Analyze Customer Reports For Maximum Profit Potential
July 10, 2015 | Accounting Standards, Business Plans, Financial Planning
As a Maine-based small business owner, it’s important to be aware of two things. One is the break even point for every customer or client. The second is the status of all business prospects. If these two things are unknown, it might be time to consider the following steps.
- Small business owners and their managers should review the costs associated with selling to and/or servicing all customers. With this information, the break even point for each one can be established. This should be done on a regular basis, and can also be done for large groups of customers that are in the same trade.
- Try marketing to low-volume customers more aggressively, and think about losing customers who don’t’ consistently make a profit for the business.
- Make a list of all the jobs involved in sales or service functions. Then figure out the daily, weekly, or monthly cost of each of these jobs. Doing this will enable business owners to better set fees and prices to maximize profitability.
- Make sure to come up with a way to follow potential customers who respond to marketing campaigns. Don’t forget to follow up with phone calls, emails, or even special offers.
These are four simple ways to make sure profits are being maximized. To learn more about these methods, call Filler & Associates.