Dave checked his sales report from last month.
He’d sold twice as many units as usual!
Later, when his bookkeeper processed it all, he learned he’d still operated at a loss for that month.
He struggled to understand why.
Dave had been trying to maximise his sales – his top-line revenue.
This seems like a good idea, on the face of it. After all, all those competitors boasting about their 8- or 9-figure businesses are referring to their top-line revenue.
He’d found the winning formula of price + marketing strategy and tactics that had boosted his sales so incredibly last month.
But he’d neglected to think about his costs.
Oh, he knew exactly down to the penny how much each unit cost to make.
Those pesky overheads, though. They’re so troublesome.
And he needs to set prices to maximise the profit margin, not sales revenue.
There are lots of fancy analysis software packages available, and big companies pay some very pretty pennies for them.
But did you know that you can do quite a bit of price optimisation using Excel? It is more than sufficient for most small businesses.
If you’d like a hand with this, just drop me an email.
Using your numbers to help make your business better
Do you wish you understood how to use your data to make decisions more confidently?
That's what I'm here to help with.
Hi, I’m Sara-Jayne Slocombe of Amethyst Raccoon. I help your small business thrive using the power of your numbers, empowering you so that you have the confidence and knowledge to run your business profitably and achieve the goals you’re after.
I am a UK-based Business Insights Consultant, which means I look at your data and turn it into information and insights. I separate the noise from the signal and translate it all into actions that you can actually take in your business.
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