Revenue (2 of 5): Profitability - John M. Leask II CPA/ABV, CVA


Part 2 of a 5 part series

Warning Signs:

    • Falling profits (before owner’s compensation).
    • Falling owner’s compensation.
    • Falling or stagnant sales with falling profits

  • Rising expenses.
    • Cost of goods sold.
  • Significant adverse deviations from budget.


  • Increase the average sale size.
  • Use tie-in sales and follow-up sales; the real profit is in repeat sales.
  • Package deals increase sales: volume, companion products, larger size, service.
  • Make one shot promotions pay off; bounce back sales promotion with order.
  • Sell using piggy back promotions with bills promoting your own/others’ products.
  • Broaden your market by “bundling” products or services.
  • Make the merchandise/services more attractive to the customer.
  • Increase sales with loss leaders as bait to bring in customers.
  • Print descending dollar balance reports by computer and use them.
  • Identify and care for your top (15%) customers/clients with excellent service.
  • Identify existing and future clients/customers you want in your top 15%; target them.

Back to The Business Doctor

>>Revenue (1 of 5): Sales / Profits
>>Revenue (2 of 5): Profitability
>>Revenue (3 of 5): Marketing to Grow
>>Revenue (4 of 5): Selling
>>Revenue (5 of 5): Dealing with Hard Times