In today’s economy, businesses are often having trouble with sales and, most often, with increased sales they are still having profit problems. Why is this? Due to the current economic crises, demand has declined and more often than not, the competition responds by slashing prices to boost sales. What they don’t realize is that excessive price cuts are usually harmful to not only their profits, but to everyone’s.
A powerful method to improving profits is to improve your gross margins. Holt Marketing and Management has developed a proactive systems approach to achieve that goal, called the Gross Margin Matrix. For example, a $1,000,000 company that increases its gross margin rate by 2% adds $20,000 to their gross margins.
We have written a blog that details more examples, as well as the key indicators that drive gross margins, the planning system you need to put in place to achieve results, the steps to complete this and an example that illustrates results.
How to Increase Your Gross Margins
By following the strategy utilizing the Matrix Guide and video (an additional link to the video is located below but you will have access to it in the blog post we have linked to), you will have the knowledge readily available to help you increase profits.
If you have any questions or would like to have someone from Holt Marketing and Management explain the Gross Margin Matrix guide further, feel free to call us or contact us. There is no cost or obligation.