Search

How to improve Your bottom line - Strategy 2 - Pricing

Updated: Mar 9



Based on our experience supporting small business owners, in less than an hour, we are confident we can find at least a 10% improvement to Your bottom line.


What’s our secret sauce?


We ask questions. We listen to Your answers on how and why Your business is not performing. We confirm Your answers with Your financials, and look at the key drivers of Profit:

  1. Cost Structure

  2. Pricing

  3. Lead Conversion

  4. Lead Generation

We then make recommendations on how to improve the effectiveness of one or more of these drivers.


Let’s look at one as an example – Pricing.


A number of the business owners we talk to, when discussing profitability issues, and when asked about the last time they reviewed their pricing typically respond with 'we still have our initial pricing'.


As a business revenue grows, it typically will grow its cost structure. However, it is critical to ensure that any increases in cost structure are properly passed onto clients.


Let’s look at an example…

  • An Arborist business currently delivering to an average of 5 clients per month

  • The business was making little or no profit

  • The Total Expenses (Overheads + Cost of Sales) was greater than 100% ie costs were out waying revenue

  • The business had not changed pricing since inception

  • The business changed ONLY the Pricing – adding 25% to each new quote

  • This generated an additional Revenue of $262.5 K per annum

  • And, provided a return of an additional $131.25K per annum to the bottom line - a 10% profit increase


Would it be worth a 1 hour chat to understand how to add at least 10% to your bottom line? Contact us


Transcend is a team of experienced business coaches supporting You and Your business' growth. For more information refer to www.transcendhcs.com.au.

17 views0 comments