Welcome to The Max Profit's 40 Weeks to MAXIMIZE your business profits!
Read all the way down to get the TIP OF THE WEEK!
Friday, 13th of March 2015
This week and for the next 34 weeks, we will take apart your business and work on each part in 3 week blocks. In each 3 week block we will IDENTIFY, ANALYZE and then IMPLEMENT changes to make in each part of your business that WILL yield results GUARANTEED!!
If you participate and follow along each week, applying small changes and tweaks to your business model/operations, you will see BIG results in increased profits for your business. Even if you can - or only choose to try one or two of the 3 weeks blocks, you will see positive results GUARANTEED!
We will be analyzing the following areas of your business:
1. INCOME / REVENUE streams
2. PRICES / COST of product
3. SALES / LEADS programs and methods
4. What your Business OWNS and how to maximize that
5. What your Business OWES and how to minimize that
6. MARKETING
7. EXPENSES - Facilities and other costs and how to minimize those
8. PRODUCTION and OPERATIONS
9. HUMAN capital - how to minimize the cost of Payroll and Managing Employees/Contractors
TODAY! We will work on ANALYZING your Cost of Goods Sold (COGS) and PRICING on your Product or Services. NEXT week we will IMPLEMENT changes based on the items you have identified and analyzed so we can start MAXIMIZING your business profits.
EACH WEEK we will also be offering a general TIP for Making More Money IMMEDIATELY along with this informational blog that can be applied to ANY business.
I will be available to you throughout the rest of the week for any specific questions you have regarding YOUR business and identifying, analyzing or implementing any changes, methods or systems for your business!
This week's topic COGS - or Cost of Goods Sold involves all of the DIRECT costs for the delivery of your PRODUCT or SERVICE. We will also talk about making CHANGES to your LABOR, PRODUCT or MANUFACTURING COSTS in the weeks to come that will help your business reach its MAX PROFIT!
ANALYZING the Cost of Good Sold (COGS) that you have IDENTIFIED is our goal this week. The purpose of the ANALYZATION is to have all the information needed to make an educated decision on what changes need to be IMPLEMENTED next week and the weeks to come.
No matter what "type" of business you have, or what industry it is in - taking apart/looking at your Cost of Sales or Delivery of Service or Product, ANALYZING at each item or group is not complicated.
IN THE NEXT WEEK: Spend TWO HOURS the first time you sit down and start detailing out the product/groups of items or types of jobs/services you have IDENTIFIED. For the following 4 days, spend 1/2 hour each day OR just block out a 4 hour period and focus on this to get it done in one sitting.
ANALYZE YOUR LIST: Pull out the list you made of all the products you sell, produce or manufacture/ OR the types of jobs/services you provide.
CAREFULLY ANALYZE: For each item or type/group, figure out YOUR DIRECT COST of delivering/selling each item or group/type. The DIRECT COSTS include things like product purchase cost, cost associated with manufacturing or producing your product, LABOR directly associated with those items including sales commissions in many instances, shipping costs are also included (on both ends of the transaction).
PRIORITIZE THE LIST: After carefully analyzing the COST of each product or service you deliver and COMPARE them, PRIORITIZE each in order of which ones bring you the MOST Gross Profit. If there are 50 items, for example, #1 will be the one that brings the company the MOST Gross profit daily, weekly, yearly and #50 would be the one that shows the LEAST amount of Gross Profit.
When we get to next week, you will pick the first 20% of items bringing your business the HIGHEST/MOST Gross Profit and spend time developing those items, figuring out how you can sell MORE of that product or service. You will decide how to move your marketing dollars/resources around so you are focusing on the TOP 20% for the next 90 days.
TIP OF THE WEEK!
As you are IDENTIFYING the COGS (cost of goods sold) for the products and services you sell, manufacture or provide for this 10 month project to find your business's MAX PROFIT, pick out off the list you made, the product or service that is selling the LEAST and promote it in some way for the weeks to come, TRY THIS project! You will LIKE the results!
After looking at this product or service and its direct costs in depth, consider the following and TAKE ACTION!
Product - retail or wholesale (manufactured or produced included) - If you have a product or LOT of products sitting on your shelves or in your warehouse NOT selling, look very carefully and think about WHY?? Is it not selling because of no interest, OR is it not being talked about in your sales program? WHY? I promise you there is a reason... IF the reason is that your sales team is not trying to sell this product to the right buyer - find out if that is a profitable venture - if so.. do that! IF you decide the interest is not there OR this product has been replaced with a IMPROVED product, get RID of the product, sell it at a discount, sell it to a competitor as a whole lot, get it OFF YOUR LIST, #1- it is wasting your space and time, #2 - getting rid of it could boost sales for now. IF you have 2 or 3 or even MORE products like this - do the same! You and your sales team need to be focusing on products that are and will sell.
Services - Look at your list and pick the service or 2 or 3 services that are at the bottom of your list. These will be the service or services that are NOT selling. Analyze the situation and figure out WHY? Are your representatives not trying to sell them? If not, WHY? Are these services not needed by your current clients? Do you need to try to sell them to different clients? If so, is that PROFITABLE? What makes the most sense? Maybe you should take them off your list, not offering them in the future, maybe alternatively, you should consider going out and actively PROMOTING them! Decide what to try, give it a time frame and DO IT! Starting TODAY!
This activity, WILL absolutely boost your sales in the next few weeks! If you would like some coaching about your specific situation, or would like a representative to handle this project for you on a more in depth level, feel free to contact us, our profitability specialists can help! Visit our website and fill out a contact form: www.TheMaxProfit.com or call me directly at 360-490-7045.
Be BOLD! Take ACTION! You will like the results!
If you would like to speak to one of our consultants to brainstorm how to work with the list you made last week, or how to identify the direct cost of products and services for your business - visit our website and fill out a contact form we would be glad to help! TheMaxProfit.com
Looking forward to next week and the 34 weeks to follow and getting to know some of you while helping your solve some of your biggest questions/puzzles.
Check out our website at: www.TheMaxProfit.com and if you need help with your business, fill out a contact form and one of our consultants will contact you. You can also give me a call directly at 360-490-7045.
Have a great weekend!
Renee Johnston
CEO
The Max Profit
Business Services Group Inc.
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