Over the last few weeks we talked about the “5 Ways formula” that is a proven method of growing the business. This week’s blog is the last step of the 5 Ways method, and it will explain 7 ways to increase your profit margin.
The “5 Ways” formula looks like this:
Leads x Conversion Rate = Customers
Customers x Avg. Value/Dollar Sale x Number of Transactions = Revenue
Revenue x Profit Margins = Profit
What is Profit margin?
Profit margin is the profit percentage of each and every sale. Simply put, if a business sells something for $100, and profit was $25, the profit margin is 25 percent.
Often the easiest path to growth your profits is to focus on your margins. Successful businesses work hard to ensure that percentage is as high as possible.
Watch below video to see our top 7 ways to increase your profit margins.
If you have any questions, please do not hesitate to get in touch, we’re here to help!