anything for nothing, Get more bang from your marketing bucks!